BROWN & WILLIAMSON TOBACCO CORPORATION RESEARCH & DEVELOPMENT INTERNAL CORRESPONDENCE TO: M. L. Reynolds C. J. P. de Siqueira R. Binns P. DuMi E. Kausch R. E. T. E. Rittershaus J. Thompson -9 OCT R. Thornton CC: A. Heard (w/o attachment) FROM: L. C. Owen DATE: October 5, 1987 SUBJECT: ADDITIONAL (R:P.~FORMATION/693 Alan asked that we distribute the attached information to you for addition to your RPG binder. ~LC /lco 00750 Attachment CD r"i CD CD CD 01, N) BATCo document for Province of British Columbia 26 October 1999 R&D RESOURCES DISTRIBUTION OF EFFORT IN TERMS OF SCOPE 1988 (1987 In brackets) 38.0 (39.0)% I 62.0 (61.0)% LOCAL GROUP MAN YEARS % GROUP 176.7.(133.2) 62.0 (61.0) LOCAL 108.5 (85.0) 38.0 (39.0) TOTAL 285.2 (218.2) 100 ALL PROJECTS 7 E N) CD CD CD 0 \ BATCo document for Province of British Columbia 26 October 1999 7) .U 5 z N 00' 04 (0 CM 0 r- a N U) 0 CM co Go Cn J:L CD c) C.) C17 C13 tr) 0 0) C14 0 1- I- CO 0) 0 P.- (0 0 CM I- r- I-- co (0 CO M C4 CI CI C4 co M 0 0 N C) c0 N - w V N CO) CO) r- -e Ln C.) co V c0 0 0 Cq N Ln co r-. w 0 t0 0 't C') C-4 c) dC z j3 A 4 N 4 .4 x U) 2 Z I- It -C 0 W (3 41. CD CD G\ BATCo document for Province of British Columbia 26 October 1999 -6 R&D RESOURCES DISTRIBUTION OF RELATIVE EFFORT IN TERMS OF OBJECTIVE AND ORGANISATION ~~4-. C WILLS AUSTRALIA 198711988 cr,,, ': SOUZA CRUZ tt ITL CANADA BAT GERMANY BAT UKE R&D RELATIVE B&w EFFORT 100- M= s0- 4 60- 3 'z 40- z 20- 0 Suej PHYS COST SOCIAL NOVEL ALTER AGRO LEVEL REGL ASSOC MON GROUP PROJECTS C_- N) CD CD C~ ON Ln BATCo document for Province of British Columbia 26 October 1999 R&D RESOURCES DISTRIBUTION OF RELATIVE EFFORT IN TERMS OF ORGANISATION AND OBJECTIVE NON SPECIFIC ASSOCIATION 9 REGULATORY 1987/1988 *LEVELS 1 AGROTECHNOLOGY (- ALTERNATIVE S-NOVELTY 4 SOCIAL RELATIVE I COST EFFORT 2 PHYSICAL M I SUBJECTIVE 10 c, -7 so- E, 5- 4- 60- C:- 3 3 40- 20- 0 E&W BATUKE SAT ITL SOUZA WILLS R&D GERMANY CANADA CRUZ GROUP PROJECTS 1/6 1. 5) 0%o 0(2.2)% CZ) CD CD 0 BATCo document for Province of British Columbia 26 October 1999 GROUP PROJECTS 5- R&D RESOURCES DISTRIBUTION OF RELATIVE EFFORT IN TERMS OF DEPTH AND ORGANISATION 1987/1988 r- WILLS AUSTRALIA 5 SOUZA CRUZ ITL CANADA BAT GERMANY BAT UKE R&D RELATIVE B&W EFFORT 100. so- -7- so- 40- 20- 0 FUNDAMENTAL APPLIED/ SUPPORT DEVELOPMENT GROUP PROJECTS 41-- C) (Z) N) C) C) C) 0 \ co BATCo document for Province of British Columbia 26 October 1999 L4 R&D RESO URCES DISTRIBUTION IN TERMS OF ORGANISATION AND DEPTH MAN YEARS To- FUNDAMENTAL APPLIED/DEVELOPMENT SUPPORT 5 1987/1988 40- 30- 20- F 10- r A _ E T 0 RELATIVE EFFORT 1001(%) 5 80- A~ A 6 60- A A 40- F F 20. r F- 7 F 0 B&W SATUKE BAT I I L SOUZA WILLS R&D GER- CANADA CRUZ MANY GROUP PROJECTS C:) CD BATCo document for Province of British Columbia 26 October 1999 R&D RESOURCES DISTRIBUTION OF -EFFORT IN TERMS OF DEPTH 1 1988 (1987 In brackets) FUNDAMENTAL APPLIED/ DEVELOPMENT .4 p" 24 ~ SUPPORT 2 (18.6)% 57.3 (59-8)% 20.3 (21.6)% ALL PROJECTS Fa 3,5*2 N(2 _.I)% Im 29.1 ( 9 6.2 6.2 (8.5)% 58.6 (62.4)%, GROUP PROJECTS i A~, 4, C) CD CD BATCo document for Province of BritiSh Columbia 26 October 1999 R&D RESOURCES DISTRIBUTION OF ABSOLUTE EFFORT IN TERMS OF ORGANISATION AND SCOPE LOCAL PROJECTS GROUP PROJECTS 1987/1988 MAN YEARS 100. 80- L 60- L L 40- 20- L L L 0 B&W BATUKE BAT ITL SOUZA WILLS R&D GERMANY CANADA CRUZ ALL PROJECTS BATCo document for Province of British Columbia 26 October 1999 CO-ORDINATION OF R&D REVIEW OF CONSEQUENCE OF CHANGE TO DECENTRALISATION OF R&D. 1. INTERACTION OF R&D CENTRES HAS IMPROVED (I) PROGRAMMES ARE STANDARDISED IN FORMAT AND ACCESSIBLE VIA DATA-BANK, (II) PROGRESS REPORTING IS IMPROVING - USING COMPUTERISED INFORMATION SYSTEM, (III) TECHNICAL SPECIALIST MEETINGS HAVE BEEN GIVEN HIGHER PROFILE, (IV) RESEARCH HEADS MEETINGS/CONFERENCE NOW CONSIDER ISSUES OF BRAND GROUP IMPORTANCE, (V) THE SRG HAS BEEN SET UP TO ENSURE A GROUP-WIDE APPROACH TO S&H ISSUES, AND A SPECIALIST RECRUITED. 