SAT PLANNING DEPT TEL: 071-222-8179 22.Sep.92
11:22 No.001 P.
t4 O COPIES MAY 13F. MADF SECRET
Tobacco St rwozy Grotto
A meeting of the Tobacco Sum(egy Group was held on
77hursday 3rd September, 1992.
Present: Mr. U. G. V. Herter. Mr. D.P. Allvey, Mr.
B.D. Brwnley,
Mr. A. Monteirc, de C2scro. Mr. R.I. Pri(ch2rd,
Mr. T.E. Sandefur,
Dr. B. Schweitzer, Miss H.C. Barturi (Secretary).
Mr. E.E. Kohrhorst was present throughout the
meeting, Mr. S.P. Chalfen was
piesent Nr itcnis 48 and .49, aod Mr. D.C.
SlcvCj)S rot' Renis 50 lu 54.
Apologies -ere. rocciyed frorn Mr. Brown of
Imasco.
~,finittes of the Previous Nfeetim!/)Tntters
Arisim!
1. Mr. I-Icricr wclcomcd the mci-,bcr3 to the
first mccling of the rcnwned Tobacco
Strategy Group, particularly me new members Mr.
Allvey and Dr. Schweitzer. The
matters arising not othervise included in the
Agenda were discussed.
2. Conrerence on Sales and Disiribulloil : A
possible Conrcencc on Sales and
Distribution was discusscd. It %~as i!reed that,
since this is a straL%ic issue. conditions
2.re chang,'nG quickly, ind there are wide
differences between the markets, a. high level
cunrcicm.;c with a Umi(cd numbur of purticipun(s
In the Spring of 1993 would be
valuable. Mr. de Castro wiU ask W. Andrnde to
draft a proposal for a conferencz
concentrzting on strategic issues but. not
ignoring the benefits that may be obL-ined from
covC.-ing opeaticnal issuc_-. "JI . Andi-ade will
dia%v 00 dic e.;pcrLi~t: ur a 4ruup
including Mr. Nederrrilim, Air. Fitzinaurice and a
BATCF dc!vale to be adyisOd by
nr. 7.-.p pro~)Ql will be disc-t)sse_d at the next
TISG mc~Tting on 2rd
DCC-'b-.
3- FxcL~p ! Mr. TlLrl,~r ~.1, i,kci 'Nfr.
Rinplinin in p-pire. I strrlogy on Fwiw.,
which can bc uscd in d:scis2ion -~iih diffcc-it
Gcvcrnmcnts, to be discu3scd at the next
TSG meet-llng.
4. Nc- Nfrirkc!s Nf.cting : A dntc for the ncxt
N%:-,v Nfarkcts mcc--ing will be dijc-j3.,cd
with the Chairm--i or -.,, the !aicst at the next
TSG mecting.
Nfarketina
5. Dr-and Valuntion : Mr. Brinfley reported that
the BATCo document on Brard
VaJwation would be publidied by the end of
S~ptcnibcr. A BATCo seninar is bc~ng
arrunged rur key Nfarkcting ;ind Finance staff in
early October In order to Implement this
new fool in the larzer companics. It was aprccd
(hot one Marketing and one Finance
reprcscn(ative from each of Brown & Williamson,
BATCF and SOU22 Cruz would be
in,,olved in that mccling so that ilicy can
introduce the methodology in parallcl with
BATCo. This snould enable it to be applied to all
key brands in key countries in 1~91
k1 r. nranajy will cjinrrin Iiie. cimp. or the.
mcorina the. weo.lc enminencine 7(h
Scplcnibcr.
Ln
U_.
--I
Co
01%
I'D
I'D
BATCO CONFIDENTIAL - CATEGORY 1: INITNNESOTA
TOBACCO LITIGATION.
BATCo document for Province of British Columbia 25
October 1999


SAT PLANNING DEPT TEL: 071-222-8179 22.Sep.92
11:22 No-001 P.
6. Competitor Cost Model, Ai3alysis and Actl~;ly :
Mr. All~ey expWned that the CPC
had rtquntcd a pcisVcctive on the main tobacco
compttiluts, whicli would
require an understandiniz of their whole busincss.
