DR A F T Research Policy Group Meeting 18-22 September 1989 Pan Pacific Hotel, Vancouver, Canada Present: Mr. A.L. Heard RATCo. Dr. R.E. Thornton BATCo. Dr. R. Binns BATUXE Dr. P.J. Dunn Imperial Tobacco Dr. S.R. Massey Imperial Tobacco Dr. E. Rittershaus BAT-CF Dr. E. Kausch BAT-CF Dr. J.S. Wigand B&W Mr. G. McGregor WD & HO Wills Dr. C.J.P. do Siqueira Souza Cruz Guests: Mr. J.-L. Mercier, Imperial Tobacco, Tuesday, September 19, P.m. Guest Speaker: Professor Jeffrey Idle, U.K., Wednesday, September 20, a.m. Introftetion ALH welcomed delegates to Vancouver, noting that the circumstances of this meeting were unique in view of the takeover bid. It is even more important that the strategic issues of R&D are addressed and that we focus activities accordingly. Delegates agreed that the aims of the meeting should be as follows: To agree priorities for external S&H research. To agree research response to probable regulatory pressures. To agree future coordination on regulatory issues (residues, additives). To agree strategy for product innovation for 1990s. To share current approaches to ETS and to identify new i,Otiatives, if any. To review current status of Group R&D and to identify i=provements in coordination. co N) BATCo document for Province of British Columbia 27 October 1999 2 - Defensive Stratecies Smokinq and Health RET introduced the draft discussion document "Smoking and Health: Future Strategies for Research." This was a critical review of the main smoking and health work areas. After review, it was felt that the Group's historical concentration on detailed analysis of epidemiological data (by various consultants) had achieved most of the original objectives, so that a reduction in this direction now seems appropriate. It was noted that the industry is collectively funding substantial amounts of research in the area of disease mechanisms. Accordingly, it was recommended that the few group research projects related to mechanisms of smoking associated diseases, should be phased out in favour of research which would be more obviously related to the possibility of product modification based on directions suggested by regulatory authorities. A key area identified for additional work was the effects of nicotine. In addition, work in the following areas was considered to marit consideration: possible identification of susceptible minorities, confounding factors in heart disease and environmental tobacco smoke and examination of trends in various' sub-types of lung cancer. However, it was also accepted that some work in: additional areas, such as epidemiology, would still be required, particularly in refuting unsound statements made by the critics of the industry. The current research projects supported by the Group through the SRG were then reviewed against the objectives described above; for example projects by Professor Idle and Dr. Hin&=ch addressed areas identified above. Since the SRG were meeting in October, RET was asked to review existing projects and make recommendations for work to meet the new reqairements. In particular, S.R.G. was requested to consider further work related to nicotine, recommending possible projects with cost estimates. The financial commitments for the current SRG projects were as follows: E 1989 330,000 1990 294,000 1991 150,000 1992 71,000 1993 57,000 Assuming the existing level of funding, this would allow now projects to be phased in from 1990 onwards. However, the probable requirement for additional projects, e.g. nicotine suggested a budget of E344,000 would be appropriate for 1990. Additives Proposals for standardizing and coordinating the Group approach to additives were considered. The increasing trend for regulatory authorities to requi=e and to approve information on additives used by the tobacco industry 9.g. in Europe and in the U.S.A., made it increasingly necessary C) 00 BATCo document for Province of British Columbia 27 October 1999 - 3 - to have a coordinated Group approach in th4s area. Delegates were in agreement that the evaluation of additives fall within the area of responsibility of the SRG. RET was asked to produce a draft paper clarifying working practice in this area and reporting procedures, although it was anticipated that clearance of straightforward additives would continue to be handled by the AGP and similar Group committees. It was also anticipated that the AGP would, in future, check that recommendations were implemented. It was accepted that individual Group companies would be working within existing legislation, which might vary from country to country, but that a common approach to additives could now be introduced. in further discussions on the SRG activities, it was confirmed that the review of scientific literature would be carried out within Millbank, possibly augmented by specialists in Southampton. Millbank staff would also keep an updated data bank of external research, funded directly, or through manufacturers' associations of all Group companies. Given these changes in the role of SRG, Group companies were asked to reconsider their representation at the meetings. Potential Imalications for Modification of existinq