c,41,z,_d-,,t- tL Cd(; H.J. SCOTT - Azency Presentation Nice June 1981 There's no need for me to tell you that the process of marketing cigarettes is a= increasingly controversial business, nor that our ability to use c~onventional methods of advertising and promotion will be further const=ained over the coming years. However, I thiECL there is value in examining the development of the controversy, the attack that faces us on a wide range of fronts at the moment, the ind%;scry position and the development of countermeasures; then to move on :o a more detailed look at the restrictions we face and finally, despite a basically gloomy prognosis to look at the opportunities there are for us. Although I will '--e speaking against a worldwide background most of my remarks will be founded in a U.K. base. The anti-smoking movement is spreading around the world at considerable speed so I think its fair to say that what the U.K. does today the rest of the world will do tomorrow, if it hasn't alraady done it yesterday. Through the early years of the twentieth century the habit of smoking spread widely. ~_he two world wars incresed the habit dramatically among men, and -amen with an Increasing emancipation also took to the habit. But it wasn't =:11 1951 that the first major report linking smoking and disease was -:ublished in the U.K. L.-4 C) 00 co BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 2 This was the Doll and Hill study. It -as an epidemiological study - that is it was based on statistical studies of smokers and non-smokers and studied the frequency that they contracted various diseases. In many respects this study is still the basis of today's anti-smoking arguments. Smoking continued to increase in the West during the fifties, although discussion in scientific circles began to spread to the general public via the media. But in 1962 a major report from the U.K. Royal College of physicians was published. Called Smoking and Health it gained massive publicity. The report surveyed most of the important work in the field and made five major recommendations: ~ Restrictions to be applied to tobacco advertising ~ Increased taxation on cigarettes ~ Restrictions on sales to children ~ Restrictions on public smoking ~ More information on the tar and nicotine content for the consumer Twenty years on these are still the basic points of the anti-smoking attack although increased taxation is also being promoted in many areas. c0 BATCo document for Province of British Columbia 29 October 1999 Agencv Presentation Nice ... 3 Two years later the United States stepped into the debate with the publication of a report "Smoking and Health" by the U.S. Surgeon General. And since 1967 this report has been updated annually. Since then many government agencies around the world have followed with their own reports, all basically supporting the U.S. and U.K. publications. The real international momentum against smoking began in 1970 with the first of - so far four - WHO conferences. The World Health Organisation's 23 rd assembly In 1979 was entitled "The Limitation of Smoking". The conference covered: ~ How to control smoking ~ Esta'blishment of non-smoking policies ~ Preventing the on-set of smoking ~ Changing smoking behaviour ~ Influencing public attitudes. and Importantly, ~ Promotion of international co-operation. The comference was marked by the more professional organisation of the WHO Secretariat which became an active publicity generator. Secondly there was a much greater resolve amongst the delegates - and particularly those from the Middle East and some African countries - to take aciton an the conference theme of "1980 the year of the non-smoker". co _r~l r\j C) BATCo document for Province of British Columbia 29 October `1999 Agency Presentation Nice ... 4 That very briefly is an outline of the type of anti-smoking pressure that has been building up around the world for some time. In the face of this criticism the Industry position has been defensive, in the extreme. It's fair to say that the industry just did not know how to react to the initial studies, its response was to keep a low public profile and to initiate its own and Independent research over a period of time. The results of that rese.rch have, in very simplistic terms Indicated that the case against smoking is not proven. Cause and effect relationships between smoking and various diseases have not been established. However there is a considerable body of opinion, based on the statistical associations, that has concluded that smoking is a cause of certain disease. It's also fair to say that this opinion has general public acceptance in the developed world. I would like to look at Independent medical and scientific research th. he modern cigarette, with its substantially lower smoke 'deliveries', tLt -Z-~~ CX_ -f- ~U- is associated with a lowerCxA=t=tn health. 