PRIVATE & COI-]F-.:;---NTIAL.
TOBACCO DIVIS:ON BOARD OF IIAITAG=NT
MinuteE of Heeti-izmz held on Tuesda7. 31st JulY
1973-
Present: r1r. P. Macadam (Chairman)
I'l -- .K.E. Haines
Mr. C.H. Stewart Lockhart
Hr. P. Sheehy
Mr. E.J. Symons
In ~'ttendance: !,L- . B.G. Pearson (Secretar:,-)
KbS ant Nr. J.T. Husbands
~1 r. A. D. ;,!cCo=-ick
~L-. T.A.H. Slac-.-
A'--=o =--Iten~-ed for cart of fi--S-~ t-..,o
items:
E,7. R.P. Dobson
Hr. P.D. Tind-ley
1-1r. T.E. Da,,ies
Mr. F.W. lonsland
F.J. Op'l e
10/1. T:.,bac-
D-r. G--=en tal--4- abca-,
~i- ' . ' -7
-c-acc- S'-.Z--- --,-~es ::a-.- e synthe-,--cz =
those f=- nat-----
=-ter~-=.-S -=~:,c-'- ns -.u--,-.D. A---"
s-ubstitutes re-2--r-red- -,o
in t11-.= m-lute are fibreZ.
Substi--te-z ma, mer- at a cl-e-n-o blend
cons---tuent
'
(-'FolyS-.--ep and z-aa-.15
Sr May aim ~zt a S. ! H. con-,:,-ibut-':~n:
an'4 Cc---rtauld'~. Eo---an's -and Gailah-er's
produc-,-
C---rel -'s esse-,---,ial--.,., -=indium car---
ox:,-,qeth,1-lcellu-- --- --e
incr-n--c ~aa-i-.-'ves. is oxid--'--~ed
cell---'lose.
s c~-- cium al-~-inate fibre. Courtau!"~ is
7:,o:)a*-1-7
re--ren=-:-ted cel-~---Llose. Gallaher's is
si-nilar :1T.S.".
C". ~1- z.1-i a cell-,ilosic bin(ft=7-
Ccsts ind' cate,~ about IOCZ/lb. for N.S.1'.. and
for C -7-Tel -u--der 4 '/lb. for Batfln'~:e.
Oz
T-'--e f--'---st 3atfl="-e --,-.~az inorganic and
non-combus--,ible b-=. had
Door f-'llinz po-...,er, affected the tobacco in
the ci-gare .-es,
and s1n:--.-Ted poo;-- resu----z-: in biological
tests. A foamed
version has now been nroduced which has increased
fill--*---.~
pc,..!er =-d reduces TF7". -bu-1 is combustible.
Conscmer tests
are no-.: being c:)nduc~-i
The Hun-,er Corp=-'ttee -)-.obabl-,:.- la-- down
the relevance of
certain tpsts t:) the Smoker. The Committee is
unli1-.-e-!.--- to
az-orove s-oecific ci.sa--ettes or materials, only
t'ie appr-,-,-ed
tests =--d -.1le relati've im-Lortance of each- It
-4Z 1--kc-17
tl~at t' --2 tests affect goverr-ment z)olicies in
other
'
cc !~tr
es. 5niesSed that t1he Committee will repo7-
b-.:- the =-nd of "74. -1c t! i-D.L. and we and
preZ--=abl--. CD
0-
--iers z- ;-"Id
- - - ic e cG=:'eted tne required tests 't-:-
t1le-~. CD
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We are not behind others _-'n research but are
behinrl on
productive capacity, althoii.;Eli 1..-e can buy
from others if
necessary.
The PRT-71 project might lead to a hybrid
nor--tobacco/
reconstituted-tobacco material. --t is probable
that B.A.T.
now has the technology to inszal a plant for
reconstitution
of waste tobacco, perhaps in 37razil. Dr. Green
thought this
could well be profitable that it should have
sufficient flexibilit-- built in t_- take
advantage of research
Z'
results indicating produc7 chunczes.
1 C/2. World Leaf SuDpl-,,
M-r. WalmlsleZr re-corted on -.-,e shor-,age of
f-sod quality
flue-cured and oriental tobacco, exacerbated by
t_ae short
1972/73 croPs, la--gely du-= t2D c3nditionc.