Products RET described the current work on DNA adducts which had involved compounds which were present in C4 garette smoke. Scientific aspects of this work would be monitored on an ongoing basis by the SRG. Product Performance Requirements RET reviewed the existing performance requirements in Group manufacturing countries. It was suggested in future that such review should be extended to include all markets in which the Group operates. It was noted that the requirements were most extensive in European countries and the trend was for them to increase in all. Biological Testing The work by RJR in support of Premier has set a precedent for future biological testing of tobacco products and this may be reinforced by U.S. requirements for additives testing. Currently, RAT has under development a range of bio-assay tests, but as yet these are not available on a large-scale routine basis. The aim should be to achieve at least a capability equivalent to the U.S. National Toxicology Programme (N.T.P.) "Routine" schedule. A technical specialist meeting of Group experts will be arranged under JW to identify how this will be achieved in BAT. This will include consideration of automated test systems to achieve rapid throughput of samples. To avoid any conflict of interest with other tobacco companies through sharing a common test house, it was decided that BAT should use the in-vivo toxicology facility for product screening available at Bio Research in Montreal. CD CZ) BATCO document for Province of BritiSh Columbia 27 October 1999 4 - Smoke Chemistry For future product and process developments, e.g. Greendot, EPCOT, DEER, and for the evaluation of additives, more precise information on tobacco and smoke chemistry is required. Data is needed on pyrolysis and interactions between smoke components and adventitious chemicals. Our research results generated internally must stand up to external review. A more detailed work plan and estimates of the resources required need to be defined and the meeting agreed that Mr. T.G. Mitchell would be asked to draft a position paper before final endorsement. Proposals for Co-ordination on Aqrochemicals includinq Residues Analysis CJPS reviewed the present situation on legislation affecting agrochemicals, principally the U.S.A., Germany and Italy. It was likely in the future that restrictions on the use of agro-chemicals would increase, for example in the EEC, yet registration of new pesticides or retrospective registration of existing pesticides against new regulations would be very costly. It was therefore recommended that there should be a Group policy an agro-chemicals and after discussion, delegates agreed that this would become the responsibility of the AGP and SRG, as agreed earlier at the meeting for additives. (See Annex: Agrochemicals). it was noted that Souza Cruz R&D Department has facilities for the analysis of many agrochamicals. After discussion, it was further agreed that CORESTA would not be an appropriate forum for discussion of toxicological testing of pesticides. Specific Smoke Constituents (defined as "Other Noxal' by Requlatorv Authorities Against the overall work programme for reducing minor constituents of smoke that are of regulatory concern, RB described three possible goals: 1. Maintain a knowledge base on factors influencing specific constituents. 2. Provide background on the opportunities for removing specific constituents. 3. Develop products with reductions in specific constituents. The meeting unanimously agreed that the Southampton work should concentrate an I and 2 leaving 3 to the operating companies. Offensive strateQies General Innovative Concepts: Flavours CJPS described research in Brazil with respect botli to natural and synthetic tobacco flavours. The wide range of products included terpenic extracts, distillation and extraction of natural products, casings from tobacco dust and synthesis of compounds. Facilities existed for large scale production of such materials at Suvalan and C~) materials were already in major use in Brazil itself, and Chile, co Un BATCO document for Province of BritiSh Columbia 27 October 1999 - 5 - Argentina and Australia were sampling. Surprisingly, there was no other Group usage. By contrast, there was strong interest from the French and Japanese monopolies. ALH asked all companies to re-look into the possible use of Suvalan flavo=s, casings, etc., in their development work. Environmentally- improved Products Environmental issues represent one of the biggest concerns of people in Germany and in Europe as a whole. As a result, various attacks on the tobacco industry are possible besides perceived health issues. These could be based on water pollution, waste of non-renewable material and the accumulation of rubbish (e.g. filter). BATCF were aimed at establishing a competitive point of difference' in comparison to competitors. Biodegradable products represent one approach to meet these concerns and the current status of filters manufactured from polyhydroxybutyric acid (in conjunction with ICI) was described. 