1 tck '04 vt.~~ I " _? -r,~ '-tl.t Mos 'It should be noted t of the acknowledged authorities I shall refer to characterise themselves as 'anti-smokers'. Inf BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 5 First, let me summarise the findings of a number of major worldwide epidemiological studies that have been Interpreted in terms of cigarette design: Of all the epidemiological studies to date, probably the most comprehensive, and well known, is the so-called "One Million" prospective study sponsored by the American Cancer Society - started in 1959 by Dr. E.C. Hammond, and now continued by Dr. Lawrence Garfinkel, Vice President of the American Cancer Society. The following is a recent direct quotation from a paper by Dr. Garfinkel to the 1979 World Smoking and Health Conference: "Analysis made of the mortality in cigarette smokers in the American Cancer Society study showed that there was a small but consistent decrease in both men and women in those who smoked cigarettes with low tar and nicotine compared to those smoking high tar and nicotine. over a 12 year period, the lung cancer rate averaged 26% lower." But perhaps the most interesting recent publication is that of the U.S. pathologist Dr. 0. Auerbach, of the Veterans Administration Medical Centre, New Jersey, who in two periods, 1955-60 and 1970-47, examined 20,425 sections taken at autopsy from the bronchial tubes of 445 non-lung cancer deaths. The results were expressed in two forms. c0 BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 6 First, the percentage of slide sections that exhibited pre-cancerous changes that might have developed with further time into a lung cancer. Second, the percentage of slides that exhibited 70: or more "atypical" cells, against classified by smoking habit. In a joint presentation of the findings at the 1979 Cold Spring Harbour Conference, which was entitled 'A Safe Cigarette' , the authors concluded with the statement that "The tenfold decrease in carcinoma- in-s itu observed in this study, we believe, has tremendous signifcance in the future of lung cancer in the U.S." In a discussion of the paper Dr. Gio Cori, a Deputy director of the U.S. National Cancer Institute, commented: "And perhaps what we see here is the forerunner of what we will be seeing in epidemiology in a few years from now." A further comment on the Auerbach findings, and on the general subject of the reported decreasing incidence of smoking-associated diseases, was given by Dr. Richard Peto, Reader in Cancer Studies at oxford University, in an article published in "Nature" on 27 MarAch 1980: "Smokers of 'Less Dangerous' cigarettes have already been found in various epidemiological studies to have disease rates which are materially lower than smokers of other cigarettes. (ZD co L4 BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 7 A more recent comment an lower delivery products was given by Professor Doll, Dr. Peto and Mr. Copeland in a paper in the British Medical Journal (7 March 1981): "The trends in tar yield may well explain the reduction in lung cancer In the U.K. better than has been suspected hitherto." Many other independent scientific authorities have made similar suggestions that the reduced deliveries of tar, nicotine and other components of tobacco smoke are primarily responsible for a reduced incidence of smoking associated diseases. It has been pointed out, however, by Dr. E.L. Wynder and Dr. D. Roffman of the American Heart Foundation, that because of the very long induction period believed to be associated with lung disease (20-30-40 years) any correlation with the change in cigarette deliveries could only relate to the early 1960 trend to filtered cigarettes with reduced tar and nicotine deliveries - not to the current move started in the mid-'70's towards even lower deliveries by means of ventilated tippings, porous paper and modified tobacco blends. Thus, they stated in a paper in the American Journal of Public Health, November 1980: "Presently available epidemiological data relate only to those who began to smoke cigarettes with high 'tar' and nicotine yields. only future studies will demonstrate the risks for those who initiated and continued their smoking habit with low yield cigarettes." C:) c0 -i~:- BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 8 These arguments have not yet gained general acceptance and the industry is still fighting a series of rearguard actions In the face of pressure from government and medical authorities. The threat of legislation is very real in many markets - and by legislation I mean control of advertising and promotion not of legislation to ban