The -concept of a model' was a
common approach to valysing competitors. Brown &
Williamson already hive a model
ofthe Impact of price increases on Philip Morris'
resulLs which they use as input to their
own pricing decisions, and 8A*I'Co use similax
models. Mr. Eckinann's paper was a
use(ul sumninry of thr ;nrnrmitinn and analysis
rimled by market. A view will then he
needed of how the corporate ccnircs will rcact.
This will require knowledge of the
organisations and personalities. Mr. Allvey wiU
w-ordinate the production of a paper
to be rliscir-,-rA at the next Tsn to %ra otit the
rormat, frequency and crivemee of an
annual competitor review, as part of the planning
cycle, with quarterly updoics, for
example, covering product launches. He will
Involve Mr. Eckmann, Mr. Dbighnm,
and sinii!ar sLaff from the other companies. It
was agreed that JTI should be added to
the comp-titors to bi! --nalyced by Prown &
W;Illatnson.
7. Fr-ance : The comptiltive siluition in France
and the strategy of Scita, in France, the
rezt of Europe and Arrica, were discussed. It wzs
agreed that in view of the size and
impurtatict of the Frt:;ich murket. in thu midd:c,
ur Eurupc and BAT'3 lack. ur SULCess
therc, Mr. Brainley would ask Mr. Renibtszewskl to
reassess our approach to Franc:
and to propose for the next TSG meeting 2
strniegy.
8. Getininy : SATCF hxie a cmitingcricy plan in
the event that a pr:c-- war is initi~lcd by
another c-Impetilor. 7he fetr is that a competilor
such as Rot~m;kns may irt~rc-diice
che.apcr b,-.%nds. Ret:--tsina is unlikely to
initiatc!ower prices since their low prict brand
has the hVest market share and is progressive, but
they would probably follow if prices
were. Tr nt~- cnmp:inir--, misr. thim mieht wrl'
encritirnpe the current
do~n-trading to tobac:o rolls and promote, an
increase in border trade which 3cII for
about hall.' pfcc. The same pressures are limiting
BATCF's abillty to increzse prices.
P%ilip appears %so be under considerable pressure
for profit and thus seems to be
likely to ~nnt to pu!h. its prices hig~,er.
9. Br-nzil : 7`e Go,ern,---~:~L's de---ision 'to
merge price cztegories IFT and IV is exce!lent for
Souza C.,-;z since they -,ill not need to lower
thelt- prices and L&-,If !oses its ad,)anLZgo--.
Philip are thre~,.:--ning to site the Brazfli;in
g(JVCMMC.'1[ UVer the dmiiiun. '17he
price catczories could di&ippear within 3 to 6
imonths. Sotiza Cruz have contingency
pla"s for -;s, inc!udlng lnunc~ing Viceroy rrorn
Brown & Williamson. Mr. Er-arulcy
cuizijnciitc--~ thut L&M npp~,us tu bc bt:%;uming
?hMI) Nfui i is' luw pi iQc Ut and !it U- Gn
- America, 1~1:dclle East, japan and China. Mr. de
Castro re,,,orled a rumour 'that R.J.
Reyncids ~-e thinking cr returning :o Graii].
10. JTI : Nllr. Bnainley rcpoitcd that JTI give
thrm reasons for t,~eir purchase of
Nfanches:e: Tobaccw- experience. with Virginia:
opporainifies for own Inhel in Furnpe.,
and the rc!at-'Yc case of exportlng to Tai,an
froin UK railicr than JaFan. They are also
PCgOli3ting with H.J. Feynolds to licc.-ice
brands.
11. IsitcrtintlonnI Cigni-cf1c NInt-hoi,ig
ii,rornintlon Systcyn - Nfr. 13rainley reported
that
The deve!c;ment Is complete, a pilot is no%v
running, Find it should go live In early
Octobcr.
Lrl
c0
C:)
BATCO CONFTDENTIAL - CATEGORY LMINNESOTA TOBACCO
LITIGATION.