10% biodegradation was claimed for this filter after some months, but delegates questioned whether this was sufficiently fast to represent a marketing edge. Tobacco Biotechnoloav - (Yoportunities Brown & Williamson's programme for introducing now varieties of nicotiana were described. Both genetic breeding and the use of molecular biology had been used: there were advantages and disadvantages with both techniques, although molecular biology, with the possibility for specific gene identification, showed the greater potential. So far the programme had produced Y-1, a high nicotine flue-cured tobacco, which was now being grown in commercial quantities. However, there were same problems in producing in the U.S.A. and it was necessary to grow off-share to maintain proprietary control. Regulatory problems might also occur with genetically altered material. Tobacco Biotechnolocy - Co-ordination ALH described progress in the BAT Group in biotechnology. Studies were first carried out on new tobacco varieties by BATCF during the period 1979-198S. In 1983, BAT Industries commenced investment of venture capital into plant biotechnology although with no emphasis on tobacco. This culminated in 1988 in the acquisition of ATC laboratories at Cambridge, a wholly owned subsidiary of BATCo., whose research projects centered on eucalyptus, potatoes, and tobacco. Currently this programs is augmented by work at Brown rx Williamson (already described) and in Canada. Brazil is assessing the potential for biotechnology. So far the techniques and goals are not overlapping but it was agreed that a co-ordinating meeting would be hold in late 1990. Tobacco Extrusion Tobacco extrusion to sheet using tobacco dust is gaining wide interest in the Group through Project DEER developed by BATUKE, R&D. Capital running costs are low with the possibility of an R.O.I. of between 6-10 months. Possibilities of adding flavourings and casings and ammonia treatments, immediately- prior to extrusion, are now being investigated and submission to the regulatory authorities in the United Kingdom is in hand. BATCF also outlined the successful commercialisation of their extrusion process and its development programme, with a capacity of 450kg/h. The physical properties have been improved considerably, including filling power. There has been no effect on positive test characteristics. The process has been patented by BATCF. C) ~21 4 :z. BATCO document for Province of BritiSh COIUMbia 27 October 1999 - 6 - As a further develo-oment of the use of extrusion technology, BATUY--- R&D is actively pursuing Project EPCOT, aimed at cigarette manufacture by direct extrusion and wrapping. This greatly simplifies the processing necessary for cigarette production and good progress has been made in Producing products which behave like conventional cigarettes. Fowever, regulatory aspects of such products may need investigation. Low Nicotine Ciaarettes P.M. had introduced a low nicotine cigarette in the U.S.A. EK reviewed German experience in producing low nicotine cigarettes which had originated in the brand Auslese in the 1970s. Modern technology (based on the use of super-critical carbon dioxide and potassium hydrogen citrate) could be used to extract nicotine at 80% efficiency and was possibly patentable as an independent process to that already patented by P.M. It was noted that additional product advantages could arise from n1cotine ext-raction processes eg. nitrosmmines were reduced by up to 72%. Delegates were not convinced that there was a substantial market for such products, but agreed the desirability of having such tec:Mology available. Both BF.W and BATC7 are developing products for consumer research in 1990. Ammonia Technoloqy There was a widespread feeling that the success of Marlboro is due to ammonia treatment at some stage in the process. Studies in Brown & Williamson had indeed confirmed that ammonia treatment of tobacco increased consumer acceptance and current studies were aimed at obtaining a better understanding of the process and the processing options. BATCF sees in the exchange of ammonia and nicotine an important element of ammonia technology. EMERGE is flexible and simple applications system for ammonia. Its use in current product development led to an increased consumer preference with noticeably stronger resemblance to Marlboro. EMERGE is now being used in an increasing number of brands for both the domestic and the foreign markets. B&W Export is interested in EMERGE for those countries where DAP cannot be used. Oblectives for Product Innovation ALM introduced this topic with a review of opportunities in what was largely a diminishing market. The major international companies were competing in this arena with minor product innovations, but there were a large number of former smokers who were potential customers, if some of the health issues that concern them could be addressed. Concepts in the Group, such as project EMN, addressed these issues and R.J. Reynolds had attempted a revolutionary solution with Premier. Favor was an even more extreme response but for various reasons, both products had failed in the market place. Premier, in particular, had extremely low biological activity and Sidestr:am it was unsmokeable, overtly