TOBACCO STRATEGY REVIEW TEAM UK INTERNATIONAL BRANDS REVIEW OF 1991 SUMMARY UNIT: MILLIONS 1990 1991 % VAR 1991 % VAR vs HOUSE ACTUAL ACTUAL Vs 1990 BUDGET BUDGET B&H 18,933 18,182 -4.0 19,871 -8.5 SE 555 12,387 15,863 +28.0 14,527 +9.2 PGL 7,933 8,904 +12-2 8,649 +2.9 JPS 2,024 2,129 +5.2 2,642 -19.4 TOTAL 41,277 1 45,078 +9.2 45,689 -1.3 PERFORMANCE UKIB sales in 1991 were 9.2% ahead of the previous year with a good fourth quarter contributing to this growth. The shortfall against budget narrowed in the last quarter to give an annual performance of -1.3%. BENSON & HEDGES sales declined by 4% while sales were 8.5% below budget. Poor market performances in Australia and Malaysia, together with depressed sales in West Africa were the key reasons for this. However, the progress of the Special Mild version in South Africa continued. The gold pack strategy for all variants together with the possible updating of the paren~in hand, while the new 'owning gold' advertising proposition has been developed and accepted in the core B&H markets. STATE EXPRESS had another year of explosive growth with Hong Kong exports being the key. Elsewhere, progress was made in Bangladesh, Indonesia and Malaysia. The pack range redesign to achieve a family appearance is underway with research scheduled for Q2 1992. New creative executions are underway around two new themes of balance, smoothness and satisfaction. GOLD LEAF made good progress during 1991 with sales ahead of the previous year by 12.2% and ahead of budget by 2.9%. Growth occurred in Sri-Lanka, Bangladesh and Zaire, but there was a softening of Sales in Nigeria and a decline in Camaroon. Export volume was progressive particularly in the Middle East and Africa. Clear plans for 1992 have been established with regard to a new advertising campaign, product quality, line extension pack designs and the extension of the brand into new markets. pmb/tsrt4.92 C-3 00 CD BATCo document for Province of BritiSh Columbia 25 October 1999 JPS, although below budget for the year, increased sales by 5.2%. As a low price brand, progress was achieved in Malaysia, while sales also grew in Australia, and Cyprus. Although export sales of the Virginia version declined significantly, there was some growth of the USB version in the Far E=. pmb/tsrt4.92 N-) (-n 00 Un BATCo document for Province of BritiSh Columbia 25 October 1999