The long-,erm total worl,~ -'e~f sil-Guation
~-,,es cause
for concern. G_-owinc.- i~ nD, pace with
c=sumption.
t is predi cted that b:;- _0 of the ccn~snts oi
cigarettes ccul,7 necesza:,:.--- mater
The IW2/77; crop shl:>r7a~zeS pr--ces on e-:--rage
bet-..-;een
25 ~ and 1'55.~ in USZ telrrls.
The U.S. mar-t-et c-3ened a The cro-o iS tnan
last year 'out prices are alrea~_-: 71~', and e.--
ec-e~ to
-P
increase (althouza a c~ -------- - or --eneltz,
etc.)
There are no avaflabie _=n-7 counti-j ;-Ind is
1- a 11 -d.
expected ~..'iat vi ~uall
c=p w- so-
The Canad-iar_ cron is _S e-_,~-oected t'i=.7 the
low
domestic s-.ocks ~-,ill
As regardS the B-'.T. ~_=-:-77 from Canada, Z73cks
are
generally ~-ood and, ouz7 cc=-- --a-.- r"-sen as
m'_',cn as our
ma-in competators. T-1-e L_5. =_-a are
and add_~t-Lonql pu:cchases 7ade from countries.
The use of Brazil tobacco i-r-zre-~.Sin:17.
The short-term outloo'l- is o-it=`=-,~c.
increase-4 acreaE;es
- 7
are planned in se-:ieral =,-d prIces can be
expected
to level off in 1974. ~,'e a--=- Z~___ saleZ to
Imperial
and others.
However, in view of the l,__n,:.;-t= -...-orld
situation, growing
will be developed whereve:, i-E; _~_= feasible and
econom3_c, e-g-
Nigeria and Ghana.
U.K. profi-. on leaf sales fS _-'-_-::-nZinQ and
is about
f2 i million annually.
Biolop:ical Testing of Bra_-_~s
A discussion on Dr. Green'z -c- 'Ot"n JulY ws-2-
7_.Ost-P0ne_ CD
until the ne%t meetin;7. CD
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10/4. Travellin~z Allowances for VisitorZ from
India. Pa::istan and
Ceylon
10/5. Bangladesh No.i
Consideration of Hr. McCorm-.i.ck's t-.-ro notes
of 26th July was
deferred until the next meeting.
(M.-. EcCormick
10/6. Zaire No.1
Reference: Kr- Sheehy's no-.e of -26th jul.-;-
It was agreed that Mr. A.: -.,T. Ch---':;todolo be
appo.-Lnted No.'
in Zai--ne to replace Mr. -.-inc be 7--ansfe--red
to
Millbank.
It was further agreed that shotdd the appointment
not prove
successful or should Za-Lz-_ fold u-:), I'L-.
C!=Stodclo can
return to ILillbank as a leaf AdviSer, his
-,)_resent nost, on
a higT,_er personal tar.Set-.
(17"Ir. S-eehy Loc"Cha.-t
10/7. Brazil - Green Leaf Th_--_S'-1'?--_-
Reference: TAD's note o_~
It was no-.ed tha-~ t-e CFC on "7t__--_ Jul., 13-7
Cr.Z28.1 million (L-1,8141:-~7_~01~ fc-- L,
g-reen, -- e.s-f
lines.
In vie-.- of the e_-.~ansilon ~;f b,_-Uil 7'ie
dcmes-. ~_~_ and t'-
export ousiness,
(1) 2 f,.irt_he_- --:,ee-,i leaf lines of
Cr.2~,JLL.'-) illion OE':~:::2,0,_
m
and
(2) fur-,her investment cf Cr.Z,1. 2 millic.-_
7 for previously aprj=--ed line- S, aris= iro-.
2.r-creased costs.
(11r. ;",,;.zbands _':;,.irdon
-7--ice
10/8. Brazil - Skol-Caracu
Reference: 1'1r. Price's note of Jul-;-.
It was ag PC tLat -on-ufnental
greed to recommend to tae , -
--3) as itZ ~'- -e of the
subscribe Cr.ZLL.9 million (-,2",,C -.ia-
capital increa--e in Skol-Ca--acu., '---.e before
'-3t,'--
-Fc
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10/1). Ghana No.1
It was reDorted that Mr. N.J.I. S'tourton had
acce--ted the
post of No.1 in Ghana from aid-Oc-,ober,
reiplacin;rz
Mr. Marjoram, who will be transfer-red to
Hillban~-, and
this appointment was agreed.