2. R&D TOTAL EFFORT IN GROUP HAS REDUCED, 3. FUNDAMENTAL RESEARCH IN PARTICULAR HAS REDUCED - INDIVIDUAL CENTRES HAVE TO CHANGE EMPHASIS IN RESPONSE TO LOCAL PRESSURES, 4. WHEREAS EACH CENTRE IS WILLING TO SHARE ITS R&D FINDINGS WITH OTHER CENTRES, WITH THE EXCEPTION OF UK AND BRAZIL NO WORK IS UNDERTAKEN ON BEHALF OF THE GROQF~, 5, IN SUMMARY, APPLICATION OF R&D IS RELATIVELY HEALTHY (IN TERMS OF INNOVATORY PRODUCTS/PROCESSES, ATTENTION TO QUALITY/COST ISSUES - BUT LONG TERM ISSUES) ARE GETTING LESS ATTENTION, BATCo document for Province of British Columbia 26 October 1999 . &OLE OF CO-ORDINATOR (SELF-DEFINED!)- 1. TO ENCOURAGE FORMATION OF A STRONGER 'TEAM' OF R&D DIRECTORS TO MAXIMISE INTERACTIONS BETWEEN CENTRES ( - MANAGEMENT CHANGES HAVE SINCE OCCURRED), 2. TO IDENTIFY COMMON BUSINESS OBJECTIVES AND TO STANDARDISE R&D PROGRAMME FORMAT/ REPORT ING SYSTEMS. 3. TO VISIT R&D CENTRES TO REVIEW ACTIVITIES, IDENTIFY PROBLEMS, AREAS OF SPECIAL EXPERTISE, POTENTIAL OVERLAP ETC, AND DISCUSS GROUP R&D POSITION WITH LOCAL CHAIRMAN, REPORT (USUALLY) TO TERRITORIAL DIRECTOR, 4. TO ADVISE SENIOR BAT MANAGEMENT ON POLICY ISSUES IN RELATION TO R&D ORGANISATION AND MAJOR TECHNICAL ISSUES, TOBACCO STRATEGY GROUP CAC CONFERENCE ULTRASLIM CONFERENCE ISO/CORESTA STRATEGY (WITH OTHERS) - BARCLAY - SIDESTREAM SMOKELESS CIGARETTES SPECIAL PROJECTS (E.G. TOBACCO BIOTECHNOLOGY), BATCo document for Province of British Columbia 26 October 1999 BIOLOGICAL ANO SIOESTREAM PROPERTIES OF LOW 141( SUMMARY gIRCUMFERENCE CIGARETTES (1) Biological Testing Regulatory bodies are expressing Interest in tar quality (including possible biological indices of smoke) but have no satisfactory basis for such a description of products. 2. The Ames Test, based on bacterial mutagenesis, has a recognised value for screening single chemicals as a prelude to furth,:r toxicological testing. For tobacco smoke condensate, a complex mixture, the results are of uncertain meaning and caution is needed In interpreting results. The test Is less reliable and easy to use compared with tests used for measuring other cigarette parameters. 3. Although Intended, and mainly used, as a test for chemicals, it is used by some industries (notabl3r oil and automotive) for comparative ranking accepting that all products score a positive result. Again this testing Is done as a prelude to other toxicological testing. 4. The professional toxicologist's view of biological indices would be to consider them in terms of implication for human health. Whilst as yet there are no tests which are deemed firm predictors of human health they would wish to see at least the following sequence of testing on comparative products for any meaningful conclusion to be drawn: (I) chemical data I I Ames Test I I chromosome damage test (iv) short term animal test (e.g. smoke inhalation by rats) Any attempt to rank products simply by Ames activity would have no scientific credibility whether Initiated by industry, Government or independent toxicologists. I I Biological Test results on cigarette condensate The majority of testing of cigarette design features for biological activity has been based on the Ames Test but we also have results from mouse-skin painting and rat inhalation from internal and external studies. There is no simple correlation of findings from these different tests - sometimes results are in diametrically opposed directions; other times they are in general agreement. rQ C-D BATCo document for Province of British Columbia 26 October 1999 2. Important factors capable of reducing Ames activity include lower circumference. flue-cured blends, expanded tobacco and reconstituted sheet. 3. Factors leading to increased Ames activity include burley tobacco and ventilation. 4. For a given style of product - particularly in terms of blend type and ventilation - Ames specific activity (i.e. expressed per gram of condensate) will be lowered if circumference Is reduced. Furthermore, for comparable delivery products of similar style overall "biological dose- per cigarette will be lowered. 5. The circumference effect is well demonstrated in systematic studies on cigarettes (of fixed blend and other design parameters) using Ames activity, mouse-skin painting and a "lung enzyme- test. 6. Capri, as currently constructed (with US blend and high ventilation) is not optimised for Ames activity and consequently does not separate as distinctly from other US brands as it might if this were a specific objective. 