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Product Design

the New Camel Exotic Blends - Cinnzabar, Izmir Stinger, Basma.

Date: 23 Aug 2000
Length: 6 pages
522609991-522609996
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Hypothesis
Candy-like flavors (Flavor technologies targeting youth)
Unique flavor technologies, particularly those developed or introduced post-MSA, which alter smoke chemistry or delivery and are appealing to youth or other at-risk populations.
Brand
Camel
Eclipse

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Page 1: rpc50d00
REGULATORYITAXISSUES • CML - and the direct sales it offers - complies fully with both the letter and the spirit of the MSA. . There are a variety of laws, which vary from state to state, regarding direct sales and the types of licenses required to conduct direct sales. RJRT is abiding by all applicable regulations and we have received or have applied for the appropriate licenses to offer cigarette and merchandise sales to adult smokers across the country. • All applicable federal, state and local taxes are being collected on orders placed through CML. (As info, shipping and handling is $4.00 for orders up to $30.00 and free for orders that are more than $30.00) How many exotic blends are being sold? Seven blends have been created, however, Rare is only sold when the exotic tobaccos needed for its blend are available which is October to February each year. ### Contact: Ellen Matthews 336.741.6694
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1. Are the Camel Exotic Blends similar to bidis? • No. Reynolds Tobacco does not manufacture bidis. • The Camel Exotic Blends are standard cigarettes that use rare tobaccos and flavorful spices to complement the brand's Turkish and domestic blend. • These products are only available through CML to smokers who are age-verified to be 21 years of age or older. • As with all RJRT brands, Camel Exotic Blends carry the Surgeon General's Warning on every package. IF ASKED FOR A DESCRIPTION OF BIDIS: • Bidis, which are imported from India, are about half the diameter of regular cigarettes and rolled in tendu (Indian ebony leaves). Bidis typically cost less than standard cigarettes and most packages do not carry a health warning. 2. Critics say that "flavored" cigarettes have youth appeal. How do you respond? • Camel Exotic Blends were developed for and tested with adult smokers, who told us they liked the taste of the rare tobaccos and flavorful spices used to complement the brand's Turkish and domestic blend. • Across many product categories, there is a demand by adult consumers for differentiated products that offer a variety of flavors. The marketplace explosion of flavored coffee beans, which used to be offered only in gourmet food shops and are now sold in almost every corner grocery store, is just one example. Another is the growth of flavored beers (from peaches and cream to raspberry to blueberry), which used to be made only by microbreweries and are now being produced and sold by major bottlers. • The bottom line is that kids should not smoke, and we do not have any marketing programs designed to encourage underage persons to smoke, non-smokers to start smoking, former smokers to begin smoking again, or to increase smoking in general.
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DIRECT MAIL ISSUES Youth access: • R.J. Reynolds Tobacco Company carefully restricts its brand-marketing mailing list, communicating only to smokers age 21 or older who have certified they want to receive such materials. We believe that having strict controls on direct-mail is vital because we sell an age-restricted product associated with serious health risks. We don't want to send direct-mail marketing materials to youth, to non-smokers, or to adult smokers who just don't want to get brand mail from us. • No one will be added to our mailing list unless they ask to be, and they can successfully pass through a system of eligibility controls. « If questioned, provide mailing list safeguards document.>> . In addition to RJRT's stringent safeguards to keep youth off our mailing lists, the company has long supported two youth non-smoking programs. "Right Decisions, Right Now," established in 1991, is an in-school curriculum designed to teach students how to resists peer pressure. RJRT is also a part of the coalition that supports "We Card," a retail program aimed at making sure that laws regarding minimum-age for purchasing cigarettes are enforces. It includes training programs for retail employees, and materials posted at retail regarding laws on minimum-age for purchasing cigarettes. TRADEISSUES Impact of direct sales on the trade: • Mail-order sales of Camel Exotic blends through CML should have minimal, if any, impact on the trade's (wholesalers and retailers) cigarette sales because: • Camel Exotic Blends, being produced in limited quantities, are not meant to replace adult smokers' usual brand style and CML does not offer Camel's base styles for mail-order purchases. • These specialty cigarettes are being sold at a premium price ($6.00/tin) - much higher than typical retail prices for base Camel styles. (The current average per-pack price for full-price brands is $2.96.) • Retailers that continue to carry a full range of brands and styles will have a competitive advantage over other accounts.
