GROUP RtD CONFERENCE HELD IN RIO DE JANEIRO
12 - 15 November 1985
Delegates: Messrs.
E.A.A. Bruell (part-time)
A.L. Heard (Chairman)
Australia:
P.M. Denton
R.G. Nicholls
Brazil: C.J.P. de Siqueira
I. Pedro
Canada:
P.J. Dunn
S.R. Massey
Germany:
E. Kausch
E. Rittershaus
U.S.A.:
E.E. Kohnhorst
U.K.:
R. Binns
R.S. Thornton (part-time)
Miss A. Johnson (Millbank)
I.G. Hacking (Millbank-part time)
Aims
1. Agreement on Definition of Group Research Progr
e
2. Agreement on a common set of Research
Objectives
3. To initiate discussion on Priorities and Effort
Allocation
4. Agreement on establishing a shared information
system covering
Projects, Reporting etc.
5. Agreement on future role and organisation of
Conferences/
Technical Meetings
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Research Rationale/ Objectives
ALH presented a Research Rationale which makes a
clear distinction
between Product Research (to be done internally)
and Smoking and
Health Research (to be done externally) in future.
Based on this rationale, a set of Research
Objectives for the Group
in the area of Product Research was proposed. They
recognise the
purpose of our research in relation to the demands
of the consumer
or of Regulatory Authorities.
This rationale was accepted as a working basis by
the Conference
Members. The Research Objectives were also
accepted following
amendments and now read:-
Response to Consumer Demand
M Subjective Smoke Improvement:
"To have the technology to enable Group Companies
to achieve
superiority over leading competitive brands and to
be
able to maintain smoke quality whilst responding
to other
probable restrictions. This will include the need
for
reliable methods of measuring consumer
assessments."
(ii) Subjective Cigarette Physical Parameters:
"To identify consumer standards for performance
and to be able
to achieve these both efficiently and consistently
whilst
responding to other probable restrictions."
(iii) Control of Smoke Levels/Smoke Components in
Both Mainstream
and Sidestream:
"To ensure that the Group is technologically
prepared to
adapt products to respond to consumer requirements
with
respect to smoke levels and constituents without
impairment of consumer acceptance in other
respects."
Uv) Cost Reduction:
"To have the technological capability of being the
lowest
cost producer for corresponding styles of products
in
Group markets whilst maintaining quality
standards."
(v) Social Aspects:
"To develop products which will reduce the social
concern
for smoking through modifications which are aimed
at
alleviation of 'nuisance' aspects."
CX)
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(vi) Novelty/Distinctiveness:
"To develop technology which enables the Group to
introduce
new products appropriate to identified market
segments."
(vii) Alternative Products:
"To position the Group with appropriate technology
in the
event that alternative products to conventional
cigarettes
either become a significant threat to our business
or
constitute an appropriate diversification."
(viii) Tobacco Agrotechnology: **
"To have the technology to allow maintenance
and/or
improvement of both tobacco quality and
productivity
in order to meet the needs of the leaf market and
thereby the ultimate needs of the consumer."
Response to Regulatory Authorities
W Control of Principal Smoke Deliveries in Both
Mainstream and Sidestream:
"To ensure that the Group is technologically
prepared
to adapt products to meet standards imposed on the
industry, without impairment of consumer
acceptance."
(ii) Control of Minor Smoke Components in Both
Mainstream
and Sidestream:
"To ensure that the Group is technologically
prepared
to adapt products to meet standards imposed on the
industry, without impairment of consumer
acceptance."
(iii) Performance Against Biological, Tar Quality
or Composite
Indices:
"For those indices which have a high probability
of being
introduced, to acquire the technology to permit
Group
products to be optimally positioned."
(iv) Legislative/Administrative Standards for New
or Modified
Materials or Processes:
"To be aware of all legislative/administrative
standards
affecting present or proposed future Group
products/
processes and to ensure that technology exists to
enable
these standards to be achieved."
C:D
This is an additional objective raised by Dr.
Siqueira to cover 110
research which is leaf sales/usage oriented and
was developed CO
jointly between us subsequent to the Conference.
