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DRAFT MINUTES META FIELD MANAGERS' 1ViEETING Dubai Intercontihental Hotel Dct'ober 19, 1992 Present: Mr. B. Baroudi - Philip Morris (Chair comPan}v), Mr. S: Miand Mr. C. Al Sidaoui Mr. G. hFassif' Mr. R. Davies - B.A.T. (Treasurer) - Mr. C. Dufty Mr. R. Galgut Mr. J. Blakelock - Brown & Williamson Mr. K. Salman - R J Reynold:s Mr. R. Hancock - Rothmans Exports Ltd'. Mr. J. Bevan Mr. Ii. Morton - Tobacco Exp~o'rters~ Ltd., -~ B'ah~~raiin Mr. J. Backhouse - Tobacco: Exporters Ltd. - Dubai : Mr. L. Cunningham - Tobacco Exporters Ltd. -.Kuwait Mr. R. Allen - META, Dubai Distribution: All Presem + Mr. Ml Whitehead - Gallaher International Ltd. 1

AGENDA I. Purpose & Scope of Convening Field Managers (RA). II. Key local issues/threats Marketing/advertising freedoms Local, Voluntary Codes Specifications/Product regulations I Public Smoking Misinformation III. Key Functions/Resources I mproved monitoring Commzurnications/Imedia relatiions I Legal issues IV - VII. Co-ord'idating Industry Actioni 1)~ _ Involvement of distributors & other localalllies Improving local awareness of industry's quality product Seeking out opinion}formers through distributors 2

I) Purpose & Scope of Field Managers' Meetings Mr. Allen emphasised thatthisvras the first time that~ META companies'field managers had gathered together M discuss and share views on the issues confronting the indiustry as a whole. Att'entzon was drawn to the two backgroundd papers outlining the scope of'the points to be discussed. A principal object of the meeting was to hear the views of the Field Managers themselves. The chair company drew attention to "1VIETA's Priori'ties and Proposed Work Plan 1992-93" (attached to these rninutes). The confl'icts inherent in the competition between six companies had to be reconciledi with the need to find common interests as the industry as a whole faced growing restrictions in the GCC. The field managers" group represented a major' opportunity to advance the cause of the industry as a whole. Key issues and threats concerned: 1) Marketing freedoms 2) Product regulations 3) Public smoking bans 4) Scientific~ misinformation and' the~ Ind4stry's~~ imagE~ Key Functioms & Resources covered; a) Environomental' monitoring and early warning b) Informationi management c)Co-ordi,natingindustry action d)~ Cbmmunications/Mledia relations A minirnali degree of consensus within the group was essential in diealing,with the issues it faced. It was essential each company keep field managers in touch with what was going on in META and, decisions taken at successive meetings. 3

II) Key Local Issues;/Threats 1') Marketing/Advertising Breedoms In, Bahrain/Qatar there were several grey areas conce rning, what constituted outdoor advertising. These grey areas included point of sale material where the initiative was left to municipalities. (The same held gpod for Oman). One field manager felt it was important to treadd carefully when preparing overtures to the authorities for fear of ' antagonising them by seeming,to flaunt local regulations even when these were fluid or unclear. Promotions were a big problem in Qataq less so in, Bahrain. The IAA Chapter being, started in Bahrain could help redress these problems. Kuwait was a good~ example of the ebb-and-flow of restrictions aga2nst the industry and the up-and-down effectiveness and interest of the cenrt.rall and munieipall authoritiies. A stand had to be made and the industry's point of view forcibly expressed otherwise the industry would get nowhere. At the same time the industry was not structured ini such a way that coalitions could easily bebuilte toexpressa common viiewand stick to it. Il.ocal Working Groups had so, far not worked wellll If the industry freedoms were to be best served then META had', a role locally. But with line managers having a very well and clearly defined! role it was asking,t'oo much to get local line managers to sit downi and~ agree on . acommon line in a, competitive market unless the nature of the issue confronting the industry had been communicated to each line :::a:>ager by their META company principals. Any local meeting of companies had to be endorsed' from higher up. If t'hese were sanctioned then adi hoc ' brking Groups could be formed to act on behalf of all companies with the purpose for example, of clarifying~ a situation or getting,perrnissiion from a municipalitysuc~h as Sharjah in the UAE on behalf of all companies. and%or b) improving the understandling of the decision-making process and the players behind it at local municipality level. Consensus was for the META Secretary to familiarise himself with local 4eci'sion-niaking process and~ through Working, Groups to improve a) market intelligence b) establ'2shment & effectiveness of Working,Groups"action, on, behalf of META. 4

Agreed/(subject to overall META approval)) i) In t'he. U.A.E:, a Working Group to be set up by, the iviETA Secretary and consisting of the chair company, htJl +R, Rothmans//TEI, and the! META Secretary. ii), Ad hoc Working Groups ini the other GCC countries including Saudi Arabia. iii) Proposals to go from these Working Groups up to, METAA principals as well as down~ from these to line managers. iv) The META Secretary willi set up the ad hoc Working Groups for each case after prior approvali from META company priincipals. to iident!iify the threat!s: identify the decision-making process. decide on the next steps to meet a particular local requirement. Local Voluntary Codes Agreed: 1) On, the need for a Voluintary Code of Behaviour for each country. ~ 2) On preference for two basic documents to comprise the Code. a) basic & generic covering sensitive items where the industry needs to correct its image. : an in-house document~ reflecting the spirit and -goodiAriEl intra-indhrstry. he. "special permissions" obtained by individual companies. N N 46 5

Product Regulatibns Date-Coding There are at'~ present' four pack variations for the six GCC countries: Kuwait . year only. KSA . month & year plus front-of~pack warning. Qatar . month & year Otnan/Bahrain: no production date UAE . year only (under threat) It was pointed out that in 1987.the industry had fought to get the "side-of . pack" health warning acceptedi and if the industry was now to concede without a fight the industry would end up being confronted with expiry as well as production dates. MCLs The meeting was renunded of the imminence of the GCC anti- stnokingsyanposia in B~ahrain, and the proposal tio~further lower tar & nicotine levels. Consideration of T&N levels should be separated, to, improve the argument too the authorities that pressing T&N levels down simply increases consumers' tendency to compensate. . 4) , . Ptnblic Smoking This was also, an item on, t'he agenda to be discussed at the G Cr'.anri- smoking, symposia. Mr. All.en had preparedl a paper to be tabled at the META rneeting, on 20th October.

II.I) i Key Functions/Resources Improved Monitoring The Secretary, asked for greater involvement from distributors to improve market intelligence but field managers indicated there were difficulties which the distributors would have about becoming more involved on behalf' of META companies. Agreedt Working, Groups would keep in touch with national and local Chambers of Commerce to improve monitoring and market intelligence. 1V-VII) Cb-ordinating Industry Action As in II & III above. RRA 21.x.92 7