smoking. Of course, some of our opponents would like just that. But it is generally accepted by governments that prohibition would be impossible. Ha;ing gained that acceptance the industry generally - and the U.K. in particular has advoctated that a system of voluntary agreements between industry and government is the beat way of conducting our affairs. The complex structure of controls in the U.K. - outlined here - contains only one statutory control - that of the ban on T.V. advertising :imposed in 1965. The rest have been accepted by the industry following often protracted negotiations with government. We are now planning as the basis of legislation in the U.K. from July 1982 when the current voluntary agreement expires. CZ) co BATCo document for Province of BritiSh Columbia 29 October 1999 Agency Presentation Nice ... 9 Ho,rever, we are aiming to forestall or at least modify such legislation in order to retain as much marketing freedom as possible. I mentioned earlier that there is acceptance that smoking will continue. In our discussions with government we point out that given that, a government objective is to reduce tar levels in cigarettes, the manufacturers need the freedom to advertise in order to Influence the move to lower tar brands. Although these interest the consumer they do not always manage to provide anlacceptable smoke. Seven in ten TJ.K. smokers have tried low tar cigarettes and gone back to middle tar, but four in ten still want to make the move. In order to support this move to lower tar products advertising is needed to enhance image, inform of product benefits and the like. I've spoken so far about the primary health attack which developed in the 60's and became generally accepted in the 70's. co BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 10 This is a tribute to the effectiveness of the anti-smoking campaign; but within that success were the seeds of failure. For although the vast majority ararapt- that smoking harmful the number of smokers giving us has not been dramatic. The smoker has rationalised the dangers against the pleasures of continuance. Because of this situation the single thrust of the arugment against smoking has been replaced by a multi prong attack that takes on the Industry on several levels. The first of these has been the question of social acceptability of smoking. 400 years ago King James I of England said of smoking: "It is a custame bothersome to the eye, hateful to the nose, harmful to the brain, dangerous to the lung and in the black stinking fume thereof nearest ressembling the horrible stygian smoke of the pit that is bottomless." In other words it was damaging to health but secondly an anti-social unpleasant habit. Updated versions of the attack come from Health Education Council campaigns which concentrate on issues such as: CD CO -L-. BATCo document for Province of BritiSh Columbia 29 October 1999 Agency Presentation Nice ... 11 These campaigns and ones aimed at promoting social unacceptability were not gaining much ground until the,so called dangers of passive smoking were highlighted. This argument) works on the basis that "a smoker is perfectly free to kill himself by his habit" but if his smoking affects non-smokers then there is good cause for further restrictions on for example, smoking in public places. The arguments to prove the accusations against passive smoking are not strong; yet they represent in our opinion the greatest threat to the industry over the next few years. we need to be developing campaign for tolerance by smoker and non7-smoker - and this indeed has been done in America. Or to change the product itself to provide less, or no, sidestream smoke. Whatever the outcome this is an area for close attention and development in the coming years. Q4 CD co BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 12 Another area of attack against the industry focusses on our role as multi-national. Anti-smokers are of that persuasion which sees any multi-national, per se, as bad, and tobacco multi-nationals as the worst of a bad bunch. First we are attacked for exploitation of Third World famers. The growth of tobacco prevents the growth of food, it reduces the national forests because wood is used in tobacco curing, and exports are not as high as they might be - is the general run of criticism. In fact little of this is true: tobacco is a good cash crop generating money to improve food growing potential; wood is used but massive reforrestation programmes have been put in hand by tobacco companies; exports do in fact earn valuable millions - $1200 last year for Third world countries. - The second Third World attack is an accusation of double standards in the advert ising and promotion of our products and in the delivery