Research Conference, Sydney, Ist - 5th September
1986
A.L. Heard
Structure of Conference
Last year's Research Conference concluded that a
preferred
format for future conferences would have two parts
- a technical
review of key activities, presented by research
managers/specialists, to be followed by a
policy/strategy meeting
involving only the Research Policy Group (Research
Co-ordinator
plus R&D Directors). During the RPG meeting, the
research
managers/specialists would be asked to consider
issues to report
to the closing session of the RPG.
This format was adopted. These notes are
consequently in
three parts.
1. Technical Review of activities set against
three of the
important business objectives previously
identified as
common to the Group -
W Smoke Quality Improvement
(ii) Response to Regulatory Authorities
(iii) Cost reduction
2. The proceedings of the RPG meeting.
3. The report on three issues presented for
consideration by
the Research Managers:
(i) Priorities
(ii) Duplication
(iii) Competitive Intelligence
and the ensuing discussion.
Aims of the Conference
1. To examine R&D activities and resources in
relation to
Group R&D needs.
2. Critical review of projects responding to 3 key
business
objectives.
3. RPG - to review organisation and strategy for
R&D and
related issues.
4. Research Managers - to consider selected
management
issues relating to R&D and recommend to RGP
proposals for
action.
5. To agree future course of co-ordination of
Group R&D.
BATCo document for Province of BritiSh Columbia 28
October 1999


- 2 -
Technical Review : lot - 3rd September
Business Objective 1 : Improvement of Subject
Smolce Quality
I. Subjective Testing
A pre-requisite to improving smoke quality is
sensitive,
reliable and appropriate sensory and consumer test
systems.
Traditional consumer testing has been aimed at
Marketing
issues and has not always provided necessary
guidance to
product development and innovation. Recent method
developments at B&W, BATUKE and BATCP have
improved this
substantially. Examples include Dupont testing to
guide
development of statistical process control limits
(B&W), a
system to test novel products (BATUKE) and a
postal market
survey system (BATCF). However, the degree of
co-ordination
of R&D and Market Research functions may still
need attention
in some companies.
2. Process Factors
B&W are putting a major effort behind smoke
quality and
improvements based on recent leaf, reconstituted
tobacco,
casings, flavourings and primary process
Investigations. The
emphasis on ammonia chemistry of reconstituted
tobacco remains
high. Additionally a Quality Maintenance programme
has
improved the chemical and physical consistency of
the product.
Souza Cruz are now incorpora-ing di-aamonium
phosphate as a
casing material for quality improvement in so2e
blends.
Souza Cruz' basic programme on curing, processing
and ageing
variables, begun in 1981, is now moving to an
applications
phase with particular emphasis on upgrading low
quality
tobacco and exploring different CLD profiles.
However, it is
important that basic research data will continue
to be
gathered since empirical observations will have
limited
general value.
BATUKE have completed two low quality leaf
upgrading projects,
requested by Canada and Malaysia. The Canadian
project used
findings from the above Souza Cruz programme, as
well as a
BATCF patent, a good example of inter-Company
information
pooling.
3. Chemosensory Research
The Chemosensory Research programme aims to
discover the
chemical and physical properties of smoke
important to sensory
perception, with co-ordinated contributions from
B&W. BATUKE
and BATCF. the co-ordination of this project was
considered
exemplary involving short term staff exchanges,
regular
workshops and good reporting. Practical work is as
yet in its
infancy but is yielding some interesting leads.
Important
among these is the role that CO hitherto ignored
as a smoke
2 U
component, can play in taste perception. Another
important V",
implication for the future is the design of low
tar/nicotine C111
ratio products, the tar perhaps augmented by other
aerosol 10
material to maintain sensory balance. Whilat the
conference
BATCO document for Province of BritiSh Columbia 28
October 1999