BATCo document for Province of BritiSh Columbia 25
October 1999


SAT PLANNING DEPT TEL: 071-222-8179 22.Sep.92
11:22 No.001 P.
12. 90(h Anniversary Tobacco Confcrcricc r Most
guc3ts havc acccptcd their invitations.
All speakers are aware or their topics. Miss Black
will communicate a common format
for slides.
Key Nfarkefs
113. Fxporls to Central/Eastern Europe : Dr.
Schweitzer rej>oried that sales are nearly
t1 vubit. thu-%c rur [lie saint: i;x:riud last
year. In the year to the end of July, ft hIghmst
sales are to Romania. This will change in August
due to high shipments from RATCF
(700 million) and Brown & Williamson (250 million)
to Russia. Orders currently
c.xcced pioductiun capability (inanning) in BATCF.
Bruwn & Williarnsun have order-$
awaiting money. Souza Cruz have received money for
250 million cigarettes for Russia
and Ukraine, and have. a Iecte%r of credit for 250
million more.
14. Mr. Heller naised [lie issue of brands and
priccs in these new markets. He pointed out
thit our export =rgins ire poing down and
stigge--fM that we are pricing too low at the
low cnd of thc market. It was cstabli3hcd that a
varicty of brand3 is being sold at prices
ranging froin S9 to $27, with the bulk at S15. In
some cases the sanie agent is dealing
with threz- or more BAT companics and is able to
play them off 2eainqt one another. It
was agreed that the brands offered would be
rcstrictcd to State rxprc3s at,~27.50, Kcrit
at $20, H13, Pall MaJI and Lucky Strike at $15,
and Hollywood and Viceroy at about
$10. This list may be further restricted when the
imark-cts are more developed. It was
agreed that BAT c4onlicts with one agent should be
funnefled through one BAT
ruprment;iiive. The, suniur Operating G.,oup
managers, Mr. 'Miltellair, Mr. Tomnt,
Mr. Perelm and Mr. Rembiszewski, already meet
quarterly. Mr. Her-ter wi.11 ask
them, -at their next mceling, to dra,v up a plan
for Central and Eastern Europe, covering
br;uids, prices and advej-tis;i1g, ajid tu
i-,t:unijnci;d llic urg,wisualuri rrquirtLI [u
inake the
above gujdclircs work.
15. Group organz5ation ror 1zu_s5;., : Mr. Herter
r~por-cd that the =Its orrict- in Moscow
mainly covered ~he Nloscc,- regicn, ;~nd :,lie
counir-y ;s so vast that morc of.'ices would
be needed. It ~,as ngreed th;it SAT shoold have
one or3anisation 'n Russia which should
expand a3 quickly as possible. Mr. Ire:-Icr will
ask- 'Nfr. Tumat and Nfr. Nfacdonald to
propose a plan 'or mis.
16. Nc%v- Nfnrl(cts : \1r. 11'eticr rcporicd on,
~.he pregrc3s madc with rcsFoct to nc-.y rnarkcts.
17 Uniguay : W. de Cii~;fro rcporlcd he cxpe-z!s
in (lie near rulure a report from
Citibaiik on a mi:jor tobacco compnny :n Urugtiay.
18. Cuba : NIr. de Cnstro will visit Cuba in
Sepic-riber to establish Unks with the
monopoly. A similar approach had beci rnlde by
Philip Morris, but tochnicin'tis from
Cuba had no( been granted visas to visit Philip
NforrlS In the US.
19. Xlercosur - Booz Allcn's final report ;s due
at Souza Cruz on 14th September.
Mr. Heiler, Mr. Dritnicy and Mr. Dunt will be hi
Aigentina on the 14(h, l5th aild
16 th October. Air. Brmiley will agrcc kvilli Mr.
de Castro when will be convenient
for him to corne to Argentina during those three
days for Booz Allen to present their
findings to Ilic whoic. group.
CD
1,11)
Co
BATCO CONFIDENTIAL - CATEGORY I: NITNNESOTA
TOBACCO LITIGATION.