levels of those brands exported to Third World Countries. There are weaknesses in our defences in these areas as we are in the process of putting our house in order but in general we abide by local practice and specifically do not promote.the concept of smoking nor appeal6~' to children. Also, its broadly true that our international brands have similar delivery levels to their domestic counterparts. CD co X, rQ BATCo document for Province of BritiSh Columbia 29 October 1999 In a joint presentation of the findings a: -.he 1979 Col'd Spring Har'-.our Conference, which was enritled'A Safe Cigarene", the authors concluded with the statement that "The renfold decrease in cardnoma-in-sim observed in this study, we believe, has tremendous significance in the future of lung cancer in the US." In a discussion ofthe paper Dr Gio Got', a Deputy director of the US National Cancer Institute, commenced: "And perhaps what we see here is the forerunner ofwhat we will be seeing in epidemiology in a few years from now." The paper was published in the New England journal of Medicine (22.8.79) jointly by Dr Auerbach and by Drs Hammond and Garfinkel ofthe American Cancer Socie:-i - but only after the latter co-authors had satisfied themselves about the accuracy of the findings through repeat checking and by an independent -mination ofa sample ofthe slides by another person. A further comment on the Auerbach Findings, and on the general subject ofthe reported decreasing incidence ofsmoking- associated diseases, was given by Dr Richard Peto, Reader in Cancer Studies at Oxford University, in an article published in "Nature" on 27 March 1980: Smokers of'Less Dangerous' cigarenes have already been found in various epidemiological studies to have disease rates which are materially lower than smokers of other cigarettes. At autopsy they have far fewer 'Pre-2,Ntalignant' histological changes in their bronchi and, perhaps due to the changes in cigarette composition 10 or 20 years ago, male lung cancer death rates in early middle age are now decreasing in North America, in Britain and in Finland. A more recent comment on lower delivery products was given by Professor Doll, Dr Peto and Mr Copeland in a paper in the British Medical Journal (7th March 198 1): "The trends in tar yield may well explain the reduction in lung cancer in the U.K. better than has been suspected hitherto." Many other independent scientific authorities have made similar suggestions that the reduced deliveries of tar, nicotine and other components oftobacco smoke are primarily responsible for a reduced incidence of smoking , associated diseases. It has been pointed out, however, by Dr E L Wynder and Dr D Hoffman of the American Heart Foundation, that becaust. ofthe very long induction period believed to be associated w-ith lung disease (20-30-40 years) any correlation with the chaage in cigarette CID C,4 (-,4 CD BATCO document for Province of BritiSh Columbia 29 October 1999 deliveries coLld only re!ace to the early 1960 crend to E,_-red cigarettes with reduced car ard nicotine deliveries - not to the current move started in the mid-'70s towards even lower deliveries bv means ofvencilated rippings, porous paper and modified tobacco blends. Thus, thev stated in a paper in the American journal ofPublic Health, November 1980: Presently available epidemiological data relate only to those who began to smoke cigarettes with high'tarl and nicotine yields. Only future studies will demonstrate the risks for those who initiated and continued their smoking habit with low yield cigarettes. One way that has been suggested to rest the basic hypothesis that low delivery cigarettes are associated with a low health risk is to carry out a major comprehensive prospective epidemioiogical survey - in which groups of people who had chosen to smoke (a) low delivery c~garertes, and (b) higher delivery cigarettes throughout most ofthe 1970s were documented, and then their smoking habizs and their health followed for at least 10 years. However, there are serious questions about conducting such a test, cg the large number of subjects that would be necessary, difficulty dgerting reliable data, the self-selection ofsubjects, the greatly differing environments, the organisation and the cost. Before leaving the subject of epidemiological evidence relating to smoking and health, it is pertinent to note the recent study ofc. 16,000 men aged 35-64 years who attended the EUPA Centre, London, for comprehensive health-screening mminarion between March 1975 and Dec:mber 1978. In a paper published by Dr A Bailey in "ne Lancet" on 18 October 1980 - in collaboration with Dr Nicholas Wald ofthe Cancer Epidemiology and Clinical Trials Unit, University of Oxford - Vitamin A (retinol) levels in 86 subjects