Proiect LOCO THE OBJECTIVE OF PROJECT LOCO IS TO EXPLOIT THE POTENTIAL EMERGENCE OF CARBON MONOXIDE AS A COMPETITIVE OPPORTUNITY. The perception that CO is believed to be one of the harmful ingredients in cigarettes has slowly escalated to a level of 11% of smokers. While the unaided awareness of CO is significantly below that of tar and nicotine (54 and 57% relatively) , the declaration of this ingredient on the sides of packs will enhance its prominence. on an aided basis, 35% of smokers have heard about CO in cigarettes and, among this group, over 18% believe that it is more harmful than tar and nicotine. No behavioural data is available at this time. However, the circumstantial information indicates that a group of smokers (size to be determined) may be inclined to switch due to Co. More specifically, there is concise documentation on the effects of CO in the body when it combines with hemoglobin. The affinity of carbon monoxide for hemoglobin is 200 times greater than oxygen and tends to reduce the oxygen - carrying capacity of the blood. Carbon monoxide is slowly released through the lungs during the night and does not accumulate in the body. Q4 C) k-N QM 0- BATCO CONFIDENTIAL- CATEGORY 1: MINNESOTA TOBACCO LITIGATION BATCo document for Province of BritiSh Columbia 2 November 1999 However, in the presence of smokers with heart disease, where the oxygen sucply to myocardial tissue is already impaired, the intake of car'--on monoxide may be an aggravating factor. This would constitute a key target group for a reduced CO product. If we take this analogy one step further, the indirect promotion of CO reduced aroducts for smokers with cardiovascular disease could be achieved by publication of subject specific articles in medical journa-ls. While we know that doctors will scoff at the notion of smcking, the early history on Medallion is an apt demonstration that they may recommend this product variant, if their heart patients insist upon smoking. The process of CO reduction is achieved through filter technology and ventilation. These are non-oroDrietarr enhancemencs. We would therefore anticipate that the branding for this Project will not be free-stand-ina and will, like light cigarettes, take advantage of pre-existing trademark credentials for market success. As a consequence of the above, we will plan on some preliminary product explorazion at 3 tar levels (representing our 3 trademarks) tL, determine how efficient we can achieve CO reduction while preserving the smoking characteristics of the cigarettes. (-,4 Lr, IrD t-71 BATCO CONFIDENTIAL- CATEGORY 1: MINNESOTA TOBACCO LITIGATION BATCo document for Province of British Columbia 2 November 1999 Coincident with this activity, we will also secure data on the potential magn-;zude of the switching behaviour due to the declaration of CO and determine the resultant demographic characteristics of these smokers. If further shor-: term activity is warranted, brand development will follow with a possible target date of August 1990 for test market implementation. Project LOCO is a direct personification of DWi - a project dedicated to the selective improvement of cigarette products on perceived health and safety issues as opposed to one single solution that attempts to represent a panacea for ever-lone. AC/jc February 24th, !989 40 ~.P4 C) %-14 Un BATCO CONFIDENTIAL. CATEGORY 1: MINNESOTA ToBACCO LITIGATION BATCo document for Province of BritiSh Columbia 2 November 1999