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2. Strategy on Smoking and Health Related Research
The key objective is to determine the health
consequences. if any,
of smoking to the smoker.
All relevant external research should be monitored
and, if necessary,
studies should be commissioned to supplement or
clarify this research.
In particular, it is necessary to monitor work in
key scientific areas
(notably in molecular biology) which might
ultimately affect the
tobacco business.
Direct discussions with the Regulatory Authorities
are possible in
some countries and the above activities should
enhance these
discussions.
While there was broad agreement with these
proposals, a view was
expressed that the implementation would be
difficult due to limited
availability of key personnel.
Action
It was agreed that a Scientific Advisory Group
would be set up which
would review work being carried out externally
relevant to the smoking
and health issue. Dr. Thornton will convene this
Group, which would take
advice from consultants.
The function of the reviewing Group would be to
identify and ensure
that it is familiar with all external research
which would be relevant
to the health issue, to evaluate the quality of
that research and
any conclusions based upon it and, when in its
view supplementary or
clarifying work is required, to recommend the
allocation of funds
for that purpose.
The Tobacco Group will be able to call upon the
expertise and
knowledge of the Advisory Group to assist in
evaluating medical and
scientific developments in establishing product
development policy,
and in formulating a position in discussions with
Governments and in
public debate.
Each company must consider means of developing
staff with appropriate
skills to steer external programmes on Smoking and
Health.
3. Tobacco Processing
The Souza Cruz Research Programme has produced
much basic information
and is now focussing on the processing steps which
offer maximum
potential to influence the product.
A specialist group from various CAC countries,
under the leadership
of Iran Pedro, will meet to maximise transfer of
results to Operating
Companies (thus ensuring the application of this
work) and to set
its future direction.
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4. Leaf Projects (Brazil)
Dr. Siqueira reviewed past work and then presented
a suggested work
programme in two main areas:
- Genetic Engineering including possible transfer
of low alkaloid
genes to commercial Burley tobacco and the
transfer of "flavour
genes" to new flue-cured varieties.
- The reduction of nitrosamine levels through the
addition of
reducing agents to growing tobacco or modification
in the air-
curing treatment.
Delegates are asked to submit to Dr. Siqueira, by
early 1986, any
alternative/additional projects which they
consider suitable for
inclusion in a future Leaf Research Programme at
Souza Cruz.
5. Leaf Projects (U.S.A.)
The B&W contract with DNAP to produce high
nicotine varieties is
progressing well and promising subjective smoke
performance has been
noted.
We must now resolve any problems arising through
the current BAT
Industries master agreement with NPI covering
Latin America in order
that this Project may be commercialised in Brazil.
6. Consumer Testing Techniques
It was agreed that there is no requirement for
techniques relating
to market research to be part of the Group
Research Programme.
The Market Research Meeting held in Hamburg in
September addressed
this question; individual countries will depend
upon the existing
close relationship between their Product
Developers and Market
Research to ensure that latest techniques are
being used.
7. Subjective Attributes: Smoke Quality
Improvement
B&W have a comprehensive high priority programme
to explore means of
improving smoking quality and now are
concentrating their efforts on
reconstituted materials, leaf/blend variations and
ammonia treatments.
So far only blend changes and EBR (Extracted
Burley Stem based sheet)
have been implemented in commercial products.
All other developments are being tested in
consumer trials. In the
case of menthol, superior products in relation to
traditional styles
have been implemented in Kool and key competitive
comparisons are
in progress.
BAT-CF have a parallel although smaller programme.
A progress
meeting will be held early in 1986 between B&W and
BAT-CF to pool
available information and to ensure maximum
transfer of results
which can be applied in the short term.
Conclusions will be summarised Oc
and circulated to the other R&D Centres.
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The thrust behind both the U.S.A. and German
programme is to achieve
an advance over dompetitive products, guided
initially by the character-
istics of the existing important competitive
brands.
The Conference acknowledged the considerable B&W
effort in this area.
8. Flavour Research
The Group clearly recognises Germany and Brazil to
be the centres of
expertise in the broad area of flavour research.
