Tobacco Documents Online

Dotthled in size dttring 1961, Lorilho-d's Rese~trch Cettter in Greensboro. N. C,. house.~ the ]btest scientists attd htboratory eqttipment to be ]ottnd in the tobacco indttstry. Its pioneering ittvestiealions tll't" careJttlly .~ttctrth,d. trader complete "secm-ity laboratory for instruments so delicate lhey cannot operate under normal laboratory conditions. The latest product of Lorillard research is, o[ course, the Company's new- est brand--York Imperial-size cigarettes. Over a period o~ many months, our scientists developed and tested dozens of tobacco bleads before finding the precise mixture~rich and flavorful with no trace o~ harshness~t~or an Imperial-size cigarette. The blend finally selected for York, which uses its Lorillard-developed Imperial-length instead of a filter to deliver its character- istically mild, smooth taste, is comprised o~ 38 different premium tobaccos among the Bright. Burley, Maryland and Oriental types. Filter cigarettes being tested ]or ease-o/-draw during production; Soxlet extractor whh'h is used #t analysis olr Lorilhtrd lea[ tobacco; Highly sophisticated chromatograph to identify various elements in cigarette smoke. These attd other scientific devices are used to develop tobacco product innovations and insure the highest possible quality. T154230493

Certainly the most significant event of 1961 for Lorillard's Leaf Department was the official opening late in the sear of our new tobacco leaf processing and storage plant at Danville, Virginia. A fitting companion to your Com- pany's "showcase" manufacturing plant at Greensboro, 1'4. C., the new Dan- ville facility is a handsome, expandable, highly efficient addition located in the heart of tobacco-land. Its opening was attended not only by Lorillard officials and local Danville dignitaries, but by representatives of virtually every area of public and private interest. The Governor of Virginia, Albertis S. Harrison, Jr., keynoted the dedication ceremonies (just two days after his election and as his first official duty). Constructed to meet Lorillard's expanded tobacco requirements, the new plant at peak capacity will be able to process enough tobacco each hour to make approximately 30 million cigarettes, and store some 180 million pounds of tobacco (equal to 90 billion cigarettes), Now in substantial operation, the facility has two production lines going (a third is to be installed) and I0 of its 32 warehouses are already built and in use. It features a highly- automated, straight-line flow of tobacco from the 320-foot-wide receiving area at the front of the processing building through to the rear of the plant almost one-fifth of a mile away. There the sealed hogsheads of tobacco emerge for cortveyance to the nearby warehouses. With 14V2 acres of enclosed floor space, 12 acres of outside paving, and a fully-fenced and landscaped 148 acre plant site, your Company's newest facil- ity has been designed with a built-in expansion potential. All installations-- processing plant, warehouses, wiring, plumbing, etc.--have been geared for the expected growth of the tobacco industry, anticipated changes in process- ing and storage techniques, and rapid advances in equipment and machinery design. From more than 10 states throughout the South, the finest tobacco grown converges on Lorillard's new Danville plant for processing. Here, in a unique, At our new Danville, Va., ]acility, stacks of tobacco--each weighing almost 1000 lbs.--travel on a miniatttre railway to the start of the proce~sbtg line. In the complex sealed-in system, tobacco is subjected to a var&ty of treatments to ensure ~ull, mild "ll Ti54230494

KENT KING SIZE OLD GOLD T154230498

To dedicate our ne~t" Daaville pk~nt, Virginia's Governor Harrison and some two htmeh'ed state, city and htdttstritd leaderx tom'ed the phmt with LoHllat'd officials (left), and Danville's Chaltlbet" o/ Coltlltlel'ce xponsored a Itll1(gteol! bt honor o/ the el'eltt. sealed-in system, the tobacco is literally floated on air from one operation to the next, with automatic controls governing each step along the way. Final step~Ioading into giant wooden hogsheads, which are stored in the new alu- minum warehouses (each 301'x I15") until the tobacco is perfectly aged. Only then is it transported to our manufacturing plants to be turned into finished Lorillard products. The new Danville plant supplements your Company's other processing and warehouse facilities at Lexington, Ky., Louisville, Ky., Richmond, Va., Madison, Wis., La Crosse, Wis., Evansville, Wis., and Lancaster, Pa. flavor. After emergh~g /tom the processing line, the tobacco is air-lifted to chtttes where gia/zt phtngers pack it l~rmly into hogsheads, which are the/! moved to the tzew, nearby warehottses where the tobacco is "pitt-to-sleep" for the long period o[ aging. T154230495