7. If ever we sought to launch Capri or any other ultra-slim on a biological platform this would have to be on the basis of either: ( I ) lowest on a given market or I I ) low relative to that market average Comparison between markets is likely to cause controversy since the difference in Ames activity of US and Virginia cigarettes is marked (in fact, it is in the opposite direction to the result from mouse-skin testing so there Is no clear direction to pursue!). 8. Returning to Capri, on the basis of professional toxicologists' views in regard to the use of Ames activity results In Isolation, there is no case for changing the construction of this cigarette at this point. 9. If biological test results are to be used as a base for claims related to human health, we must await scientific progress in the evolution of tests that are viewed by experts as reliable, firm predictors. This seems some way off. In the interim, we should develop within research ultra-slim products that are optimised for Ames activity and subject these to the full current range of biological tests (and to improved tests as they come available). 10. If, however, we wish to be prepared for commercial competition on the basis of current rather dubious tests, we should seek to develop commercially viable ultra slim products incorporating the other factors that reduce Ames activity where this is easily achievable. C__ C BATCo document for Province of British Columbia 26 October 1999 (I I I) Sides t ream Reduction 1. Attempts to produce low sidestresm products have followed one of two routes: . ) reduction of visible plume via paper modifications b) reduction of cocal sidestrea. emissions (tar and gases) through reducing the weight of cobacco burned per cigarette. 2. The special papers designed for visible plume reduction have so far failed due to unsatisfaccory smoke quality (off-taste) and have a minor concern over sidestream Ames actIwiEy. They do, however, give visible sidestream reductions of ca. 50% but offer no reduction in sidestream carbon monoxide or ocher "gases-. These factors combine to account for the commercial failure of such products (e.g. Passport) to date. 3. Factors influencing the second approach, i.e. weight reduction, are: - a) cigarette rod dimensions (length, circumference, density) b) blend composition (particularly content of lamina and expanded tobacco) This method has the benefit of yielding all-round reductions in sidestream emissions i.e. including carbon monoxide and ocher "gases'. 4. The limited US brand survey shows that for all the high puff number products (cs. 9) Capri is the lowest with a sidestream tar of 20 against a mean of 29 for regular circumference products. Doral, selected because of its abnormally low rod weight due to high expanded tobacco usage. also has a low sidestream tar of 21 but puff number is down to 6.8. 5. A survey of annoyance factors associated with sIdestream smoke (eyes , throat and nasal irri. cations , aroma and haze) in which Capri was compared with Marlboro Box and Doral showed very significant improvements for Capri. 17) Implications for Commercial Action on Sidestream reducElon 1. Assuming no further development of the existing product and , subject to a check of data for the remaining leading US brands, we could claim chat Capri is lower than normal cigarettes (by a third). We should not claim to be the lowest in sidestream since nonsense products undercutting Capri could always be introduced. 2. A survey of leading brands (and those known to have exceptionally low tobacco weight) for all countries in which Capri or its derivacives are to be launched should be conducted. Measurements should include sidestream tar, gases and annoyance factor ratings. 3. Since no standard methods exist for the measurement of sidestream we should take all steps to have the BAT BATCo document for Province of British Columbia 26 October 1999