The German effort is now seen in the light of
taste modifiers rather
than simply flavour research recognising the
separate contributions
from volatiles, norr-volatiles and polymeric
materials. Cocoa hulls,
pectins and sulphur compounds are all showing
considerable promise
and several of these innovations have found
application in our
existing brands on the German market.
The Brazilian flavour programme, by contrast,
takes advantage of
Souza Cruz expertise in, and access to leaf, and
is substantially
related to natural tobacco flavour e.g.
Amarelinho. Curing experiments
with Comum tobacco are being carried out to
attempt to intensify
natural flavours.
Additionally, Souza Cruz is exploring the
potential of fruit extracts
for improvements to butt aroma, ambient smoke and
smoking qualities
of low grade tobaccos.
All companies have received fruit extracts for
assessment but so far
Souza Cruz have had little response. This is now
urgently needed.
The ultimate rationalisation of subjective smoke
character and
various flavours (treatments) may emerge from
chemo-sensory research
now being expanded within B&W and for which BAT-CF
have already
established two projects. In the meanwhile, the
other R&D Centres
depend heavily on communication of findings. There
is an established
CAC group of flavourists that ensures coordination
of the total
flavour/taste modifier work through the flavourist
workshop held on
a regular basis.
Discussions have already taken place during the
visit of Dr. Galina
(S.Cruz) to Hamburg to ensure that programmes are
complementary and not
duplicating effort.
9. New Product Design
U.S. New Product Development is targetted
short-term:
- to develop improved Barclay products
- to develop a superior quality, female specific,
slim
cigarette (Beta)
- to develop an ultra-slim new product (Visa)
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The Barclay development as ACTRON PLUS delivers
Img with grooves
open and -C 6mg when blocked. The product is
currently in test market.
The Beta development has drawn heavily on the
German experience with
Kim and is achieving parity with Virginia Slim
Lights in consumer
testing.
Visa is demanding a heavy development effort and
is currently at the
stage of Dupont testing against potential
competition.
Longer term B&W product see technology
opportunities in:
- Chemo-sennory Research aimed at a better
understanding of the
physiological/pharmacological action of smoke
- Genetic Engineering Research on Leaf
- Filter Developments
Celanese: amine functionality to modify smoke
chemistry
Eastman: alternative tows/blends
- Reduced sidestream
- Reconstituted cigarette technology
Kimberly-Clarkq aimed at exploring 100%
reconstituted sheet
material
The common objective of these ideas is to improve
smoke subjective
character. However, the joint-venture with
Celanese producing
special tows capable of removing aldehydes may
also offer an
opportunity for Hamburg who wish to remove these
materials in
anticipation of regulatory requirements.
The German initiative on Biotechnology based on
plant cell cultures
may offer opportunity for the introduction of new
techniques for the
product developer.
A large scale fermentation plant at Ahrensburg
will be in operation
at the end of 1986. This will be the only plant of
its kind in
Germany.
The experience gained from small scale systems
will be used when
the plant can be turned over for work on tobacco
products.
Current estimates are that material produced will
have a high cost
relative to tobacco. This will limit usage but
such applications as
the introduction of selected (unstable) flavours,
nicotine, vitamins,
caffeines by "entrapping" these in tobacco cells
may offer new
possibilities. Smokeless products may also offer
an opportunity.
The range of opportunities for using the new
material is potentially
very wide and some prioritisation is needed:
BAT-CF are concentrating
on:
C=)
110
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8 -
1) Vitamins (C & E)
2) Flavours
3) Smokeless products
10. New Product Discussion
In future, product modifications of cigarettes
will follow patterns
established in the past. Changes will be
introduced gradually either
in response to market pressure or the availability
of new techniques
or regulations. Our Product Development must
proceed in anticipation
of such requirements. The new Scientific Advisory
Group will indicate
directions for product modification which will be
implemented
providing commercial support is obtained within
the Group. We must
be aware that external research on S&H issues may
call for radical
alteration to product i.e. a discontinuity in the
general evolution
of products.
1990's Products
There was considerable discussion on the issues of
radically changed
or completely Alternative Products for the longer
term. Although
desirable, indeed essential, that we keep such
possibilities in our
thinking and review the situation regularly, it is
not possible to
set terms of reference for a project at present.