who had developed cancer were compared with 172 controls who ha.d not developed cancer. The following was the striking finding: Low retinol levels were associated with an increased risk ofcancer. The association was independent of Age Smoking habits Serum-cholesterol level and was greatest for men who developed lung cancer. CD CXD BATCo document for Province of British Columbia 29 October 1999 Changqsin cigarette desim Permeable Paper Tobacco Air Vents Filter Air Air _ _ 7 ~ Smoke 7 _7 7 I in- 7 1 Itered and diluted with air I think it may be of interestat this stage to give some facts regarding lower delivery cigarettes. The present-day cigarette looks physically almost identical to the cigarette of the past. But the deliveries of the components considered harmful in early cip , rettes a-re very different from those in the average modem cigarette - and vastly different from those of the advanced cigarettes which are available in many countries. First, some statistics about how the "sales-weighted" average tar and nicotine deliveries have chariged significantly since the mid-1960s: I K TIR The main features ofa modern low delivery cigarette, with ventilated tipping, is illustrated below: SALES -GHTEDTAR % % % L % % % % % % J 7NICO-E j -1 72 74 'i 71 C CD CO BATCo document for Province of BritiSh Columbia 29 October 1999 S.IE~ 7 ~ 73 7~ C-- 7~. 74 -Cd Astency Presentation Nice ... 16 Freedom to do business: The controversy surrounding cigarettes is well known. The cigarette remains a legitimate product in society and, therefore, manufacturers should be allowed to market the product by all the legitimate methods open to the product categories. In order to best defend itself around the world, the industry has taken the view that it is better to speak with one voice rather than as separate manufacturers. At an international level the manufacturers are represented by Infotab: It has seven member organisations. They are - British-American Tobacco Co. Ltd.9 Gallaher Limitedq Imperial Tobacco Limited, Philip Morris Inc., H.F. & PH. F. Reemtsma, R.J. Reynolds Tobacco Company and Rothmans International Limited. Infotab supports national tobacco manufactures' associations and individual companies in dealing with issues related to smoking. Serving principally as a clearing-house for information, including data from independent scientific research funded by the tobacco industry in a n-ber of countries, the organisation co-ordinates industry efforts an matters of common interest with particular regard to smoking as a social issue. Infotab does not deal with matters connected with the marketing of tobacco products or other issues of a competitive or commercial nature. U4 CZ) L-4 BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 17 Various committees look after key areas such as: Social Acceptability Working Party EEC Consumerism Task Force Developing Countries Croup Defence of Advertising Comittee At national levels there are the NKA's like Britain's TAC or America's Ti. I now want to turn to the threats which we face in the coming years. These fall into two areas of commercial and health related. Firstly commercia.1 problems. Throughout the world attention is being focussed on the industry under three major categories. 1) Promotional restrictions Advertising and sponsorship must be considered to have a limited life and may be the subject of legislation in many markets. 2) Dut,, Most governments are aware of the value of the revenue from tobacco and are prepared to use duty increases as a fiscal measure against smoking, but unlikely to depress demand sufficiently to adversely affect revenue. U.K. approach may however question the validity of this statement. 3) Product modification Following RCP and WRO guidelines more governments can be expected to impose de-livery limits: e.g., Saudi 15: 1 mg tar/nicotine and also specify on packs and advertisements. CD c0 BATCo document for Province of British Columbia 29 October 1999 Agency Presenzation Nice ... 18 Secondly smoking issues will continue to spark controversy. We do not anticipate an7 conclusive new research to indict or reprieve smoking in the foreseeable future. Smoking issues, whilst not neglecting the primary health arguement will therefore concentrate on other areas. These are: 1) Passive smoking White and Froeb, Hirayama a papers have given the first scientific support 1:,r2( ~h of passive smoking. Other research has questioned this but the issue does remain live. 2) Youth campaigns Significant shifts in the opinions of young smokers seem to indicate the possibilities of a "non-smoking generation". 3) Smoki=g restrictions Will increase socially and as part of planned prohibition in public places. 