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Your Company's advertising during 196 l was more extensive and more effi- cient thart ever before. More people were exposed to our commercial messages and more of them bought our products than at any time in history. There can be no more forceful testimony to the efficacy of any advertising effort. During the year. each of our major brands was given appropriate adver- tising backing and all media were used. Nighttime network television remained the cornerstone of our ef[ort, while print media, radio and daytime television played supporting and supplementary roles. In the Fall of 1961, we were sponsors of seven nighttime TV programs-- with an average audience of better than 8 million families viewing each show. Careful planning and strategic buying of network properties enabled your Company to develop an over-all network TV campaign reaching about 50% more people than previously. In addition, we have greater frequency of com- mercial messages and, above all, greater flexibility in the TV structure, so that any brand can benefit by an extra "push" at any time. Kent is advertised on Ed Sullivan and Hennesey, and The Price Is Right is used for Newport. In these three programs: all time-proven properties of great audience appeal, we are major participants, sharing sponsorship with only one other advertiser in a half-hour segment. Thus. in each case, our sponsoring product enjoys close identification with the show itself. Simultaneously, to round out our nighttime television e~ort, your Com- pany uses another tactic: smaller participation in a greater number of shows-- Jack Paar, Hawaiian Eye, Cain's 100, Frontier Circus, Ichabod and Me and Target: the Corrupters. Ichabod and Me is a half-hour show with several spon- sors; the others hour-long with as many as six sponsors. It is with these "par- ticipating" network commercials that we gain flexibility, for in these shows our various brands can be rotated so that each reaches the widest possible Lorillard's advertising is a yearly mttlti-million dollar investment~much of it is spent on television. To get most retttrn /tom this investment, yo,~r Company employs its os~'n specialists (le/t) and the best available talent b~ otttside advertising agencies. T154230498

I II Bob Vc'right-- Kent TV salesman. Ed Sullivan's Top-Variety Show laekie Cooper in Het~t;esey Each Lorillard cigarette brand has its own zmlque appeal; print (above) and television advertising (right) are coordinated to emphasize this appeal to smokers in all areas. audience. In 1961, Kent, Old Gold Filters and Newport used this system to advantage. In 1962, these "participating" minutes can be used to give national impetus to the introduction of our new Imperial-size cigarette, York. A new facet of our television operation is the use of daytime network television for Spring Cigarettes. This came about as a result of our need to make comparatively few dollars work harder in reaching prospective Spring smokers. Daytime television costs less and at the same time delivers the viewers who represent primary prospects for the Spring brand. In 1961 the traditional print media~newspapers, magazines and Sunday supplements---were used in support of our brands. Magazines and Sunday supplements were utilized to display attractive full-color pictures for both Kent and Newport, while newspapers were used as a major introductory medium for York. Our radio advertising was substantially expanded during 196 I. A ~,igorous advertising tool when properly used, radio advertising has proved most effec- tive for your Company because o~ the highly memorable musical jingles which have been developed for Kent, Newport and York. A pleasing measure of their effect is the number of letters we receive from the listening public con- gratulating us on the good taste of these radio commercials and the "eatchy" quality of the music. Bill Cullen, Tile Price is Right Steven McNally, Star o/ Target: the Corrupters Mark Richman o] Cain's 100 Four Stars Hawaiian Eye The Late-Hour Jack Paar Show .lohnny Carson, Who Do Yott Trtlsr? One of several dayffrne TV programs Ti542304~

international In the international area, your Company during 1961 expanded virtually every facet of its operations--sales, advertising, personnel, number of markets and penetration of those markets. As a result, we are now active in every market of any size in the entire Free World. Over-all, our international operations cover three broad fronts: EXPORT FROM THE U. S. of products manufactured and packaged here for shipment and sale in foreign markets. In export, our sales during 1961 far outpaced the gains made by the tobacco industry as a whole. New markets were added to our export li.~t and Lorillard products are now shipped tt) more than 100 countries and territorie~ lhrotlghottt the world. Leading Lorillard cigarette brands are advertised and avaihthle throughout tl~e Free World. Above, the ]amiliar Kent in exotic Hong gottg; a Spanish btts h~ Madrid displays the traditional Old Gold brand: and in Sottth America, local trucks carry ottr ci.~arettes to retailers. Below, a Finnish witulow and a Swiss cottnter imaginatively display Kent; while replica packs decorate *~'alls bt Tokyo, Japan. Newspapers reaching more than 100 cotmtries carry ads [opposite page) [or o~tr maior brands. TI54230500