The view was
expressed was that in several of our areas of
current or planned
research (simple aerosol delivery system,
chemo-sensory research,
biotechnology) we have initiatives which at least
offer base technology
for radically changed products should these start
to become more
probable.
11. Human Smoking Behaviour
Canada summarised the past work on Human Smoking
Research and indicated
the future directions being pursued at ITL. The
major application
of existing techniques is in the guidance of
product development:
important linkages between subjective judgements
and smoking pattern
are being pursued. With the exception of BATUKE
R&D which has
retained the techniques previously developed for
the purpose of
product development, no other R&D centre is
pursuing human smoking studies.
12. Biological Research
Canada presented a review of past studies (both
internal and external)
relating biological activity by various tests to
cigarette design
parameters.
The thrust behind the future biological programme
at ITL is in line
with the Group Research Objective of having
knowledge enabling
products to be optimally positioned should
Regulatory Authorities
introduce a biological index. The Conference view
is that the Ames
Test is the most probable of such tests and thus
forms the basis of
CD
c0
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9
the majority of this in-house programme. Opinions
differ on the
merit of including other biological test methods
and it was concluded
that the Scientific & Advisory Group should give
direction on such issues.
BAT-CF have already established a project to be
able to position
commercial projects against a biological index.
13. Product Physical Attributes
Theoretical studies on physical attributes of
tobacco particles have
started in Southampton. There is good support for
this revised
research programme, particularly for Australia and
Canada.
The Australian work related to improved tobacco
usage is recognised
as the centre of B.A.T. expertise in this area.
14. Group Programme
In total there are 606 projects distributed across
the Research
Programmes of individual companies, 153 of which
are agreed to be of
Croup interest, being either fundamental or
applied research. For
clarity the "Group Research Programme" comprises
these latter
projects. The total list will be designated "The
Group Research,
Development and Technical Programme" i.e. Group R.
D and T Programme.
In future, the scope of programme documents may
extend to include
process and engineering developments work which is
not currently
part of the research resource (for example, in B&W
and Australia).
It is now essential that within the Group we use
agreed definitions
of various research categories, not only in
communications between
scientists but in relating R&D to business
activities and functions.
Proposals for such definitions covering
"exploratory", "fundamental",
"applied research" and "technical support" were
accepted with the
provision that the "applied research" category was
redefined as
"applied research/ development". These definitions
now read:-
Exploratory Research:
Scope: Free ranging experimentation.
Timescale: Short.
Output: New ideas/concepts.
Fundamental or Basic Research:
Scope: Knowledge seeking but unlike academic
research is
confined to subjects of business relevance.
Timescale: Long.
cc
Output: Scientific Information.
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Applied Research/Development:
S2 ye: Application of knowledge gained from
fundamental research
to highly-targeted goals.
Timescale: Short-medium.
Output: Products, processes or techniques.
Technical Support:
Scope: Use of available techniques to solve
problems.
Timescale: Short.
output: Data, advice ....
15. Research Planning
It was proposed and accepted by this Conference
that a team formed
from the Research Heads of individual companies
and the Research
Coordinator should constitute the Research Policy
Group. Its function
will be to review research activities and to guide
the development
and implementation of the Group Research
Programme.
It was agreed, however, that the process of
deciding which projects
are run in the individual R&D Centres is a local
matter between the
General Manager and the Research Director/VP who
will convey the
recommendations of the Research Policy Group. (Mr.
Bruell, at the
conclusion of the Conference, fully endorsed the
formation and
constitution of the Research Policy Group).
The proposal to set up a Research Strategy Team
for each major R&D
Objective was not accepted, alternative mechanisms
being preferred
(see later).
16. Communication of Progress
It was agreed that the level of reporting of
progress and of final
results must be raised, particularly from the
larger R&D Centres.
Attempts will be made to standardise format and
style of all
documentation. Six-mouthly Status Review Notes
will be prepared
where possible by business objective rather than
technology. It was
also agreed that a move towards pxoducing the
final project reports
based on the GR&DC style should be initiated in
all the laboratories.
17. Staff Exchange
There may be limited opportunities for exchange of
staff between the
laboratories.