zould see merit in this approach to products for
the future,
it was agreed that our first initiative should be
to review
;roup experience in producing low tar/nicotine
products from
:he cigarette acceptability standpoint. BATUKE
will elicit
Tievs of the other CAC countries in producing this
review. if
ve decide to proceed in the light of this review,
it was
suggested that all available options for pursuing
this
particular line be examined looking both
'in-house' and
externally. Advanced Tobacco Products,
manufacturers of
'FAVOR", have made a proposal for working
collaboratively with
3 AT in this area and this will be evaluated
against the other
apti Ong -
4. -Flavour/Taste Modifiers
3 ATCF described a flavour-generating system,
based on the
:eaction of ammonia and sugars and improved by the
addition of
pectin and propylene glycol. The system was
developed to
.a fluence global taste impressions such as
"fullness",
harshness' and "blend character". It can be used
simply to
levelop casing materials or could be developed for
flavour use
.-y reaction with selected tobacco constituents.
Although the
system cannot be patented, it is being used by
BATCF on
selected commercial products. Future special
applications
night be on expanded tobacco, sheet, etc.
3 ATCF are looking for a flavour manufacturer who
can be relied
zpon to retain formulation details in confidence.
Dr. Siqueirr.' proposed that one possibility is to
use Suvalan,
a flavour company owned by Souza Cruz. This will
be explored.
Souza Cruz described the flavour research in
Brazil:
- tobacco-based flavour (terpene fraction)
addition to
blends
- non-tobacco flavours (fruit extracts) to reduce
butt
aroma and smoke irritation
- tobacco treatment effects on flavour
Souza Cruz have used fruit extracts to improve
poor Virginia
tobacco grades and have applied the work to ca 30%
of their
strands. Samples of various flue-cured samples are
available
and other Group laboratories could evaluate them.
Although
=he flavours have been sent round various Group
laboratories,
2 o other Company has used them In the market.
Future Flavour
Vorkshops should really probe Group opportunities
for
application of such concepts and for distributing
samples.
--he Flavour Workshop is seen as an excellent
forum for
exchanging information on flavours and presenting
results on
--lavour research, and the concept will be
continued.
CF\
r__1
L.0
11 P
BATCo document for Province of BritiSh Columbia 28
October 1999


4
5. Filters
Filter research in relatioa to smoke quality was
presented by
BATUKE R&D. In the last four years this has
concentrated on
:mok:tswirlmand there. is muc h evidence,tb:uthis
has a positive
ffe on a oke taste The results fr a rrent consumer
tests in Germany and Switzerland will determine
whether
various filter concepts will be developed further
into
products and should determine the future interest
in swirl.
The filter research area is at a crossroads in
terms of what
direction to take in the future.
BATCF is currently the main Company doing filter
development.
6. Biotechnology
BATCF described the Germany biotechnology
programme and its
potential areas of application. The tobacco
programme which
is not leaf related but exploits the ability of
tobacco cells
to offer unique benefits (a binding character for
special
additives, low nitrosamines, etc) is only just
getting
underway, the major priority of the 2-3 people
working on
biotechnology being on a Government supported
pharmaceutical
p r o j e c t -
BATCF called on Group members to seek areas of
application of
tobacco cell technology since if there are unique
uses of this
technique we.are in a unassailable position from
competition.
Mr. Heard described the biotechnology
opportunities in tobacco
leaf improvements in terms of three strategies:
- the use of current techniques for the commercial
improvement of tobacco, including developing a
gene
library
- develop the technical capability to select
plants by
genetic composition
- engineer tobacco plants to achieve defined
commercial end
points
The Group now has the technological facilities to
pursue plant
breeding, tissue culture and, very shortly,
molecular biology,
and we are in danger of pursuing a fragmented and
perhaps low
key approach.
As a recent development Imperial Tobacco
(Montreal) are likely
to undertake a 5 year biotechnology contract to
increase total
tobacco alkaloids and develop disease-resistant
strains of
tobacco, results of which they are willing to
share with the
Group.
U-1
ON
C:D
BATCo document for Province of BritiSh Columbia 28
October 1999