technologicall and In reaching too far, wa challenged as being a cigarette. BATCO document for Province of BritiSh Columbia 27 October 1999 - 7 - ALF proposed a strategy for product innovation that responded to the neqa,:_*Ve perceptions of regulators and consumers. Dialogue with regulators is of great importance if the product modification route is to be kept open. In consideration of external evaluation of evolutionary products, delegates noted that approval by regulatory authorities was mandatory in several cc=r_-ies, notably in Europe. R.J. Reynolds had attempted to solve a potential problem in the United States by the formation of a panel which, however, had only commented an the quality of'methods (rather than the S, 9:Lificance of the results), and this had not prevented a hostile reaction to '-'is product. Indeed RJR had claimed that one lesson learned from the Pre=i,er exercise was the hostility of anti-smoking authorities to a product which met criteria that they had themselves suggested. Delegates agreed that, where possible, we should talk to regulators an the bas--s that they should accept the wishes to smokers to continue to smoke but with products that they have an opportunity to influence. Such d1 scussions were ongoing in the United Kingdom and in Germany and it was agreed that it should be part of the Group strategy to expand the scope of such discussions wherever possible. Based on lessons learned from the failure of Premier and Favor (both of wh--&. attempted to make a huge leap in product modification) it was proposed that BAT pursue an evolutionary route to a Premier-like product by year 2000. Our approach will be responsive to regulatory concern and will be founded upon delivery reduction, 9.9. it will gradually reduce tar/nic, biological activity, 'other Noxal , CO and sidestream but avoiding overtly technological product designs. Paramount will be the requirement of retaining consumer satisfaction in taste and flavour terms. Nicotine is seen as key to our evolving products and the meeting agreed to taking steps to establish proposed further nicotine-related projects (SRG projects will reflect this). The broad aims of the Product Innovation Strategy were agreed and our cu_-_-ent new product technology portfolio (Greendot (I-111), Day, Coaxial and Neva) was considered appropriate to realising the. aims of this prop_osed strategy. JW asked that ignition propensity be included in the overall I=ovation Strategy. New Proiect Guidelines C=:pany guidelines for novel products were proposed. In the context of nicotine members agreed that products should not increase toxic potential, as compared to existing products and that this point should be incorporated into the final version of any such guidelines which would also address issues such as the requirements for toxicological evaluation. Review of Proiect Greendot R3 described. progress on Project Greendot, noting that there was to be a meeting between technical and marketing functions in Southampton (luring october 1989. Research had shown that tar and nicotine deliveries of 1 mg each could be obtained, albeit with approaches not all of which are likely to receive clearance by regulators. Current work was focused on three targets as follows: 1, Nicotine 0.4 - 0.7 mg, Tar 6-7 mg: 2, Nicotine C__ 0.-1-0.6 mg, Tar 6 mg: 3, Nicotine 0.4-0.5 mg, Tar 5 mg. CO BATCo document for Province of BritiSh Columbia 27 October 1999 - a - It was to be noted that options 2 and 3 would probably require the use of sheet, of which 90 prototypes bad been made so far. RB br--efly introduced Projects NATO and WARSAW, both sub-projects of Greendot. NATO is a short-term project incorporating into products a high inclusion of expanded tobacco. Targets were 4 mg tar, 0.6 mg nicotine and 1-1.5mg glycerol. Targets for WARSAW were similar but with greater options on product design. The current prototype had met most objectives (tar, nicotine, taste and conventionality) and had produced substantial reduction in specific mutagenic activity as defined by the Ames test, although much of t!ie reduction is attributable to glycerol dilution. In terms of approaches to regulatory authorities, there was considerable discussion on likely requirements for the specific biological activity of products In which the smoke was diluted with glycerol (even if it met existing requirements as to the amount of glycerol). Delegates agreed that the specif4c activity of the condensate from any product should not exceed that of a reference cigarette when allowance is made for the dilution factor arising from the use of glycerol. A recent study on glycerol inhalation toxicology by Battelle conducted for the U.S. manufacturers has produced a confusing result due to poor exper!mental design. JW will pursue this topic with the other U.S. companies with a view to a further study. If high levels of glycerol are not acceptable to regulatory authorities, other materials might be needed to support nicotine in an aerosol, it being felt that glycerol had no unique properties per as. It was agreed that RET would seek external opinions on any work necessary to validate the properties of