4) Social unacceptability Will increase due to mounting pressure. Against this the industry is still having great difficulty in presenting a credible co=ter position. Work is however developing and the U.K. is showing signs of the work that lies ahead. 1) Allies We are beginning to rally our allies and generate third party support. Areas for support are: U4 co Ul BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 19 Tobacco Trade Advertising industry - agencies Related trades - drinks Media Trade Unions 2) Lobbying We are developing our case to M.P.s and civil servants relying strongly on the Freedom issues. 3) Open campaigning Corporate communications on behalf of the industry are being investigated which may vary from booklets on various issues to a full blown corporate advertising campaign. 4) Consumer pressure group Activity to get a consumer pressure group working effectively has been centred on an organisation called FOREST. Problems: Credibility Staff Opportunities: Freedom to comment Lobbying potential Hass Publicity 5) Medical opinion Developing concept of the "changed cigarette" with BMA etc. In my final section I want to look aE some of the increased restrictions we are facing and despite this- restrictive environment some of the opportunities that are posed. CD 00 41- (A C7 \ BATCo document for Province of BritiSh Columbia 29 October 1999 11 Agency Presentation Nice ... 20 Advertising The restrictions on advertising come in two ways: either there are media constraints or regulations concerning creative content. Industry, policy is to maintain media whenever possible and we are quite prepared to accept strict creative restrictions in order that we can continue to communicate. Promotions These can attract unfavourable publicity and consequent outlawing if they are too blatant. Promotions must be created which though effective in consumer terms, do not pre-empt adverse reaction. Herchandising Generally seems to escape attention but as we have seen with window displays in the U.K. excess exposure can result in a crack-down. other goods Again there are dangers of being "too successful" and care should be exercised to never appeal to younger market. Commercial opportunities Current 1) There are obviously product and advertising opportunities for the "changed cigarette". CD 00 -C:.. Ul~ BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 21 2) The no sidestream brand may attract attention. Future Parallel advertising Satelite Television Private video New pack design co J~!- U-4 c0 BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice 22 In summary then, how do all these issues -affect the advertising agency and what can the Agency contribute? Basically the Agency is or should should be affected by all these issues. Understandably, the major concern is to produce the most effective creative proposition for the clients' brands and the most persuasive advertising execution. However, in an environment where smoking issues are becoming Increasingly aired in public, it is essential that these are taken into consideration by those involved in communicating -with the public. Taking the basic smoking and health controversy first, all of us are either smokers or non-smokers and all of us are capable of taking up a position. Hopefully, by being prepared to work with the tobacco industry, that position is a positive one. Whether either personally or as an Agency you accept that there is a link between smoking and various diseases or that the case is not proven and a controversy still exists, you have presumably not adopted the anti-smoking view that smoking at the very least should be confined to consenting adults in private. As one of the industry's main allies, therefore, we would ask you both in your personal and business capacities to lobby, not only to protect the tobacco industry, but also your own. Apart from the considerable BATCo document for Province of British Columbia 29 October 1999 Agency Presentation Nice ... 23 revenue derived from tobacco advertising, the 'thin-end of the wedge' argument would lead us to predict not unseasonably that once tobacco is seen off attention will then be directed to alcohol, toys, cars, sweets, sugar, butter etc. etc. What are the arguments to be used. Obviously in private you can talk more openly about areas that stated publicly might cause 'product liability, warning bells to be rung, for example on moderation and commonsense. But we can all talk about - courtesy/ tolerance between smoker and non-smoker - freedom for the adult to choose - the role of advertisiag in Informing about brands available, filter versus plain, lower tar etc. rather than about smoking per se - the benefits of voluntary agreements, compared to legislation - the contribution made by the industry to the economy - revenue, jobs, exports Looking at the commercial as oppposed to the industry side, here are just some of the questions arising out of the various smoking issues I have identified that should be considered in the development of existing brand strategies and in new brand opportunities. We shall obviously be debating these and many others during the course of the next few days: cc CD BATCo document for Province of BritiSh Columbia 29 October 1999 Agency Presentation Nice ... 