Mr. Heard expressed the view that if we are ever
going to use
the benefits of biotechnology on tobacco we must
begin a
co-ordinated and more profound approach now - no
one will do
it for us. In discussion, the use of synthetic
smoking
materials was suggested as an alternative route to
tailored
Starting material but suffered the disadvantage of
not being a
natural tobacco product. Also, the use of genetic
maps was
questioned - practical application might be a
better use of
biotechnology rather than concentrating on
fundamental
building blocks.
It was agreed that a technical group should be set
up, chaired
by Mr. G.A. Read, to set out a positive strategy
for the
agreement and co-ordination of the Group
biotechnology work in
the different centres, and this will report to the
RPG.
Business Objective 2 : Response to Regulatory
Authorities
Session I : Mainstream Source
1. Regulatory Mechanisms
In the initial part of the session each country
provided an
overview of 'their respective regulatory
authorities in terms
of who they are, what they are likely to impose in
the future
and the nature of the interaction.
Germany
Three groups interact with the industry:
1. Regional and Federal Government, in general
Health
Ministries.
2. The Verband.
3. Groups such as Deutsches Institut Fur Normung
E.V. (DIN),
ISO, Consumer Organisations, etc.
Regulations relating to tobacco products have
increased
dramatically since 1970. One example relates to
ambient/passive smoking and the introduction of
work place air
concentrations (MAK standards). As far as BATCE is
concerned
the key is to anticipate regulations/ legislation
and be in a
position to respond to it.
Australia
Interaction is with both the Federal and State
Government CZD
Health Departments. A voluntary code exists with
regard to
the CPM and nicotine deliveries. This code is
currently under
review and will involve a change in the maximum
pack printed UN
deliveries and the printing of CO data. The
warning label is (-,,j
also under discussion.
BATCo document for Province of British Columbia 28
October 1999


6
Canada
Discussion takes place between the CTMC and the
Federal
Department of Health and Welfare. Currently the
code is
voluntary but is currently being discussed. Some
local
legislation exists regarding smoking in public
buildings.
Brazil
No restriction at present but this could change
both very
quickly and with unanticipated severe
requirements. Souza
Cruz is developing an ongoing dialogue with
members of the
government in order to minimise the introduction
of
legislation.
United States
The industry deals most frequently with Congress
and the
Federal Trade Commission on issues related to
stainstream
smoke. The FDA does not assert jurisdiction but
would if any
drug-like properties were to be claimed in
advertising. The
industry's relationship is unavoidably adversarial
due to
debate over causation. Congress would react
strongly against
a claim of a safe or safer cigarette and would
precipitate
strong legislation.
The FTC's involvement has primarily been in
regulation of
advertising. . They are currently contemplating
termination of
cigarette testing due to budget pressures and a
lack of
support for the significance of delivery numbers.
There are many regulatory issues now pressurising
the
industry, with additional taxation and fire safety
standards
those most likely to be introduced.
United Kingdom
Principal interaction is between TAC and the
Independent
Scientific Committee, ISC. The ISC advises the
Minister of
Health and works closely with the Department of
Health and
Social Security. The ISC will be producing its 4th
Report
during 1987 which will deal with the following
issues:
Tar quality, biological activity, epidemiological
analysis and nicotine
- Relative risk of different products
- Passive smoking
- Trends in smoking habits
- Action to combat smoking
- Additives
- Research needs
'Ln
all
U4
BATCo document for Province of BritiSh Columbia 28
October 1999


Overall regulatory authorities were generally
asking for
reductions in tar and, in the Middle East, for
reduction In
nicotine. Carbon monoxide appeared to be of less
interest.
Regulatory authorities and anti-smoking
organisations had
spent much time examining the role of compounds
such as
nitrosamines and polycyclic hydrocarbons, but had
not been
able to come to any firm conclusions beyond
advocating further
research.
2. In terms of future scenarios, the following
topics could
become issues in the future according to Dr. R.E.
Thoraton::
1. Dis-dichloromethyl ether in cigarette smoke
2. Radioactive compounds
3. Free radicals
4. Self extinguishing cigarettes
5. Substitutes
6. Heavy metals.
3. Control of Smoke Components
The Group knowledge on controlling both major and
minor smoke
constituents was reviewed. Important means of
reducing
components lie in agricultural practice (or curing
in the case
of nitrosami'nes) or in filter ventilation or
tobacco weight
reduction. Possibilities for selective filtration
were
reviewed. Stem treatments including shredding can
alter
delivery of specific components, eg NO X or CO.
There was discussion of what specific smoke
components need to
be reduced or coatrolled in the future. There was,
however,
some lack of agreement on this point and the
matter will be
referred to the Scientific Research Group for an
urgent
in-depth consideration of this very complex
question. It is
imperative that SRG produces a prioritisation of
those
components backed by a rationale for each.
Resources can then
be allocated.
4. Biological Testing
Probable trends in the biological testing of
tobacco products
were reviewed. It was pointed out that
carcinogenicity is a
multi-step process and that the Ames 'in vitro'
test only
identifies potential carcinogens (on the basis of
mutagenicity) and that additional tests are
required to
identify if this potential can be realised.
Southampton is
currently looking at the possibilities in this
area. It was
also noted that legislation may require the
application of
multiple tests.
The in vitro Ames test is currently used in
Hamburg, Montreal
and Southampton.
BATCo document for Province of British Columbia 28
October 1999