BATCo document for Province of BritiSh Columbia 25
October 1999


BAT PLANNING DEPT TEL: 071-222-8179 22.Sep.92
11:2:1 NO.UV1 v.
4
20. Arrcullua j Mr. Braitilcy rcporlcd a problem
with Pitz undercutting Dcrby In
Argentina. It was agreed that the policy or brands
not being exponed Into domestic
markets without prior consultation with the
regional and loc;~ management on pricing.
birands, and competitive Implications, would be
rainrorced.
21. Philippines : Mr. Pritchard reported on Wks
with the third largest player in the market
(645r. owned by Rothmans, Australia), to contr2ct
manuracture and distribute our
products.
22. rran : Dr. Schweitzer reported that BATCF has
shipped 3.5 billion cigarettes to Tran in
ilic ymir to date wid expect Eu ship wivilict 500
milliusi. The phin rur 1993 is 3 billion.
The Iranian monopoly has approached BAT with a
proposal for a joint venture to
construct a factory capable of producing 20 to 22
billion eigzrcitcs (in a market of 30
billion), kith a 253 to'30% participation for BAT.
r-ports into rr." of S to 8 billion a
year ror 8 years would be inclitdcd in the deal.
23. Andcan Pnct :" Nfr. Dunt i3 inceting Mr. dc
Castro in the, wcck commencing 7th
September to rescive differenCes Of opinion. A
report will be presented to (he next TSG
meeting.
US Trifern.-iticinni Brinds
23. Ment is below budgct beciurz of tho adjustment
in 1-Tong Kong but is up on last year. It
is doing very well In Japan because of Uic box
styles. Mr. Pritchard believes that there
Is a mcssape hcr,; for aH inirkcis, flim boxcs
will coine to pre~omlnile an over the
wor!d. The US Domeso'c market is moving
g to boxes 2nd China is ~.oviri& very quickly.
7-his could bc, an oppor-,uiity for the Group.
Capacirr on the box llne3 Is a major
consL;aint in Brown & NVilliamson. The proposal
for i comb i natlon. s was not enough
and a new proposal will be made 2s quickly as
possible.
13. J-Llckv ~ilrlke has a new gold surdaTd whicn,
Is be!ie-.,e-1 to be b.!!:er than Nlarlboro.
7 `h' price--i nitist nriw he, ~-orknxl tip. Mr.
11-itley ind Mr. Pr4chird will discliss the
co-ordina-tion ofpricc !nc:cucj in China and maZkc
a p.-cpoial to thc '1cXt TSG Mocting.
Mr. Herter asked Mr. P;-:Icl):ird to prepare a
markc,' by market as~essmcnt or pricing
position for the next TS6 meeting. The u.~c of the
IJS and 71tiropean 21civerti.-ing
campz~gns was discussed. Mr. Ilcricr bclicvcs that
c--ch market should use whic~cvc:
campaign sells more cigarettes. It Is not a fre:
cholce as It mus: be one or the two
czmpaigns, M-th the only deviations being 1'cr
langua.-::. The tAo camp,-~gns achieve
br---,d :n!c&-ty by being consis!ont ith one
-ncthr-r, because one :s pack based while
the other Is Image based.
26. Bar-clay : Tfr. Fri(chard reported that the
nizigin for dis(ribution tPrough TiedeinannE
in ZNonvay of $11.261rriflle Is belicved to be
adcquacc. The prob1c.-n is that Lhe effort is
going L-chind Prince. Progress in rrance, is on
hold pc:-.ding the ou:come of Talisman.
A tcst for G,:ri-y ls.bcing prepared for 1993.
Fermula One cponsorship will and at
tfic cnd if 1993.
77. P.-ill NTill : Mr. Pritchns-d will wport in
lhr-. next T.S(". mrcting on the dcvclnpmcntq that
would be ncccssary to makc Pall h1aJI into a
stratcgic corc, brand.
CF1
C:)
r"i
CD
BATCO CONFTDENTIAL - CATEGORY 1: NfINNESOTA
TOBACCO LITIGAT' ON.