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. The New Camel Exotic Blends - Cinnzabar, Izmir Stinger, Basma August 23, 2000 Overview In August 2000, Camel introduced 3 new Camel Exotic Blends. The three new blends are: • Cinnzabar: Camel's classic blend is brightened with a touch of cinnamon and spice. Cinnzabar makes for a smoking experience that's warm, spicy and exceptionally smooth. • Izmir Stinger: Camel's Turkish and domestic blend made more sophisticated. Sweet yet tart, Izmir Stinger is the smoothest complement to a highball or your favorite shot. • Basma: Camel's aromatic Turkish and domestic blend is complemented by the addition of the most prized of Turkish tobaccos - basma leaf. Basma leaf creates a spicy smoke with delicously smooth, woodsy undertones. The original Camel Exotic Blends include: • Samsun A premium cigarette that features an extremely delicate and fragrant Turkish leaf - Samsun - that offers an exotic yet mellow flavor. • Crema By adding a hint of vanilla to our unique blend, Camel Crema has a creamy, indulgent flavor that offers an intriguing and pleasurable smoking experience. • Twist A special version of Camel's Turkish and domestic blend, this exotic blend introduces a splash of citrus flavor to offer a uniquely refreshing taste. • Rare By rolling the top 1 percent of the finest quality tobaccos, this special reserve offers a smoking experience that is extraordinarily smooth and mellow, yet delightfully flavorful. Available November through February of every year.
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• Available through CML, Camel's quarterly magalog (magazine and catalog), the specialty blends are packaged in stylish tins with graphics that capture the exotic feel, and premium quality and taste of Camel. Within each tin, inserts describe the flavor of the blends, the heritage of Camel and what makes the unique styles pleasurable to smoke. • Camel's Turkish and domestic blend has been a part of the brand since 1913 - the same year Camel was introduced nationally to American smokers. This blend highlights Camel's rich heritage and exotic nature; reinforces that Turkish tobacco - the smoothest, most aromatic tobacco in the world - is in every Camel cigarette we produce; and that overall, Camels are a pleasure to burn. • Camel Exotic Blends, being produced in limited quantities, are not meant to replace adult smokers' usual brand style. Instead, these specialty cigarettes are intended to complement Camel's Turkish and domestic blend, offer adult smokers additional choices within the Camel brand family and help further differentiate Camel within the marketplace. Differentiating Camel from its competitors • The tobacco category is made up of the most brand loyal customers in the consumer product goods industry. That, coupled with numerous bans and restrictions on cigarette marketing as a result of the Master Settlement Agreement between major U.S. cigarette manufacturers and the state attomeys general, has profoundly changed the cigarette marketplace. Competition, unprecedented price increases and an enormous array of brand- style choices available to adult smokers have complicated the marketplace even more. • To remain competitive in such an environment, it is vital for Reynolds Tobacco brands, like Camel, to differentiate themselves from competitors. The exotic blends help Camel stand out among competitors by offering products and packaging that have never before been available in our category. • New products like the Camel Exotic Blends add to the smoking experience by offering adult smokers something new and different. For Camel smokers who enjoy experiencing new tastes, this unique product offering helps Camel to maintain their brand loyalty, while offering unique styles to adult smokers of competitive brands.
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• CML is in full compliance with the MSA, which prohibits tobacco manufacturers from directly or indirectly targeting kids with advertising, and addresses and resolves the major issues regarding underage smoking and cigarette marketing. The states are now effectively equipped with up to $246 billion dollars over 25 years to design local solutions to address underage smoking and to enforce new rules and severe restrictions on cigarette marketing. The settlement creates a major, multifaceted initiative to reduce youth smoking in the U.S. -- with more resources than ever before applied to youth non-smoking programs in this country. 3. Why is RJRT is selling these products to 21+ smokers when cigarette purchases are legal at 18 in most states? • Focusing our brand communications, including direct-mail activities, on an over-21 audience is simply an additional precaution to distance our brand-marketing efforts from youthful audiences and ensure that we limit direct communications to adult smokers. We strongly believe that cigarettes should not be purchased or smoked by youth, and that cigarette-brand advertising and promotion should only be developed for adult audiences. 4. Are there restrictions on the amount of product an adult smoker can order? • No, not in the current catalog. However, I would point out that: • Camel Exotic Blends, being produced in limited quantities, are not meant to replace adult smokers' usual brand style. • Instead, these specialty cigarettes are intended to complement Camel's Turkish and domestic blend, offer adult smokers additional choices within the Camel brand family and help further differentiate CMUCamel within the marketplace. (CML does not offer Camel's base styles for mail-order purchases.) • In addition, these specialty cigarettes are being sold at a premium price ($6.00/tin) - much higher than typical retail prices for base Camel styles. (The current average per-pack price for full-price brands is $2.96.) 5. Is this the first time RJRT has sold cigarettes directly to smokers? • No. In response to consumer requests, RJR is currently selling Eclipse - a cigarette that primarily heats rather than bums tobacco resulting in an 80-percent reduction in second-hand smoke - to a limited number age-verified adult smokers through a test market.

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