24 Product How can we create product differences in the low tar area. Will image become more important again when products are the same. How can we avoid smokers quitting when delivery levels are at such low levels. How can we reassure smokers of middle tar brands not to switch if/when delivery levels have to be reduced by legislation. How would we treat a reduced sidestream product - without affecting non-sidestream, brands; protecting BAT/Industry interests; avoiding 'health' claims. Advertising In the creative treatment can we provide smoker re-assurance (i.e. that smoking is enjoyable). What elements can be built in to counter social acceptability problems - tolerance, courtesy, copy lines. Where advertising is still permitted without creative restraint how do 'we avoid 'double-standards' whilst still remaining competive. What can be done to ensure adequate brand image/ proposition communication when restrictions occur. What new media opportunities can be developed, ideally exclusively. Do we start a 'tar war' If none exists - if not how do we best educate the smoker about delivery levels. Finally, whilst we will all strive to retain marketing freedoms especially advertising, these may, well disappear around the world, indeed some have not already done so. In this situation, what services can and should the Agency be providing the tobacco manufacturer? CD CO BATCo document for Province of BritiSh Columbia 29 October 1999 Agency Presentation Nice ... 25 By establishing an expertise not only on brand communications, but also on industry issues generally, the Agency can still provide a valuable communications service. HGC/JT/27.5.8./A2 c0 BATCo document for Province of British Columbia 29 October 1999 ARency Presentation Nice ... 22 (MGC) In summary then, how do all these issues affect you our agents and how can you contribute? In an envirorment here smoking issues are becoming increasingly aired in public, it Is essential that these are taken into consideration by those involved in communicating with the public either by selling or promoting our products. Taking the basic smoking and health controversy first, all of us are either smokers or non-smokers and all of us are capable of taking up a position. Hopefully~ by being prepared to work with the tobacco industry, that position is a positive one. Whether either personally or as an Agent you accept that there is a link between smoking and various diseases or that the case is not proven and a controversy still exists, you have presumably not adopted the anti-smoking view that smoking at the very least should be confined to consenting adults in private. As one of the Industry's main allies, therefore, we would ask you both in your personal and business capacities to lobby, not only to protect the tobacco industry, but also your own. Apart from the considerable 00 -P-1 4 ~:b BATCo document for Province of British Columbia 29 October 1999 Agency Pre-s-utation Nice ... 23 (MGC) revenue derived from tobacco advertising, the 'thin-end of the wedge' argument would lead us to predict not unseasonably that once tobacco is seen off attention will then be directed to alcohol, toys~ cars, sweets, sugar, b.tter etc. etc. What are the arguments to be used. Obviously in private you can talk more openly about areas that stated publicly might'cause 'product liability' warning bells to be rung., for ex.a m.ple~ 0!~ ~-oderatiof.d commonsense. But we can all talk about ' . Q-2. co-.,_ courtesy/ tolerance between smoker and-non--smoker - freedom for the adult to choose - the role of adve'rtising In informing about brands available, filter versus plain, lower tar etc. rather than about smoking per se '.'17he benefits of voluntary agreements, compared to legislation the contribution made by tie industry to the economy - revenue, Jobs, exports Above all I think the most important point is to be aware of the threats that face our business. Information. is vital, so too is co-operation with us at B.A.T. and amongst yourselves. We must be prepared to form a united front against what way well be pan-national attacks and I am sure that with such co-operation we ran continue to operate successfully. Gentlemen thant you for your attention. MGC/JT/27.5.Bl co X~b BATCo document for Province of British Columbia 29 October 1999