BATCO document for Province of BritiSh Columbia 25
October 1999


BAT PLAtMING DEPT TEL: 071-222-8179 22.Sep.92
11:22 No.uuL e.
UK Trifcirrinticirial 13,indi
29. State Express 555 is selling well in China.
More marketing -srend writild be destr2ble
In China but this will be =essed agrunst the below
budyct profit fomast. The
dependence on State Express In China Is still
belng discussed. Mr. Br2mley reported
that BATCo.'s Marketing department believes that
US Tritemational Brands provide
support 2nd that there is no need for anotheir
UY.113. Mr. Herter will discuss tl~3 issue
further with Mr. Brujidey, Mr. Adams and Mr.
Remblszewski following his visit to
the Far East.
29. Benstin & lfcdges has problems in New Zealand
(with (he movement to RYO),
Australia, Nigcria and Malaysia. The quality of
the product is being reviewed.
30. I'layers Cold Lcar ill progrc5s;vc. The
quality ha5 bccn impruvcd aild thcrc 13 nu'W d
major review of the packs, advcrti sing campaigns
and blends.
31. John rlaycr Spcciat is being used tactically,
for cxaniple, as a low price biand in
blalaysia. The brand ownership is compliczted with
Imperial owning it in the EC (and
licensing it to Reerntsma in some mirkct,), and
BAT in r%FTA. *0r. 71rn-ley will ask
Mr. Rcmb;sze, ski to propo3c a 31ratcgy for this
brand for the next TSG mcc-ang.
p N n 4 n ry,-tr to
32. Philip Morris in China : Mr. Brniziley
reporied that Phili f rr,% is n t ex i
introduce a to- price brind in China in the nca.r
futurc. Nfar!boro's 3harc of Imports is
lower than that of State Express. Philip Nforris
Is spcnding hcavily. ne supporT ror
Marlboro In 1992 is b~clieved to be more thnn S20m
which is mor= than BAT will spend
on its four major brands in total. Philip Nforris
has hand problems -kith CMTC and with
counte-'eits. Mr. Brnmley will distribute copies
of BATCo.'s p'aper on the latte.-
subject to the rrc:nbcrs of the TSGi. Mr. Sandefur
believes the loneer term
opportunity in China is for Lucky Strike rallic.-
Lh_-i Kent, Since it :s full navoured. The
111011dy adlecated 1.0 supqoitiii,~; it lia-s
ncvc. bcan ~Lxmi. Mr. 1ft:r1t:r and Mr. Bramley
will re%`-,,.v the -cs-,tion in Hong Kong on 7th
Sc;;c:nbc7.
1101
31. Lorif Trading Profect : Mr. Pritclint-cl %vill
head up a tenm inc!u~ing Mr. Itennerrinn,
Mr. lleasman, Mr. Srio~iden, Mr. lrarrL5on and Mr.
l3rucc-Nliller. The brief wili
include evaluation of the opportunity as %;,e!l as
implemen:a1ion. 7.ne report to the next
TSr, ,rc,-4.e 4i.-I t.ddrr-, qw-slions such as who
are the compe!;!ors, -ho will be the
CUSCOMC:-3, Will :~c fact that BAT ii li~c!v ~o bc
a c-ip-.1ror be a.1 irripcd1mcm, an~
what re!um is expected (their accounts Shaw that
some of the cu.-rtnt compeLitors m2-k-e
low returns).
34. fligl] U:lf C05,S : Mr. de Castro reported
that Brazilian Buricy Is more expensive Lhan
Chile.an because of higher productivity per
hectarc based on irrieation in Chile. The
quality of tho Chilean, leaf ;s close to that of
Brazil;an but it needs to c.-tablish Rself.
Mr. Pritchard recommended thiL the conipwison
should be or In-blend cost rather than
the price to fariners in order (o take account of
the cost of technical support, sorting.
etc. Mr. de Custro will produce fuller cost
numbers on this basis for the next TSG
niecting.