smoke containing increased levels of humactants. The meeting agreed that in Greendot 2+3 steps are taken to reduce the specific biological activity of the tar by use of 'Other Noxal or DAY technology. in discussion, delegates agreed that work related to "all synthetic" product options should be transferred to project Nova which is concerned with materials technology. Prolect Day SRH described progress on Project Day. Low biological activity had been obtained for products made from Gerlach sheet (a process in which methylene chloride is used to extract tobacco). Further work had been aimed at removal of major precursors of smoke components by the use of solvents more polar than methylene chloride. Target precursors included steroids and polyphenols. The use of proteases to further reduce deliveries of target smoke components was also under way. SRH stressed the importance of human nw*ting behaviour studies in evaluating prototypes and illpstrated some work in progress. It was also agreed that elements of the Day programs, as it developed, be built into the Greendot programme. ITL will also investigate -smoking behaviour on Greendot prototypes. C3 \4 D BATCo document for Province Of BritiSh Columbia 27 October 1999 9 - Proiect Coax This was introduced by BY--- The technology all the coaxial cigatette, which had been patented, offers opportunities in meeting consumers' attitudes towards cigarette development. Through the combination of a coaxial rod and filter and with different materials for the care and periphery, the smoke from which can be filtered differently, a very flexible approach is available. Work has concentrated on the effects of different densities and on sheet materials for the inner wrapper. Results to date show potential in the regulation of specific smoke components and in reducing biological activity. Such cigarettes also have low ignition propensity, a feature of increasing importance in North America. Airbus JW briefly described the problems associated with Project Airbus during the one-year period in which work was carried out and confirmed that the need for basic research had been highlighted, this is now undertaken at Southampton as Project Nova. The Project A.1ebus itself had been terminated because it was technologically impossible to construct acceptable =Ving furnace devices. After considerable debate it was resolved that the tex-ms of reference of Nova should be re-written to ensure that they embrace technology but not product goals. It is probable that B&W would pursue the product work once basic research has shown di-rections. Environmental Tobacco Smoke (ETS) The current position on ETS in the countries represented was summarised. In all countries, the position was worsening with regard to the introduction of legislation controlling smoking, for example in Public buildings or on aeroplanes. Extreme cases included the 11tyranny" of one concept applicable in Toronto and the position in Now York City where smoking areas were getting vanishingly small, necessitating people to smoke outdoors. In the U.S.A., pressure did increase after the recent E.P.A. study which had ascribed a large element of sick-building-syndrome to ETS, rather than to poor ventilation, etc. as shown by other studies. only in Brazil was the situation less developed and undoubtedly, the situation there would tend to worsen. In Australia, the issue was the subject of -c centered an a misleading advertising claim by the litigat, n originally Australian T.I. (based on a study by P.N. Lee) but which now centered on the opponents having the onus "to prove the scientific care" against ZTS. This case is likely to come to trial in spring 1990. Group strategies against these pressures were discussed. Strategies for using scientific informtion externally had been suggested by BATCo. in the document "ETS - Improving the Quality of Public Debate". Delegates were asked to keep Dr. Boyse of Millbank informed on the use of the document and on any problem encountered. CJPS stated that the associated document "ETS - The Science" had already been translated into Portuguese. Much re-analysis of epidemiological data had already been carried out and this area now seems capable of generating diminishing returns. In any event, P.M. were -now very active in this area. Residual epidemiological studies would have a greater emphasis on studying confounding factors which could explain some of the weak associations claimed. CD BATCo document for Province of BritiSh Columbia 27 October 1999 - io - Delegates agreed that high quality Internal work was also required, for example in refuting unwarranted external claims on levels of smoke components in ambient air, or to support external projects. Knowledge of smoke chemicals was usually greatest within the industry. A key objectve of the current Group research programme on ETS being carried out in Southampton had been defining levels of ETS constituents in real life situations. Environments included betting shops, offices in air conditioned buildings, train compartments, buses and private homes. Six papers had been published, three were in preparation and presentations had been