(Mr. 1,1r. Ste%-Srt Lockhart
Durfb a:,
Mr.
10/10. r'TC Minut-es
The ?EC 1-linutes of 26th July were noted.
110/11. NEC
Consideration of 1'1r. Slacks not-e of 30t-'_ July
i-.7aS deferred.
!0112. Tobacco 2-oard Neetin!z
T' was notecd t-, the mee-J.-_S du~ :)n Tues'-2.y,
L-a Dc-ff-e-
instead be 'fteld on Fic-r- ay, --t Oct-cer, at a.
10/13. _R-ot],,:__an= T-ter-~_-,4cna'
.1 r. Ste-,-.~t Loc!~_'-_-rt _repc-_-ea t'_-
---el, J,Ta:-e~~n~
D-rector. and i,,cms, ind-~is-' 27, Direct----
jr-=- r c 1 i
Rot.-_nanz lnternaz_ion_~!, Honaco, ~__e vis:.-=E~
him
at _.~,D p.:n.
-10/14. Tanzan_~a
.1 r. Saee_--y reTported t':.at n letzer :iad been
rece_~-.r from tl,.e
Natfonal Develo-cment Corporation 'n
Tanz;:~.r__Ia. __ie-y requesz
'-ia- b- 's~ jazi r -!7
, 1",75 ...-e onl, -1-r-ance
t
Di_-ectcr. This %,ould be an i==s4-ble Sl`tuatic-.
9
:,)resent az'reementu can be alterec :nly :-,utual
C'=e_nt.
~C/
It was a~'reed to propose t'-a-, Silo - , , -
U-L :)LI7,- OU-
.1 r. Shee-.- will jut u-j a ncce.
10/15. Budcet S=aries
Hr. S-:-mons tabled forms:-
A = sui==ry of e-ach compan-.- w'nen .:.udget
received for
.,er--- zeam and E
Sy~ -A accomL-- n-, notes
B = summiaries b-'- areas of in Forms A; for
'tobacco
3 oa--d.
C = of -7--=s 3: fcr Toba:co BcaT_` and C~7-_.
These fo-_r:-.z wcu,11.4 -resent a
conFz:---;~,:a-Lea 7,icture --f totacco Lj1j
CD
commanies at t'-,e ea_-.-_ year. CD
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-'-e first set of forms can be prepared by end of
c.=~tember and can be considered at the ne-x-I
QPIR me-aling I n
C__tober.
(11r. Symons
10/16. --=-=-a1 Advice
was agreed that it was not necessary for Kr. i
'crini to -led
-end each meeting of this Board and tha- he co,,~"
be ca__
In for advice as necessary.
(,,T-r. Davi es
10/17. C-m-Dan-T
Tobacco Board reiterated its view t1ia-, zhe
-.ain the goodwill in the let-Uers B.A.T. '---zt
t1-a-.
froup r-a-me is c1hanged to somethinE diffe_-_n-_
t-'- _:zaCr_1:
7
sliould retain the initials B.A.T.
FLacadar,
0/1~2:. n-,er-n-ntional `,ra-nds
__~-.zference: Hr. Slack's nc~e of 27th Jul-.-.
of se-Darate 1_isc,,-,ssJ_ons too', pla:= on
,_z-,Jec-. some of which were a-tended 'e-srs.
S-".:= ~n_
-j-at
As a general commen', it was fe-I
Dun_-_':_1I were delayed far too lOng'; th~-: we
"~~een
-c- o a marl~-e7 created by a =_~)et-7:r: an-.-
1 c7j_II, t
ore-gent efforts ar- too frapment- a_nd -7-~ a
plan is needed.
_:-_7nen7.7_ on rarticular su',-.4ects were as
f--__-CWs:-
or-it-
must be ret-U--ned to the Tc-:n_.~:co ~-_L-_ -'or
o --a -iorld-wide lincluding I.E.D.' _-arke-:_-_-
s= ,tegy of interna-lionsl brands:
e,,mendi-u-e, met,ods of =7-,ack.
11 acadam will as'.': Mr. Short to pre.zent t.--
~;_-acco Board a plan of all the main
br?-nds, covering present plans and -Lnd
~::-_-posea
s-rategj and prio-rit4es. A sk
:7. eleto- shoulf rea_f-
w--,.,in 2 weeks. This Board can then consid-zir
t.',.e
strate&,j and how it is to be effectea.