LICENSING AGREEMENTS whereby Lorillard brands are produced by reliable manufacturers abroad under our supervision and in accordance with our specifications. Under this program, Lorillard cigarettes are manu- factured and sold in more countries than those of any other domestic tobacco company. These agreements, which now cover 14 countries, are especially advantageous in nations where high tariff barriers make it uneconomic to import cigarettes manufactured in the United States. MILITARY SALES of our products to American military personnel overseas through ships' stores, Post Exchange stores, etc. In view of the pres- ent military manpower build-up, sales in this important area are expected to increase still further. During 1961, your Company's brands registered gains in virtually all world areas: Kent continues to gain in world-wide popularity and is one of the most widely sold filter cigarettes abroad. Old Gold Straights, now being manufactured in the Far East for local consumption, increased its sales monthly and plans are now nearing comple- tion for manufacture of Old Gold Spin Filters in Free Asia. Because of the growing popularity of Newport in foreign markets, the brand is now being manufactured in Finland, and is expected to be manu- factured in other foreign countries during the coming year. Embassy continues to enjoy favorable sales in Italy and Sweden. To back up the growth of these sales and to stimulate additional inter- national advances, local advertising campaigns are conducted in virtually every country to which we export. During 1961, these local campaigns were supplemented by advertising in such international publications as Life Inter- national, Time International, and the foreign editions of the Reader's Digest. For closer control and improved supervision of our enlarged international business, the International Department has increased its personnel--sales, manufacturing, and administrative--at both Lorillard's New York head- quarters, as well as at our two subsidiaries serving foreign markets: P. Loril- lard International S. A., located in Zug, Switzerland, which supervises Euro- pean and African sales; and P. Lorillard Pan American, Inc. which services sales in South and Central America, West Indies and Canada. TI54230501

Nelr Lorillard machinery make.9 ttp to 1500 c~t, arettes pet" miracle. Filter cigarettes (right) come [rom the i~takiltg machines joined at the filter tips. two by two. Cttt apart, hall are tttrned over by belt so that all may be packaged filter end up, The goal of the manufacturing department is always "maximum production efficiency at lowest operating cost." During 1961 substantial progress in this area helped offset the continually rising prices for raw materials and labor-- that beset our industry. Perhaps most significant was the near-completion at year-end of a fully-automated cigarette packaging, cartoning and packing system, which improves packaging quality, eliminates several hand-labor operations and reduces the possibility of human error. The new equipment automatically processes the cigarette pack from the time it leaves the paper packaging machine--through the stages where it is cellophane wrapped, cartoned, sealed, inserted in a shipping case, and palletized for shipment. Your Company's wholly-owned subsidiary, Federal Tin Company, had its best sales and earnings year in history during 1961. These results were achieved mainly as a result of its continued diversification and expansion in the production of paper packaging and cartoning and despite a general con- traction in the market for traditional metal containers. Founded 45 years ago as a metal lithographer and metal container man- ufacturer, Federal Tin's major production until 1959 was devoted to tin pack- ages and metal containers ~or such products as smoking tobaccos, little cigars and similar products. In that year a new Gravure Department was organized and Federal Tin is now solidly in the paper packaging (cartons, packages and labels) business as well. During 1961, the production capacity of the Gravure Depai:tment was considerably enlarged and now produces well over one million cartons and ten million labels daily. Currently, it supplies a sizable portion of Lorillard's carton and cigarette package needs and during 1961 added Newport labels and York cartons and labels to the other items it manufac- tures for the Company. To achieve its increased production, Federal Tin this year expanded its employment rolls by approximately 5 per cent and increased its floor space 19 T!54230502