made at seven international conferences. A brief account of the work had been given on British television, in a programme addressing the issues of ETS. BATCo. is also producing a video on ETS. It was now proposed to extend this work by means of a survey of 500 non-smoking women (who would wear a personal monitor for 24 hours) together with two subsidiary studies. After discussion, delegates recommended that a study of this size would be best carried out externally (albeit with advice from Dr. Proctor) and a possible venue was the Gage Institute at the University of Toronto. This would be investigated together with the possibility of industry rather than Group funding. However, in view of the complexities of this area, it was agreed that Dr. Proctor would be asked to convene a Group meeting, to be held in Canada in November 1989, to propose a programme for external ETS research showing projects broken down by topic and location. Strateav for Low Sidestream PJD described work in Canada focused an a low sidestream product. Consumer research suggested a poor demand for a low sidestream product but after discussion, delegates agreed that there was probably sufficient potential demand to support a research effort. In any event, P.M. had marketed a reasonably acceptable low sidestream ultra-slim (double-wrapped) product with explicit claims as to the extent of reduction. The success or otherwise, of the cigarette in the marketplace would indicate the real demand - as opposed to views based on market research for such products. BATUKE R&D had developed a strong patent portfolio around low sidestream products and through a joint collaboration with do Mauduit have achieved a product with good taste and ash character. This is to be consumer tested. EX noted that substantial reductions in sidestream deliveries could be achieved by alterations to the paper making process rather than by incorporating additives into the paper and will keep the Group informed of this very interesting new initiative. Genetic Pre-disposition Professor J. Idle addressed the meeting on the subject of genetic pro-disposition. orqanisation and Co-ordination of R&D in Group ALE reviewed the resource allocation within the current and proposed total Group research programme which was based on approximately 403 professional staff in the Group (equivalent to UK grade 5 and above). It was stressed that quality of this management data is determined by tightness of definition of project descriptors and by the care used in defining C) (_-4 ~_n C_' BATCo document for Province of British Columbia 27 October 1999 11 -il----'Vidual projects. The proportion of Fundamental work will a-rop, slightly 1989 to 1990 mainly due to the transfer of Greendot as kpplied. The c===apt of Exploratory Research covering the more empirical innovative research was re-introduced (from 198S) and an estimate for 1990 shows that a:-7---cximately 10% of total effort falls in this category. Companies will be asked to refine this estimate. cf projects described as for Group benefit (rather than for a specific rating company) 50% are done by Southampton and 25% by Souza Cruz. 1989, Wills will not be shown in the Group R&D programme. T'- e total cost of Group Fundamental Research at Southampton (plus Greendot end- Nova) will exceed 1989 only by inflation. Contributiors by the four C;~C contributors are recommended as follows (with BATCo. accepting the -f==er 7% paid by Wills): BATCo. 32% Brxw 30% ITL 19% BATCF 19% =-e content of the Fundamental Programme (attached) was agreed, subject to refLiament in detail. The funding requirement is in line with individual =pany expectations. regard to the SRG funding, the minimum commit- nt for 1990 was .4,000 but as the SRG had been asked to recommend additional projects, --e minimum budget proposed was E344,000 which BATCo. managa=ent recommend s~iculd be divided equally amongst the four contributors (S86,000). This was agreed. =-e meeting agreed future Technical and Specialists meetings according to I .~:e following schedule. Product Testin Southam ton Dec 89 g p 2. ETSExternal Programme Canada Nov 89 Biological Methodology U.S.A. I Q 90 4. Flavour Ma-- Ct (ag-reed 1988) Product Development incl. ammonia technology, filters U.S.A. Mid 90 sidestream, etc. 6. Tobacco Biotech Europe 4 Q 90 - SRG Copenhagen oc~ 89 Canada Apr 90 Fundamental Research Review Southampton Maz 90 (incl. Coresta position) RPG Germany .1un qO BATCo document for Province of BritiSh Columbia 27 October 1999 - 12 - Del eca~as also discussed the need for better coordination of BAT delegates to ;r=--'zations such as CORESTA, where for instance, P.M. had a very well organ;--ad presence. it was agreed that this was best done by RPG members giving clear instructions to the participating members from their cc=any. Guide* ---es would be agreed at the Southampton Review in March 1990. The =ex-- meeting of the RPG was arranged for June 1990 with the venue Hac~r.ur:-, Germany. The =as-:--ng concluded with a critique of its activities and a vote of tha;-ks = the Canadian host. AT:-: / A:Z- 28 Sev:.~er 1989 BATCo document for Province of British Columbia 27 October 1999