RESEARCH & DEVELOPMENT MEETING OF THE HEADS OF THE CAC TOBACCO COMPANIES LONDON : 7/8 MARCH 1985 PRESENT: MR. E. A. A. BRUELL MR. MR. MR. HERRN. MR. MR. MR. MR. Plans for GR&DC R. M. J. T. P. D. A. J. E. L. D. E. B. K. L. PRITCHARD CRAWSHAW MERCIER VON SPECHT SANDEFUR SMITH THORPE HEARD It is proposed that GR&DC ceases to be a central research establishment and becomes the laboratory for BATUXE and BATCo in an arrangement paralleling..~hat which exists for the laboratories in the CAC companies. it wili cease to be an extension of Read Office. It is recognised that, since the establishment of GRSDC as the BAT tobacco research laboratory 30.years ago, the various CAC laboratories have developed expertise In certain research areas and it is now natural to build on these skills. In future fundamental research will be done across the Group by the laboratory showing the greatest interest/expertise for any particular subject. Mr. R. J. Pritchard will be the Director responsible for the Group R&D activity, and Mr. A. L. Heard will co-ordinate the total Group programme. The benefit of decentralising the fundamental R&D is that its direction and management will become integrated with the current applied/development activities of the CAC laboratories, and thus take on a greater market-driven aspect. (This does not imply that it has only short-term goals.) The existing Group Research Programme assembled by GR&DC has been reviewed in the light of (1) the new BATCo/BATUKE likely needs, and (2) the areas of research that we now believe are most sensibly retained in the Southampton laboratory. The meeting agreed the following changes in broad principle, subject to ratification by the Research Directors meeting on the 21/22 March: 00 co BATCo document for Province of BritiSh Columbia 9 November 1999 2. 1. Biolotical Research To be terminated at GR&DC except for a two man team for Ames testing. Project RIO to be completed, based on Ames tests, and each territory to then decide what action to take on brands. Under ALE a small senior team of scientists will determine the future use of external agencies for research in the biological/S&H area. Germany and Canada will retain their Ames test facilities. Dr. Thornton, reporting to ALE, will be responsible for central co-ordination of technical information on Smoking & Health issues. 2. Smoke Research This is an important area of fundamental research and, in view of the high calibre of the team, is beat left in Southampton. Within the combustion/mechanisms projects, particular interest was shown in work aimed at reducing/eliminatiug the formation of known undesirable smoke components. USA expressed considerable interest in expanding their activity in various aspects of smoke formation, including aerosol formation. This will be co-ordinated with the Southampton work. 3. Smoker Behaviour In future Southampton will use the techniques previously developed for monitoring human smoking only as a test method for product developmeutt not for studying individual smoking styles. No development of new techniques will be carried out, thus effort will be considerably reduced. If further development of techniques is needed Canada, which currently has a small enthusiastic team, may form the best base for this work. Nicotine studies were considered important and should be discussed at the Research Directors' Meeting in order to clarify future projects/location. it was agre ad that work on Smoke Retention should be terminated within the Group. Work on "Dry Mouth /Af tertas te" should not continue at Southampton. C:> 110 CX:) co r%J _rZ.- 00 BATCo document for Province of BritiSh Columbia 9 November 1999 4. Tobacco Treatment In future Southampton will concentrate only on chemical changes/treatments for flue-cured tobacco. Project SHIP will continue for Virginia blends, including Australia, if support continues. Development of mapping techniques, an important recent innovation, will continue. -5. Flavour and Biotechnology It is proposed that the GR&DC search for new flavour chemicals or for means of increasing precursor levels in tobacco should terminate, in view of its low success rate. Maximum use of Flavour House facilities should be made in future, but it is also recommended that Germany should become the research centre for flavour ebemistry. Brazil will also consider how it might strengthen its work in the area of flavours, both research and production. All centres will retain Flavourist technology as a key aspect of product development. 6 A. Process TechuoloRy Southampton will retain Process technology on Virginia blends only - work on Burley will be progressed by the "blended" companies. It is anticipated that BATUKE/BATCo will identify its specific needs in Processing. The work on novel expansion processes which is showing promise will continue, although this may be offered to one of the other companies to scale-up in due course. 6 B. Physics of Tobacco Although the objectives of this work viz. the removal of barriers to density reduction (ends quality, firmness, hot collapse) and product variability studies are deemed of high priority, it is not felt that the current team/programme will be successful. it will be drastically curtailed. Consideration will be given to where best to get such work done, either in other CAC laboratories or in universities/iustitutes. CZ) %-0 GO 00 NO BATCo document for Province of BritiSh Columbia 9 November 1999 C=) CO CO r\-) _z:n. NJ CZ3 BATCo, document for Province of British Columbia 9 November 1999 4. The search for Processing Improvements will be encouraged at Soutl:smptont but based on "exploratory" rather than"fumdamental" studies, and very much led by Operating Company requirements. 