8
5. Product Development
BATCF described their project U4 which has the
following
objectives:
1. To reduce the Amen specific activity of current
products.
2. To develop prototype products with
significantly reduced
Ames activity.
The approach is based on the results of Project
Rio but
further basic research is being undertaken. One
new finding
of note is that high levels of ventilation
significantly
reduce Ames specific activity. Previous results
indicated the
reverse.
Both ITL and BATUXE are working towards developing
products of
low biological activity based on Ames testing for
their
markets.
C)
C-
BATCo document for Province of BritiSh Columbia 28
October 1999


- 9 -
Session 2 : Sidestream/Ambient Smoke
1. Possible Scenario
Epidemiological studies underway in nine countries
on passive
smoking will probably be interpreted as giving
adverse results
(risk ratios greater than 1) although most studies
are so
crude that they cannot distinguish between any of
the
possibilities (no effect, positive effect,
negative effect).
Nevertheless, this will result in further
pressures on the
industry.
In any event, false positive effects can be
explained in terms
of biassing effects, notably the misclassification
of smokers
as non-smokers. It is important that the
shortcomings in such
studies are pointed out.
However, the IARC (1986 Monograph) says that where
there is
smoke there is risk, and the ISC may ask the
industry to
modify or reduce sidestream smoke. Social issues,
particularly the pressures to clean up the
environment
resulting from the 'Green Movement", are likely to
override
any scientific arguments and lead to further
restrictions in
smoking.
2. Ambient Smoke Monitoring
BATUKE R&D ambient rooms provide controlled
facilities to
investigate concentrations and decay of smoke
components, and
how these are affected by cigarette design
changes.
Nitrosamine levels in ambient smoke are less than
I ag/litre
and only detectable at unrealistically high smoke
levels.
Ambient levels can generally be calculated from
sidestream
emission values although nicotine presents an
anomaly in
having lover levels and faster decay rates than
other
components.
Nicotine and CO levels measured by BATUKE R&D and
in the
Verband in familiar environments are 1/10 or less
than TLVs
and lower than other published levels.
The TAC is conducting other real life monitoring
as is the US
Industry Group.
The BAT/Gallaher study at Harwell with labelled
iodohexadecane
show vaporisation from particulate.
The analytical studies by Philip Morris on
environmental rooms
(which is in agreement with BATUKE results), and
on real life
environments will provide data for the study being
organised _
by the Verband. No epidemiological studies as such
are 0
planned by the the Verband and the question of
dosimetry -4
studies is being examined. C.>3
LTN
Future priorities are to rationalise
sidestreamlambient 01
discrepancies and to investigate the activity of
aged ambientC-1,4
smoke versus fresh sidestream. 0
BATCo document for Province of BritiSh Columbia 28
October 1999