C:D
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18. Development of Group R, D & T Programme
information System
The Conference agreed that the development of a
computer-based
information system, the initial usage of which was
demonstrated in
the meeting, was a high priority in view of the
scope and complexity
of the Group R. D and T programme, Delegates from
each country were
nominated to form an Information System Group and
a meeting will be
convened with minimum delay (Dee 85/Jan 86).
Particular care will be needed to standardise
format, language,
classification of projects and allocation of
effort. The Group must
consider data security as a priority topic.
The availability of such a data-base to provide
management information
e.g. on effort allocation across the Group by
various project
classifications was agreed to be an essential tool
for the Research
Policy Group.
The Information System Group should also be
responsible for bringing
any written reports to a standardised format where
possible.
19. Technical Specialist Meetings
The Conference agreed that as we decentralise R&D
it is increasingly
essential that technical specialists from
individual companies meet
to exchange results and plan the detail of the
research projects.
In 1986, meetings were proposed as follows:
Subject Host Country Suggested Timing
1) Flavourist Workshop Germany September/October
2) Tobacco Processing Brazil October 1st week +
(chemistry, engineering,
impact on product
development)
3) Chemo-sensory attributes U.K. September
nicotine in smoke
4) Product development U.S.A. March
5) Competitor Intelligence* Germany May/June
Dr. Kausch will consider whether it is feasible to
hold such a
meeting and if so, will circulate its terms of
reference.
+ Change of proposed date.
20. Future R&D Conferences
C~o
__4
This Group decided that the annual R&D Conference
in future should be
in two parts: A Technical Review lasting three
days which will be
attended by the RPG together with possibly two
Senior Technical rQ
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Managers from each R&D Centre and a RPG Meeting to
follow, lasting
two days. At the Research Conference, Smoking and
Health research
will be a regular feature and Dr. Thornton will be
alloted probably
half a day. It was agreed that his attendance
throughout the whole
of the Technical Meeting would be mutually
beneficial.
It is proposed to hold the next Research
Conference in the first
week of September '86, in Australia.
An RPG Meeting may be held early in 1986, if the
Scientific Advisory
Group on Smoking Issues produces any comment or
recommendation which
needs early consideration or if the Information
Systems Group has
made sufficient progress for resource
allocation/priorities to be
considered.
21. Marketing
As an innovation, a Marketing presentation was
made to this Conference
by I.G. Hacking. He outlined statistics for annual
growth rates in
world cigarette markets and indicated the areas of
opportunity for
BAT. The principal consumer needs identified at
the 1984 Marlow
Conf--erence were reviewed; they are basically
unchanged and are
covered in the new Research Objectives of the
Group but it was noted
that the Marlow decision to pursue a feminine
style product looks
far less certain for most countries, with the
possible exception of
U.S.A.
In conclusion, the Conference believed that
considerable progress
was made towards meeting its initial aims, a view
endorsed by
Mr. E.A.A. Bruell in his closing remarks. He also
supported the various
initiatives recommended including the formation of
a Scientific
Advisory Group on smoking and health matters, but
stressed that it
should be small (6 or 7 people), its members
carefully chosen and,
above all, its terms of reference clearly defined
from the beginning.
(These will be circulated for clearance with
individual C.E.O.s before the
proposal is adopted). Mr. Bruell encouraged
delegates to surface
any problems immediately to the Co-ordinator, who
should visit each
Centre twice each year. He endorsed the need for
more formal reporting
of research and, recognising that there may be
certain commercially
confidential information, asked that the
Co-ordinator should have
total access and could advise on distribution.
AL HEARD
3 RD DECLIGER 1985
Distribution: Mr.
Mr.
Mr.
Dr.
Dr.
Dr.
Dr.
Dr.
E.A.A.Bruell
P.M.Denton
R.G.Nicholls
C.J.P.de Siqueira
I.Pedro
P.J.Dunn
S.R.Massey
E.Kausch
Mr. E.Rittershaus
Mr. E.E.Kohnhorst
Dr. R.Binns
Dr. R.E.Thornton
Miss A.Johnson
Mr. I.G.Hacking
Mr. A.L.Heard
(ZD
1 ~
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