6 C. Novel Cigarette Technology This work area represents the "blue skies" or exploratory side of cigarette innovation, but has suffered in Southam->ton from a lack of the type of marketing guidance availabie in Operating Companies. It is belie-wed territorial should have and Germany work. that even "blue skies" work has a orientation and that all CAC companies some projects of this type in future. USA are seen as probable lead companies for such The Southampton effort will be reduced in line with BATUXE/3ATCo needs. Opportunity to create long-term innovative "building blocks" in th* paper and filter areas was suggested. The important role of the Chairman of the CAC tobacco companies, not only in taking a close interest in their R&D function, but particularly in agreeing long - as well as short - term market oriented goal's was agreed. 7. Measurement Technology This area should be responsive to needs identified by BATUKE/3ATCo Operating Companies in future. A small group will be retained, but the opportunity to contract out instrument design/ fabrication will be encouraged. The co-ordinator will aLt as a "clearing house" in this area for enquiries from laboratories. 8. Analytical Southaupton must retain the capability of developing chemical or physical test methods for BATUKE/BATCo specific needs. Method development for research projects will be reduced in line with the overall scale of the research effort. 9. Psychology/Charter Research Whilst there is an agreed need to strengthen our techniques for understanding the consumer, it was not felt that 110 cc c0 r\-) BATCo document for Province of British Columbia 9 November 1999 5. Charter Research was of value. In general, countries had their own arrangements (e.&. du Pont in B&W) and ME have no need of the CRA facility. It was concluded that the psychology function at Southampton be terminated, although opportunities to re- deploy the leader, R. P. Ferris, who has considerable creative skills will be explored with the CAC companies. .10. Additives Guidance Panel, etc. Southampton will retain T. G. Mitchell as Chairman of the Additives and Materials Guidance Panels for the Group. 11. External Bodies Concern was expressed that BAT is under-represented in, for instances Corresta. Mr, Pritchard indicated that a world survey was being conducted on the relevant bodies Corresta, ISO, DIN, Tobacco Workers, etc. - who are the current rapresentativ~es? when are elections due? and so on. A strategy paper suggesting bow we should progress will then be issued. 12. Cost Implications BAT Industries have charged BATCo to ensure that, as a result of this restructuring of R&D, the outcome is greater achievement rather than necessarily lower cost. It is envisaged, however, that costs for all companies will be no greater and probably lower, but we should expect to increase the amount of work contracted to universities and institutes in the future. Mr. Bruell. does not want to establish inter-compauy accounting arrangements; trading should be in services rather than money. However, it is anticipated that neither USA nor Germany will contribute funds externally once the re-organisation has been completed. Canada, Brazil and Australia were asked to confirm the extent to which they wish to continue to use Group research facilities, and whether they agree to funds being "routed" via the BATCo corporate function (RJP/ALH). 13. Confidentiality of Information The number of UK staff aware of the intended changes in GR&DC Southampton are very few. Mr. Bruell agreed that each co cc BATCo document for Province of British Columbia 9 November 1999 6. Chairmam could inform those of his staff he wishes, accepting a tight "need to know" basis. General announcements were expected in the latter half of April. 14. Research Directors' Meeting This has been arranged for the 21/22 March 1985. The prime tasks are: 1. To agree those items to be retained/rejected from the current Group Research Programme at GUDC . 2. To identify CAC laboratories with particular expertise, where items removed from the GR&DC ?rogramme should be transferred. 3. To agree the principle of an integrated Group Research Programme across the various laboratories, each approved by its local Chairman and senior management and co-ordinated for Mr. R. J. Pritchard by Mr. A. L. Heard. For this meeting each CAC laboratory will be asked to bring its R&D programme, together with a list of external R&D contracts. 15. Future Co-ordination Considerable stress was placed on the importance of the co-ordination. role and the need for a totally "open door" policy between laboratories. Specialist research -meetings will be encouraged. In future, the annual research directors' meetings should be a Group policy setting and technical exchange forum. It was proposed that the co-ordinator should visit each company twice each year, the aims being:- 1. to monitor R&D projects and to ensure information flow between scientific groups 2. to discuss R&D needs of the company with Chairman and senior management. The first round of discussions should be scheduled such that each laboratory can construct its programme (in the light of the reorganisation of GR&DC) and a Composite C:> Group Programme can be constructed by ALH by the and of I'D September 1985. CX:) CO N.) BATCo document for Province of British Columbia 9 November 1999 7. 16. Next Meeting It was agreed that this group should meet in 12 15 months to review progress. A L Heard 11 th March 1985 C) CO 00 NJ BATCO document for Province of BritiSh Columbia 9 November 1999