U-1
CID
BATCO CONFTDENTIAL - CATEGORY EMINNESOTA TOBACCO
LITIGAT.ON.
BATCo document for Province of British Columbia 25
October 1999


BAT PLANNING DEPT TEL: 071-222-8179 22.SeP.92
11:~I:d No-UU1 r.
35. Training In blendIng : Mr. Kolinhorst reported
on a meeting of senior blenders who
Identifled the desirable qudities of. qntjrce.,t
nf, and tminine rar fultire blenders. 7-he.
next st.ps are to tomplete the design of the
training programme, assess tho current
blenders and design a training prograinine for
each blender. The assessment is expected
to show that BAT has many blenders at lcve!s I and
2 and very rew at level 4. In view
of the 10 y= time scale to tntin up (o level 4,
there could be a need to recruit
cx -d blunders rrutti competitors or rrom best
prncilce companies such as cofrec
pericncL
and lea companies. One problem has bcci that there
was no career path for blenders
and their importance was not recognised in pay and
status. Mr. KohrLhor-st was asked
to mace a iecominciidaliuti to (fit; next TSG
meeting on how to provide a care-cr and the
right pay and status for blenders.
Smoh,ne 0-..1N(y
.16. Smisking Qiirility Study : k1r. Kolinhumt
reported that Iwo good new products have
been dc-eclopcd &nd extremely YalL1,1bIC work is
available on the ur
Marlboro and Philip Morris' smoking quility
strategy. Marlboro has the product
characte-'.StiCS 2mund the world, and nicotine.
per puff is similar even where the t2i
levcls are vcrf dirrcrent. Mr. IT-tcr ask-cd all
nictribers to ask the participa-rits in the
study to brief their Marketing colleagues. In
particular 8ATCo should be more
lnvolve6, since the knowledge to improve hlenrind
products could be used in r-nany of
their c-cripanies. Mr. Bi-rimicy will a3k Mr. Rend
to conduct a 3im;lar vudy for
Vlrg;.i;a using (he methodology developed for this
study.
37. Nfe.-isii-ble Smoking Quality 1nd;catoi-s t
This has been included in the Plan
Chjidr:':n--s. Th. lasting nicthud devvloptd by
the Smoking Quality Study Tenm s~,ould
be irr-~',!menled by all companies.
Froductlon
38. Prodt,c!'cri rind Rcsei-ve Capnc;ty lZc%-ic%v
: Brown & WiNianiscri's proIL--:io:-.s show
that t~c;,- -,:]I nin out of box and pi imary
capacity in 1994. Ir Gr1C ~-t:rt: tu "z:
they alre-,dy cave run out of capLi~y. Hence an
extension is needed at Macon.
Prn(Ii:c::r,n ripacity at Scitithamplon will stw
to be tight if the growth ~0 China
contirue3, cycn wiih production being mc~-cd from
Southampton to Euci-c whe;c
possible. Extending production capacity in the UK
would have ACT advant2ges.
Nlr. Pr;fc!iird poi'nied-oijubal Imporiii probnbly
has surplus cap2city In the UK which
could ;'%c BAT the opportunity to occluirn: one or
thcir pu,-,;o!c-built 3"-.Vc-noo,
ricior:cs. BATCF has no reserve box capaciiy on
Iwo shills. Tle rese,-;c czpacity
comes rorn 1hc, potential for a third ihill
or.'~;trtirday wortring, where the prob-em would
be lack or trained staff. With Ubcrlandii worUil;
7 day3 a week, and nc%v rnzchincrf,
Souza Cniz has spare capacicy, although this could
change if 1~e doni=ic market
swilc~es :u box very quickly. Mr. Herter sLited
that reserve cnpicity niust take accriiint
ora rea:onable aniount of overtssne.
N.)
U11
--,I
Co
BATCO CONIFTIDENTIAL - CATEGORY 1: NT[NNESOTA
TOBACCO LITIGATION.
BATCo document for Province of British Columbia 25
October 1999


BAT PLAi4Nl?4G DEPT TEL: 071-222-8179 22.5ep.vz
11:zz No-UUL r.
