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- C:(3Ni? 1 [_)isN`PIl1I.- - Mp ii/1 J R A NDUti4- - eA[?ri L 6,. 1977- - TC :_ Mr. J. R. Ave Dr. A. _ W. Spears FROM: Dick Smith SUBJECT: PDC Meeting: 4/5/77 ----------------------------------------------------------------_------ New product, new-brand, established brand and general-product devel- -opment work was-reviewed. -fThe regular_?xchange of information through the PDC is developing'_ important , nekr work, in the- _general project area. ) Our discussion is summarized zn- tl~e following memo, and attached - flow chart. New Products -Enricheti Nicotine_- This continues to be-Lorillard's highest priority project. Work continues against the first-phase goal - a 2- mg . tar product with overall parity to KCL 85J. (The second phase-_goai is an E mg. product with Marlboro 85 as the target.) R&D will let Marketing/h:RD k-riow when consumer research will be possible. This consumer exposure may well be a step in the- -developmer.t process; rather than- a go-nogofinal checkpoint. Within- the next two weeks -Manuffacturing- will let m,rketing know when a schedule of steps, t:imes--a.nd costs to produce enriched nicotine product wi l l be- ready. Reduced CO -- Work on this p roject -is on a hold due to the 'Lack of specific leads. However, during the next two :noritha R&D will forward a report on the current status of Lorillard CO reduction work._ New Brands Spring Lights - Consumer evaluation of two variations (undetectabie- and detectable mint)=wil1 begin in__early May. MRD will coordinate this test with Product Development. All other work is proceeding toward_an August-test market - with success-ful product test results (late June) triggering major spending. 01254872

'?U. Mr. J. -R. Ave - Dr-. A.- W. Spears April (;,- l9"r'7 Thirty Pack -- -The concept-product test (b5/100mm, soft/box _pack) has just bequn. - Results in -ear_ly May- will cEontrol-maciAr.ery -puYch.ase. Marketing work has begun - tarqeted-toward an Auaust-test market. Establis::ed Dran ds Kent - Favorabie:results from the KGL 100 2roduct-test_were reviewed. National introduction wi l 1 begi-n--in May. Mie.ronite II product is now being produced for- national distrib- ution. This will reach retail this summer. TRUE - A consumer research- plan tias been developed for the sequential evaluation of 8 mg. tar TRUE l0D's (current and improved taste) vs. eurrent-ploduct. MRD will forward a sumsmary of this research -plan to R&D. Research will bcgin in June. OGF ' - Work will_Font-inue toward developing a stronger-tasting; better balanced__$5mm_ GGF product. - This product improvement is - based on both internal and consumer evaluations of the OGF product. Marketing will shADrtly forward a draft project request_- to R&D. (The-'_•ocse packing proble3n' should be- eliminatcd very soon-- since_a1l_OGF-product will_be made_on Mark 9`s,_ beginnir_g- -hiay 1) . Consumer evaluation of-OGF Liqhts is stili planneci for May -_ leading to-the introduction-Qf this produot-into OGF country- thi-s summer. R&D_ w_ill inform-Marketing of the -status_ of devel- opment work withiin the next two weeks. Chewir.q Tobacc-os - R&D is working to get asubstitu-te- ingredient for saccharine. Marketing- wi 1_1 review this -work -with Legal and- forward guidelines on poGsible substitute ingredients-. When this- - problem -is solvedr- work w-i ll start again on new chewing tobacco --- products. General 1. R&D reviewed an important, upeoming--pro-blcm -_T&h levels of _ all Lorillard air-diluted brands-will move-upward over-the _ next several veare unless we choose to change groducts; which would reduce taste. -Thi_s is due to chan9-i_ng tobacco crops. The PD(C's concensus was that maintaining-product taste is generally more important than maintaining tar levels;- though this may-vary by-brandd-. It was agreed that: a) Marketing wi11 continue to evaluate this question, and; 432541873 ~ M

TG: Mr. J. R. -Ave -Apri l 6, 1977 Dr. A: W.-Spears b) R&D w•ill-project_T&N changes in both Lorillard and c-ompetitive products a-s soon as- possible. This- may- present an immediate- - problem for- brands° suc:h- as KGL_-and TRL'E. - Thus, Marketing - - will take--particular -oare to ci~e-ck a.ny T&N related a~-dverti-si ng with RoD. : Development af-new taste_-profile attri-butes is proceeding well, -and should_be.-=cempie-ted- wit-hin-the next-several months. - R&D 3greed- to_for_ward speci.fic_=taste profile and-_physical/ chemical e_valS~ations--t~~-Ma.rketing- aa soon as- they are done -- before consumer product evaluacior.s are begur,. ThesA Lorillard evaluations will soon be forwarded on-Newtort Lights, SpL-ing- Lights and Thirty Pack. _ 3. _ R&D- has completed adraft- of-_ the technical review. µ3ithin the next mont ;,- Marketing- will suggest -tt-ie best way to broadly communicate-this--;nformation. 4. MRD reviewed-the possible uses of a consumer-panei for product- - evaluat-ien, Potential uses -include: a)- Brand-based- evaluations,_ e.g.-OGF Lights; b) Product development uses,-e.-g. evaluation of new crop triggered blend changes, and; cy MRD development uses, -e.g. improvement of pr-oduct attribuLe terminology. MRD will summarize;specify=possibilities and constraints of this research panel - and-then get -inptzt- on spee-ific use s . 5. The PDC agreed that-increasing freshness of 4's pack samples - is an important praject. Exploratory work will continue to - be done by Quality Controi, R&D and-Engineering.- 6._ Lorillard st.ouid have- the capability to plsce sel-lin gmessages into_the botton of cigarette cartons within the next 3-6 months. 7. Evaluation of--competitors- will be an important addition to- the redone 5 Year Plan. Thus R&D will- begi-n to think about_ the relative product development capabilities of all major-cig- arette manufacturers. Please let me know if you have-any-questions or_-comments-. -01254874 RES,/bt Attachment E ~ i +

cc: Messrs. C. 11: I-I.- Judge J~- Bass -- T-. - E:. ,7. R. Mau - Mueller W. J.- L _ ,..- Loyle- G. -Fli_nn Gordon II. J,. F. J. C. W. Mir.neraeyer Schultz cl Toti Ms. J. A. M3- J. Howley B. Hudson A=--Kayiatas B. Vi la C. L. Tucker C. B-. Welborn

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