VISIT TO PHILIP MORRIS R&D CENTRE
RICHMOND, VIRGINIA
30 OCTOBER, 1980
PRESENT: Dr L C F Blackman
M.r A L Heard
Dr R Seligman - Vice President R&D
Dr T S Osdene - Director of Research of
Extramural Studies
Following an initial approach by Dr D G 'Felton, arrangements
to spend a morning at the Research Centre were finalized when
we met Dr oadene at the 34th Tobacco Chemists Conference at
Richmond.
Following a brief walk through the R&D tower block, we had a
general discussion on non-commercial matters - mostly concerning
smoking and health, though other points of interest did artse -
The following is a summary of the main information obtained:
Oraanisation
According to Dr Osdene, It took some 6 years to bring about
the present very close Integration between R&D and the Marketing,
Production and Leaf operations,- it clearly helps having
central R&D located at the very Centre of t@be business.
There is also very close liason between the Ricbmond R&D centre
(550 staff) and the similar laboratories In Switzerland and
Canada. Though the latter laboratories have e high degree of
Independence, there is complete management interaction and
complete integration of main progratmes wItb those at the
cent-re. When describing this, Dr Oadene clearly could not
resist making the comment that, "We always laughed at the way
Southampton seemed to be In competition wit@h other SAT
laboratories, rather than belonging to one company".
Outline of the present Organization Is shown In Appendix 1.
Dr Oadene's Research and Extramural Studies (the latter being
an aulphernism_ for smoking and bealtb) represents the main long-
term research thrust and, accordingly. has a 'nigh ratio of
scientists -to assistants; 8 of the scientists are on a
Research Associate dual career structure.
The strength of the total research capability is illustrated
by the fact that 131 of the staff were registered to attend
the 34th Tobacco Chemists Research Conference. Another pointer 00
is that they have six mass-spectrometers. L.04
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lechnigal Services Division
We saw from a distance the impressive new building construction
that will house the recently formed Tobacco Technology Group.
Dr osdene said when it is ready early next year, Product
Development will be transferred to It from out of R&D. it
seems that the main function of the Tobacco Technology Group
is to provide stronger support for the overseas operations.
Accordingly, it Will have a broadly based orgaulzation as
published earlier this year (attached in Appendex ii). (Paddy
O'Brien will be In the manufacturing section an Director of
Support Services.)
Dr Osdene suggested that there is some concern about the high.
depreciation costs of the now building. We understand that a
further 40 staff are currently being recruited.
Dr osdene explained that the new Group is part of a plan
to intensify their world-wide control from Richmond: "The
remaining Fiefdoms will disappear".
SmoXina and Health
officially this activity does not exist; but in practice there
is a major research effort. We were given some information on
the understanding that we do not divulge it further. (I know
also that Dr relton last year was given a quite detailed
description of some of the work.)
we were told that there are 20 PhD's and 8 assistants concerned
mainly with checking the biological activity of all new materials
and products that are being considered for commercial use. Although
the main aim would appear to be defensive, there seems little
doubt that Philip Morris are seeking to Identify materials of
the lowest possible biological activity. All smoking and health
work with animals Is put out to contract. Dr Osclone said he
greatly envies GR&DC having the Biological Sciences Laboratory-
toget-her with our ability to work directly with animals.
Ilehavioural Studies
we understand that there has been a substantial Increase in
studies concerning sucker behaviour In recent years - eight
psychologists are now at work. Compensation is clearly one
area of interest. but I suspect like us. they are attempting t@*
got Information of direct conmerciaL relevance.
Flavours
lt@ was clear from a general talk cm flavours that Philip Morris
regard this as one of the major technical challenges today. A
key development would appear to be synthetic polymers with side
change that "pop-off" an modest beat. 'Dr'Osdene said that
they bad concluded that there is no prospect for encapsulated 1=
flavour materials.or for the use of "Idem-type"papers.. N-0
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Carbon monoxide
Philip Morris believe that we cannot just rely on ventilation to
bring carbon monoxide down to acceptable levels. Without saying
so directly, it would seem that they are working strongly on
chemical means.
bbaLBORO gna MERIT
In a general discussion about the difficulty of quantifing the
benefits of research In a basically consumer product industry,
osdene made 2 interesting comments:
1. MERIT was entirely the product of R&D - with a
suggestion that the secret lies In the flavour
system used.
2. Philip Morris are searching for a second MERIT
which, if they find it, "Will pay for all R&D
for the rest of time .
in a general discussion over lunch, Dr Seligman strangely asked
how MARLBORO was doing in England! He then went on to say that
the Philip Morris Board had the toughest discussion ever on
whether tbey, shouia launch the UK MARLBORO as a modified
Virginia blend - I sense because of future problems of maintaining
satisfactory taste when, inevitably. the deliveries have to be
lowered. He intimated that Philip Morris were not happy with
the- low rate of growth.
In an asiac on the commercial success of MARLBORO, Dr Osdene
said that Philip Morris have a "fanatical" concern with ..-
maintaining quality of their products throughout the world.
Publications and Communications
Dr Osclene confirmed what is already well known. namely, that
Philip Morris have an aggresive policy regarding presenting t@o
the outside world an image of high science - by publishing
as much as possible that is not directly linked to commercial
products (after full patenting) , by holding regular international
scientific symposiums to which eminent world scientists are
invited, and by high attendance at appropriate conferences.
Funli no of Research
Dr Osdene said that there bad never been any difficulty In funding
R&D. Overseas companies contribute on a levy basis; they
are In no position to argue an the amount I
C=)
L C F BLACKM"
co
3 November 1980 t---j
CDO
C P Sbeeby Esq
C H Stewart Lockbart Esq/Directors Reading rile
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