Fi_-.rther t1lought will be given to a Tc- '- a c
c o r
F,?,:,___eting Committee comprising Mr. Ea:adam.
7_-e
%Iar' et-*n, Director and territorial Directo-~s.
-..-ItIi
HeSsrs. Short and Doran. The Commi~tee aculd
on!-.-
se-. strategy and need probably meet qua_--.er.Ly.
Be-eath the Tobacco Board muzt be a =rong
Marlcetin!z Services liaising with all
c:)Trr)ar_i-_z
ncluding I.E.D., on internatIonal b--,=--ds. ~ r
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BATCo document for Province of BritiSh Columbia 27
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Bra-ad Managers snou_1d present alte--matives to
the
Tobacco Board for decisions. Effective control
must not be vrith I.E.D. just beca-,~Se they
control
the U.K. factories. New interna-,ional brands must
not, as suggested by Mr. Slac3k, be 'landed over
to
I.E.D. for develo-oment at the earliest possible
stage, although 1.E.D. will naturally continue to
control their own brands in their o-.-in way.
(3) Consideration was given to develocment of a
low tar
delivery long-size filter brand. It '.-ias noted
that
R. &: D. have already produced a G.~5 delivery
blend
but I.E.D. were not interesteQ. _r "7!-:Ls,
howei-er,
agreed to record the strong feeling:: that there
is
a market opportunity for B. & H. __-fry^ rdid.
(4) Consideration was given to B. & H. Lu:cury
Blen,2
(CHkRLTODT) and B. & u. de Luxe 7_ezir~-a
CHIB=NIA).
follcl,iin=* Doints were
(a) Gailahers have tested both brands --I T 7.
an,'J
understood that CKA.PLIOIT. was p_-e:=_:--2d.
(b ) CF_~,PLTOIT had been a= -reed -for -ase and
we
no'. t ce deterred 7~-e -fact t1lat
,:_Ianers are now
ezoi 07 f0-- HI13EIR1,L-A
(Iargey, felt, "ecause o~
i_ I
-ie cress)
C
a la:-e d
the_--efore -.-iish tl,-~ uZe it, part in
3 'e.s. duty f_-e~. C*'annel !~'ands).
d) it -L-1. nowever, be IMZOSSI:).L~ r-e~_7~ t"'e
'de s`_ould st-,*c'--Z ~0 n-d
The one brand --e CH.ARL7_'_, -r2y becal-e
-J P_ C2. n pre_e:_-'_-ei ciir also
There is no need to te-st both in i.-E.D.
if -GI-e tu-.derstand1n~; of Gallahe_-'S test
results a.S
correct. If the blends are tes-za-d in I.E.D.
markets,
then they should also be tested -i- sucli markets
as
Switzerland, HonL- -Wong and Mala-a.
(h) --IB:-?,N1A board is free7y availa'-,!-? but
ClikRLTCIT carnct
~e Dut on full -produczion -until be~~_-use of
board shorta,es.
(i Th e 20 mi 11 i on on ord; er. _f _-~r -Shi ch~
b op _ 4
r d
available. and whic-'a are due to b-- -ready b-
the end
of October, can ce usef_ by I.E.D. =---d the Far
East
are prepared to -..;ait -zitil the ma_rketu i~
establis'Zied.
_r %..as a.,-reed t,iat:-
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BATCo document for Province of BritiSh Columbia 27
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7
C'Lkr-LTON should be our answer at Intennational
size (95 nun.) - Messrs. Short and who v.,ere
present, agreed.
(ii) 711e exact Gallaher test results snould be
obtained.
(iii) A-1l other possible sources of board s--ould
be
e-xmiored, including Gallahers and the nen-
5 Cont-
(iv) Hr. I'lacadam will t-:r to get Mr. Doran's
immediate
agreement but, failing tI,-at, will agree to
mar--,et
being conducted.
~'-',acadam S 1 a c1'
Snort
Do rn.-
Hr. Brown
Res-oonsibilities of Tobacco
Reference: ?Iiinute 9/5 of 24.t1h jul-1.
1-"-. lqaca,~,= reported that the C1"C' t',-e
subje.- to certain changes.
~-e approved doci=en-o attacIie-f -,-iese
-----nutues.
(Sec---Zary
Dlafb a
c
-:7. Ca I e
L7. ee en
S-
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BATCo document for Province of BritiSh Columbia 27
October 1999