- 10 -
3. Low Sidestream Products
Suppliers' cigarette papers which reduce visible
smoke do not
decrease irritation and odour and have other
disadvantages.
However, Canada vill conduct a very small market
research
exercise based on low visible sidestrean with a
Kimberly-Clark
paper. Smoking properties have been made
acceptable with a
black tea extract.
BATUKE R&D has shown that nicotine accounts for
part of the
sidestream irritation. Stronger acid paper
additives can
reduce nicotine in sidestream and will be further
investigated.
Reduction of the total amount of tobacco burned,
with its
accompanying reduction in total sidestream was
agreed to be an
appropriate general approach. Reduced
circumference seems to
have fewer disadvantages than the ash problems
from high
expanded tobacco levels or high inorganic
containing
materials. Possibly a combination of the latter
two may
provide a more normal ash density. It was felt
that product
development activities on reduced circumference
and reduced
tobacco weights provide an evolutionary approach
to sidestream
reduction and should continue.
No immediate marketing requirements nor
legislation on
sidestream yields are foreseen. Total industry
approaches
must continue to address the social issues.
Project EMN
W Proposal
Development of a cigarette perceived as safe by
our
critics would ensure the coatinuance and
prosperity of
our business. ITL believe that vhilst this long
term
objective may come to naught, it should be
attempted.
As an approach ITL believe that identification, by
reference to external sources, of undesirable
components,
is a first step to reduction to acceptable
threshold
levels by product modifications.
Short and long term bioassays would be used to
assess
progress.
Finally vitamins and anti-oxidants could provide
protection as the mechanisms of disease reduction
become
better understood.
This approach should improve or at least
neutralize the
hostile public environment and protect against any
competitive disadvantages. c:::>
Cr\
BATCo document for Province of British Columbia 28
October 1999


Discussion
The Canadian proposal refocuses the issues with
which the
BAT Group and the industry have struggled since
the aid
1950's. Progress over the last thirty years has
been
evolutionary and, in the concensus view, would
continue
to be so. Difficulties are seen in obtaining a
reasoned
external view on what smoke components should be
modified, let alone any acknowledgement of
cigarette
safety. The view was repeatedly expressed in
discussion
that goal posts will change and that this applies
even to
accepted views on thresholds.
The SRG will develop a consolidated view of
priority
components for smoke reduction but will
necessarily be
limited in time perspective and we can expect the
targets
to be reviewed and updated on a 'rolling basis'.
Assuming that product modifications can be made to
achieve some of these component changes, there
remains
the question of biological testing. Whether the
chemical
changes would affect test results is uncertain.
The
types of test would be those likely to be
suggested by
regulatory authorities, yet these may be of
dubious
validity.
Despite these difficulties the Group programme
should
address these issues. At present, our policy is to
:upport external research on biological testing
systems
nd on iftechanisms of disease but ITL would like
to see
'in house' effort increased.
Two alternative strategies which might (a) be
required of
us by Regulatory bodies or (b) be the basis of a
product
viewed by our critics as safer were discussed. The
first, which is also evolutionary is to continue
the
reduction of tar/nicotine ratios. The technology
exists
to provide significant changes but the problem of
providing acceptable smoking quality has yet to be
so lvid- The second, which is revolutionary,
emphasises
deve opment of alternative nicotine delivery
systems.
Both assume endorsement of nicotine but, assuming
that
this is achieved, the latter is the more likely to
be
perceived as safe. However, the former offers best
prospects for a practical approach.
In summary, the Canadian proposal received limited
endorsement from the Conference. Whilst the
ultimate
goal is desirable there is exists no recognised
route to
product modification to achieve it. Certain
aspects of
it are already, and will continue to receive
attention
particularly in the area of reduction of specific
smoke
components. Allocation of Group resources must,
however,
consider both the cbaages we may be asked to
implement in
a two to five year time-frame, and implementation
plans
fo r the alternative strategies.
C-1)
-4
U4
BATCo document for Province of British Columbia 28
October 1999


