Group Research & Development Centre,
British-American Tobacco Co. Ltd.,
SOUT11AJ-1PTON.
DRD/JARE/68
31 st August, 1972.
PRODUCT DEVELOPMENT LABORATORY
AND
FLAVOUR MANUFACTURE
INTRODUCTION
The Product Development Laboratory commenced
operation
on 20th March, 1972, which date saw the end of
Flavour
Manufacture and S.C.L. activities in Liverpool and
the
completion of the transfer of these activities to
Southampton.
Twenty-five percent of personnel transferred from
the
Liverpool laboratories and the period under review
has seen
the build-up of the new units to former
operational strength
necessitating the recruitment and training of some
30 assistants.
The units have been formed, are running well and
approaching
full operational efficiency. The disruption of
services has
been very small indeed. Contributions have already
been made
in the field of Product Development to which the
unit is
dedicated, and ~tr. D.E. Conway has joined the
staff with
responsibility for special projects.
BATCo document for Province of BritiSh Columbia 29
October 1999


PRODUCT DEVELOPMENT LABORATORY
Many projects have been initiated and progress
made. All
of these have commercial potential. The
information given
should therefore be regarded as confidential.
1. STANSTED
This project is aimed at producing an American
blended
type cigarette with a new filter to meet certain
specified
T.P.M.-and nicotine deliveries for launch in
Switzerland.
After several revisions the network analysis has
been
completed and the latest computer printout is
available to
the N.P.C. The blends have been laid down and the
first
samples should be ready for test in P.D.L., 20th -
25th
September.
An extension of STANSTED involving the examination
of
European blended brands to assess smoke
characteristics
and current flavour trends is in hand and the
samples
received.
2. N.C.F. IN PALL MALL AND CAPSTAN
Cigarettes manufactured at various levels of
inclusion
of N.C.F. in PALL MALL blend have not shown the
expected
reductions in T.P.M. levels and further progress
must await
the results of investigations in R. & D.
Samples of CAPSTAN MEDIUM pipe tobacco with and
without
N.C.F. will be ready for assessment early in
September.
C:D
I'D
c0
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October 1999


3. GATWICK
This is a joint project with Imperial Tobacco
Products
Limited, Montreal, towhich we will contribute
mainly in
the area of filtration.
The recent visit of Mr. Conway to Canada has
resulted
in a detailed development programmet agreed with
Imperial
Tobacco Products Limited, and is available to the
N.P.C.
Work has been initiated subject to any revisions
advised
by the N.P.C.
4. J.V. TOBACCO
Cigarette samples have arrived in Southampton from
Jamaica and are being used to establish a
subjective
description of the smoke from J.V. tobacco.
5. SODIUM CARBONATE FILTERS - VE14EZUE-LA
Samples of these filters have been sent to
Venezuela
and filter tipped cigarettes made. Smoking tests
carried
out in P.D.L. show a substantial increase in
extractable
nicotine values which was the aim of the trial.
6. BARONET - MEXICO
A considerable amount of work has been carried out
with the object of attacking BARONET in Mexico.
Report RD.906-R has been issued. Trial blends have
been received from Mexico and work on the
formulation of
suitable flavours is in progress. It should be
possible
to despatch new flavours for trials towards the
end of
September.
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October 1999


4
7. FLAVOURS - VENEZUELA
Proposals were received for the manufacture in
Southampton of three flavours currently used by
Venezuela.
This has involved reformulation to make possible
the
use of some ingredients of U.K. origin and the
replacement
of one or two proprietary flavours. Two
formulations
have been completed and sent to Venezuela for
their
assessment. Work on the third has commenced.
8. RUBIOS - GUA,rENIALA
Some initial suggestions to attack this
competition
have been made. More detailed proposals will bc
considered
following confirmation by the N.P.C. that this
work should
proceed as a major project.
9. NEW FLAVOUR MATERIALS
Some entirely new compounds have been assessed
over
the past few weeks and a report will be issued
shortly.
10. JOHN PLAYER SPECIAL
Work continues in a search for hot melt adhesives
of high melting point to enable original packing
materials
to be used without risk of reactivation of the
adhesive
in hot climates or the rupture of the adhesive
bonds in
cold climates. Attention is also directed towards
alternative packing materials which will run with
conventional adhesives.
CZD
BATCo document for Province of British Columbia 29
October 1999


A further p-roblem with this packing has been the
"pitting" of the polypropylene film. This is
caused by
certain inks used by one converter. An alternative
converter is producing material which initial work
indicates to be free from this phenomenon and
tests are
in progress to confirm this.
TECHNICAL SERVICES
The technical services formerly provided by S.C.L.
have
continued. The total contribution of these
services cannot
be completely assessed until detailed figures
become available
at the end of the current financial year. However,
in some
areas fixed charges are applied and comparisons
can be made.
1. BRAND ANALYSES
The total during the period amounted to 1026,
mainly
for overseas. This represents a contribution of
E25,650
or E61,500 in a full year assuming that the input
to P.D.L.
is maintained at the current level. The highest
contri-
bution under this head in former years was E37,000
for
1970/71. The considerable increase anticipated
results
from the higher charge of E25 per sample now
applied
(E18.50 in previous years), and an increase in
throughput
estimated at 25%. These estimates do not include
similar
work carried out for R. & D. amounting to some 100
samples
in the period.
G~\
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October 1999


- 6 -
While thiS work can be expected to make a
worthwhile
contribution to income, it should be borne in mind
that
P.D.L. does not control the input and demand has
fluctuated
considerably in the past.
2. MISCELLANEOUS SERVICES
Various services are provided to the Group on a
fixed
charge basis, including analyses (e.g. tobacco for
pesticide
residues, nicotine and sugar) and the training of
personnel.
The total recovered in the period under review
amounted to
.E2,570, equivalent to some E6,000 in a full year.
This
compares with the highest annual return of E3,000
for
1970/71.
This estimate does not include the moisture oven
check
test service, formerly provided gratis. A charge
will,
however, be applied for this service from
September and is
expected to contribute E7,OOO/ElO,O00 in a full
year.
These estimates do not include work connected with
R. & D. projects which are charged on actual time
basis.
PRODUCT DEVELOP14ENT CONFERENCE
A Product Development Conference was held from the
15th to
19 th May, and 26 delegates, including 15 from 10
overseas
territories, attended.
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October 1999


FLAVOUR MANUFACTURE
This production unit is running efficiently and
most of
the problems associated with invoicing, despatch
and"shipping
have been resolved. There have been difficulties
in applying
realistic charges for flavours which formerly were
supplied
ex Liverpool at materials and basic labour costs,
with no
realistic contribution in respect of overheads nor
development.
This has been corrected.
It was necessary before moving the operation to
Southampton
to build up some stocks in Liverpool to ensure
continuity of
supply and the Dock strike has held up despatches.
However, during the period under review the value
ex Works
of flavours shipped or which would have been
shipped but for
the strike ex Southampton amounted to E14,000,
equivalent to
some E33,000 in a full year, which compares wi.th
E19,000 for
the year 1970/71, ex Liverpool. In terms of
weight,
approximately 10300 kilos of material were
manufactured in
the period compared with 26200 kilos in Liverpool
for the
whole of the year. The price charged per kilo has
therefore
risen from approximately EO.73/kilo to E1.36.
While this is
encouraging, it is too early to judge the
profitability of
the operation. However, an appraisal will be made
after stocktaking
at the end of the current financial year.
N-)
BATCo document for Province of British Columbia 29
October 1999