7
39. Manufacturing Location Strategy for next 10
years : Thc Group agreed with
Mr. Allvpy that a 10 ycir view shritild start with
an agse.-tsmerit of the marketi and
trading blocks before considering how many
factoric3 wcrr- nr-cdcd, where and at what
size. It was agreed that Oils should be studied on
a regional basis, starting with Europe.
Mr. Bramley will liaisc with Dr. Schiveilzer on a
European study and report back to
the next TSG meeting.
40. Marturicturing Quality Control : Mr. Kohnhorst
presented an analy.,tix or the causes
of complaints at Brown Ar Williamson and BATCF.
With very few exceptions (3tale
clga.rctics being the only notable one), the
distribution or manufacturIng faults was
remarkably similar between the two companies. rt
is likely that (his Is true throughout
tl~e rest or the Group. Therefore, it should be
possible to develop a co-ordinated Group
appruach to reducing the number of faults and
hence complaints. Therefore, the next
s(cp is to brcodcn 1110 GfOLIP involvement and
co-ordinate work on major derr-cls. It was
2 greed th2t N.4r. lColinhorst would pull together
a team to co-ordinate this Group work
mr.d adso lo niaJ%c a propo-&al to the TS0
inecting in Febiuary 1993 vii wlictliar 01C Gruup
should pur5t;c an ISO 9LXJC' accreditation.
JUS,D/Tecimolne-,
41. ;'~Tr. Kohn1mrst reporte-d that several arrns
of niiitual interest had been established. He
wiII circuintc the programric for thc3c to the TSC
incinbcr3 wid inake a proposal to the
TSQj rneetirig in Februarf 1993 on how this is to
be taken forvard.
Revic- nr Trnd-2 Rectilfs
42. Mr. AlIvey will spc.Lk to of the operating
Groups indiv:dLial!y about their resulLs
and llorcczst. In particulaf ho will ensure that
there is a coherent Group approach to the
Lra.-.~Iatjun and ;)rz;.tc-ns arising from the
currcnr cx~:~zngc rate movements.
Re-2,,T!-,fqs.y.;;nd L~2~il T&sires
43. ETS : Mr. Prifclinrd reporied that (he scicncc
has not improved in the latest report, anc
Brown & Wiiliarnson will continue its wotching
brief.
44. FiL-Sare Cigni-eftes : Mr. Pritchard reported
that a teving methodology necds to be
;.cccP:cd by August 1993. The o,)T~75-ctor which
h--s so r2.r bee-i proved to reduce the
prcpcn!icy ;c, burn is c~rcuwfcrcncc.
45. Adverli6jig RP~Orictinn~ : The. NMA is
tobbying the FC' over the proposed adverlising
ban.
46. I.P-ir Cowmcts : NIr. l3rindey reported that
Guidelines have been i.-sued, and a dr2ft
has been Si,!n to SLandard Commercial for comment.
47. Mstributors Contracts : Alr. Bromley reported
that soine work still remained to check
whether there werc any differences between the
BATCo and Brown & Williamson
cuntrucis. NTr. Walzer will be aNked to review the
proposed cun(ract rrujij the Fuint ul
vicw of EC Lcgisla(ion.
Un
C)
CD
Un
BATCO CONFTDENTIAL - CATEGORY L.MENNESOTA TOBACCO
LITIGAT' ION.
BATCo document for Province of British Columbia 25
October 1999


SAT PLANNING DEPT TEL: 0?1-222-81(13 11-44 , .