- 12 -
Business Objective 3 : Reduction of Product Costs
1. Review of Options for Cost Reduction
BATUKE presented a list of options and then
presented details
of several of these. One example is the High
Velocity Dryer,
originally developed for expanded tobacco, which
can be
applied to lamina and stem drying. The advantages
of this
dryer are in the use of high temperatures and
short residence
time. Another cost saving project (Project Life)
increases
the expanded tobacco of a full flavour BATUKE
blend from 8 to
12%. By selection of cigarette paper it was
possible to make
this change without significant change in sensory
properties.
2. Low Density Cigarettes
Wills outlined their progress in the production of
low density
cigarettes. Various filling power improvement
processes were
highlighted that had been instrumental in
achieving these
density reductions while maintaining cigarette
firmness. With
the exception of G.13 most of these processes had
been
developed by Wills or the BAT Group.
The ensuing discussion highlighted Wills' concern
for density
reduction because of the Australian excise system.
This
concern for density reduction was not shared by
other
companies such as B&W and BATCF who put a higher
emphasis on
cigarette quality. Souza Cruz is becomiug more
concerned with
cost aspects.
3. Particle Size Studies
This subject is being pursued by both Wills and
BATUKE. The
Wills project investigates the effect of particle
size on
physical properties, such as filling power and
loose ends.
Ways of maintaining or increasing particle size
were
considered; these varied from changes in GLT
through primary
to modification of the making process. One of the
concepts
outlined was that of producing a
controlled/restricted strand
length tobacco. This concept went hand-in-hand
with
modification of the maker to optimise the benefits
of this
concept.
BATUKE are also studying some of the effects
observed with
different particle size tobacco strands on
physical properties
of the tobacco and cigarettes. The outline was
given of a
large project being carried out based on altering
threshing
mode; tobacco is being threshed under soft, normal
and hard
threshing conditions. This work is being carried
out with the
assistance of GLT in the US, Brazil and Zimbabwe.
In order to ensure maximum co-ordination of this
work,
Dr. G. Book from BATUKE will visit Wills for two
weeks during
October.
BATCo document for Province of BritiSh Columbia 28
October 1999


- 13 -
4. Comparison of various stem processes
The impact of various stem processes on final
product
characteristics has been studied in considerable
depth by
ITL. This project was jointly run with BATCF and
B&W-
Canadian lamina and stem was treated in different
processes in
the different countries. The processes included
the STS
process, shredded stem, and the two modifications
of high
humidity drying. The filling power improvements of
the
different processes were listed along with the
investments
costs. By optimum choice of process for stem and
lamina a 23%
cigarette weight reduction could be obtained.
Potential
yearly savings were presented. ITL presented their
logic for
adopting the STS process developed by BATCF.
In discussion it was explained that no evidence of
harshness
was observed on repeated trials of the STS
product.
All this work gave a note of caution that the
filling power
improvement of some processes do not translate
into the
expected cigarette weight savings.
A German view on a comprehensive approach to the
most
important working areas in the field of Research &
Developuent
was given, aiming especially at the topics:
- improvement of smoking quality
- improvement of acceptance of BATCF products by
the
consumer
Resulting from this an overview of different
process
techniques aiming in this direction was given:
development and production of RTS/RTF and the
effects on
cigarettes
development of the STS process
Jet process for improving filling power
The activities for reducing density during the
last ten years
was shown.
An overview on the technology and know-how
transfer from BATCF
to other BAT companies (Switzerland, USA,
Argentina,
Australia, Canada, Brazil, Denmark, Malaysia and
the UK)
including the above process techniques was given.
5. Waste Utilisation
BATUKE presented details of their
extrusion/expansion waste
tobacco utilisation project, Project Deer. An
incentive for
this work was the need for a reconstituted tobacco
process
suitable for smaller companies. It is an extrusion
process
using tobacco waste, starch, binding and agent and
humectants. This mixture Is extruded through a
standard Ur
BATCO document for Province of BritiSh Columbia 28
October 1999


- 14 -
commercial extruder which allows for expansion on
extrusion.
This product is now undergoing biological,
physical and
sensory testing. The forecasts of cost of the
product of
Project Deer seems to compare favourably with
other methods of
reconstituting waste tobacco. The Additives
Guidance Panel
see no problems with this product.
The meeting considered that there should be a
comparison of
the various options available to the Group for
reconstituting
waste tobacco and B&W offered to do a desk study
to include
technical opportunities for product improvement
(notably smoke
quality) as well as cost savings.
6. Expansion
Wills detailed the history of G.13 use in
Australia and
summarised the advantages and disadvantages of
G.13 use.
B&W gave a paper on their experience with DIET
discussing the
various formulations that they have investigated
and the
results to date.
BATUKE presented details on APEX. The need for a
Group
process for expansion was agreed at the R&D
Conference in
1982. BATUKE, having tried a large range of
chemicals as
expanding agents, have found two with synergistic
effects
which give greater filling power than either G.13
or DIET.
This product has beter physical and chemical
properties than
DIET and has' less effect on the taste. BATUKE
plan to produce
a small factory plant next year.
The session concluded that no important approaches
to cost
reduction were being overlooked.
U4
Cn
Q
BATCo document for Province of BritiSh Columbia 28
October 1999