49. Trndeninrks - Mr. Chniren pointed out that the
pnper presented was 2 legal review but
not a marketing revicw. It was agreed that, the
role of Croup Intemational Property
Smices (GIIIS) should be developed as proposed and
the 'fobacco Trade Mark Team
shnuld be established 2.S propnsed. One tnpic fnr
technical revirw by the. Team should
bc whether or not to recommend for markcting
consideration, the cstablishmcnt of a
single trademark company, and Mr. Chall"en should
report back to thc'lSG in February
1993. Renchmarking of GIPS' operations has started
and he will 21sn repnrt thix to the
TSG in February 1993. It was agreed, in principle,
that there should bc & single
tradernark company for future registrations, whlch
would all be carried out through
GIPS, since this would have no cost, give the
potential to maximise UK Income.
ellininntc confusion and obtain maximum
flexibility firom comprehensive Ucensing :
Mr. Cliaircit will rcix)rt 1v thc TSG In December
1992 on this. Mr. Chalren also
repc.~ed a problem in GIPS which rcsulted in many
tradernarks renewals not being
rr!2~.'!!, pillicularly for Barclay. The position
is being recovered, the computer
has bccll amemled tu climinale Ihi3 risk in
future, and the processes and
procedures should be audited.
INmnn Re5ourrrs
Tw;%,-Co,~,Imny Trnnsrers - Mr. Tlrnmroy remarked
on the high proportion ofyounger
49.
mnunngcr3 in the 3chc.-nc. Por it to be successful
with more senior managers, the support
of -~e TSO :s needed. %1r. Stc,cris said that
balance should be adjusted if possible to
void [he cur-zent predominancr. of Salcs and
Marketing -,taff.
50. Furc,.Ionni Triining : Mr. Stevens reporicd
th3t all the pilot programmes we.-C
estz'_,'::'shed in October and running through
1993. Pc sugZcsted that we shculd
conz:-'cr th;: --tscurces rrquircd in 1994
on~vards v;heri the pro;--,.mme will be rolle4~
out,
sir:;:t: :he sta','r running the prugmmmes also
have ftill-~!,nc jobs.
51. A,-~,-nLS31 SystenLs : It w3.s agreed that Mr.
Stevens would discuss the futur--
de-:,V,nc:it ur apjnaiial With the Opuniti;ig
Groups, with -a yicw to ensuring
th~- :'ey poduced rreaningrul deve!upnient plans
'.'or appraisets. He will make an
intc.im report to the TSG inecting in FeUru2ry
1993.
52. Nlan3genient Development Announceincrit : Mr.
S(everts reported that since the 1993
piog.:-,mme- or Chclvood lins bctn 2nnouncod it %v
d be prererabie to dcrcr rurther
ar.rc-ncctr.e-,Ls until the functional training
programme is well establlsheJ.
Mr. Sle~-PiLs wculd re;ort on the Leal' and
Production pilot programmes due to be held
in nt-!nN-.r :QQ2 it tho next TS(3 meeting. He
woold also recommend to the TSG thr.
forn-. of the 1993 Lransitional arrangements which
would ensure that the new
arT7,.-.-cmcnts were fully established,
communicated and in operation from 1994
on%4,z:ds.
BATCO CONIFTI)ENTIAL - CATEGORY 1: WlNNTE50Tk
TnnAccn I TTTr-%T!nNr
BATCo document for Province of BritiSh Columbia 25
October 1999


SAT PLAtMING DEPT TEL: 0?1-222-81?9 22.Sep.92
11:22 No.001 P.
9
S3. BenchmarkIne : Mr. Stevens will circulate the
surnmary p2l~dr on 13MChmaricing
produced by Brown & Williamson. The exercise was
very beneficial and will be
repeated and expanded. The overall conclusion was
that Brown & Wllllamson need to
upgrade si&niricantly the entry trade managers and
to formalise the man2eement
development prograrnmes. Mr. Bmitiley will apply
the methodology In BATCo and
reWrt, tu the Cliulnnun.
Anv Other 13.slne~A
54. Agenda ror Next NUcting : Counterfeit will be
added to the next Agenda which wul be
much pruned. Nllss Barlon will telephone inembers
2bout 6 weeks before the meeting
to ask for itenis 'or the Agcnda.
HCB
21 st ScpteTnl)cr 1992
Un
U'l
'--j
co
-11
C:)
'Irl r'nVrTT)PN;TT -% T. CATEGORY 1: MINNESOTA
TOBACCO LITIGATION.
BATCo document for Province of BritiSh Colurribia
26 October 1999