T Xx - - .7 r 9.- A I INA . . . . . . An T- LK -I rh A'. .77. U-C! f-T jig ~47 1'~irv'Ai TTlk"" BATCo document for Province of British Columbia 11 November 1999 RESTRICTED GR&DC RESEARCH PROGRAMME Progress Review: Work Area 516.00 Period ending March 1985 This document reviews all work at GR&DC, Southampton, not covered by the Central Group Research Programme and is predominantly concerned with the technical support to non-CAC Operating Companies and Millbank Departments. Distribution: No.1's of Operating Companies. For Information Mr. A.L. Heard Dr. R. Binne Mr. R.G. Nicholls Dr. C.J.P. de Siquaira Dr. P.J. Dunn Harr. E. Rittershaus C=) UP14 1983 BrW&b AAwdcan Tob6m Co. LAL TN. mm no be P a pdo- 2. -dwdd pwm ~0- BATCO document for Province of BritiSh COlUmbia 11 November 1999 RESTRICTED CR&DC RESEARCH PROGRAMME Progress Review: Work Area 516.00 Period endinx March 1985 PRODUCT DEVELOPMENT AND TECHNICAL SERVICES Work Area Key Task 516.01 Technical Support to Operating Companies, except BAT (UK&E) 516.02 Brand Analysis 516.03 Specific Investigations 516.04 Technical Audit 516.11 Product Innovation 516.13 Technical Support by Psychology 516.14 Flavour Development 516.21 Flavour Manufacture 516.31 Product Development for BAT (UK&E) 516.32 Brand Analysis for BAT (UK&E) 516.33 Materials Testing for BAT (UK&E) 516.35 Blend Analysis - Corby 516.45 Equipment and Process Evaluation 516.61 Materials Testing for Purchasing Department Page No. 3 6 7 8 9 16 22 23 24 25 26 27 28 34 1985 British American Tobacco Co. Ltd. This must not be copied or sho-n to w4uthorised persons. BATCo document for Province of BritiSh Columbia 11 November 1999 Work Area 516.01 Key Task Technical support to Operating Companies, except BAT (UK&E). Strategic Objective To provide Operating Companies with product technology xpertise as necessary to meet existing and projected : ompany and consumer needs. Status In the case of companies with well-established 1:1 liaison linksv Product Development and Technical Support provided to the Cigar Group, Finland and Switzerland has remained at a very high level and the last period bas seen a ignificant increase in the support provided to our :ompanies in the Far East, Kenya, Nigeria and South Africa. The level of support provided to other companies e.g. New Zealand, India, Cyprus, Mauritius, Mexico, Chile etc. has also increased over the last period and this trend is expected to continue In the future. In addition, significant product development support has also been provided to Millbank Departments for exploiting Opportunity Markets - most notable example in this cage being the development work for Turkey and Canary Islands (for Spain). The following examples illustrate the range of product related activities of the Operating Companies in which contributions have been made: a) A procedure for the development of DIET core blend suitable for high level of inclusion in a product has been recommended to a number of companies. Application of this procedure in one company has resulted in the Identification of a core blend which is acceptable in C:) %1 C %-C 1985 British AmeA= Tobacco Co. Lt& This mot not be copW at shown to unauthadsed p- cc BATCo document for Province of BritiSh Columbia 11 November 1999 - 4 - terms of smoking quality and cost. 25% inclusion of this blend in an existing product is scheduled for trials this year with a view to implementation early next year. b) Development of reduced sidestream, products is being pursued with several companies. c) Design and manufacture of low weight cigars suitable for markets with weight related duty structure. These are currently being tested. d) Design of project aimed at improving smoking quality of domestic tobaccos via appropriate casings and flavourings formulation and heat treatment. a) Critical examination of both the subjective and objective characteristics of market specific own and competition products with a view to developing more effective product portfolio. f) Technical support in relation to different styles of league tables published in various countries e.g. tables based on partially blocked ventilation holes (Hong Kong). tables based on 10 smoke constituents in Switzerland and more recently tables based on deliveries estimated by 'sampling from the mouth'. This support is in addition to the contribution made in the more conventional aspects of product development g. product improvement in existing brands based on r*oject BROLAM which has now been implemented, development ; 0 1995 British American Tobacco Co. Lid This man act be copied or shown to unauthorized pe BATCo document for Province of British Columbia 11 November 1999 of a line extension to be launched in Finland this Autumn, advice on designing blended product with and without heat treatment (India)* substitution of raw materials mostly for cost saving purposes (e.g. tow for Kenya, adhesive for Nigeria etc.) and delivery assurances through appropriate design and analysis of products destined for the Middle East narkets (for Kenya). In terms of technology transfer, the following highly successful courses have been run: a) Two Product Technology Seminars involving delegates from Hong Kong, Malaysia, Singapore, Indonesia and one from Bangladesh were run in Jakarta in November 1984. b) Two day introductory seminars were run for RAT (UK&E) in July and October 1984, and for W.D. & H.O. Wills (New Zealand) in November 1984 and Finland in March 1985. c) Contributions were made in various courses at Chelwood (MTC and MDP) and in courses run by Marketing Department, Millbank (Marketing Managers Course, Brand Managers Course etc.). d) OMEGA T&F Workshops were run in Sierra Leone, Malaysia, Panama and in the U.K. involving delegates from 36 Operating Companies and now OMEGA has been established as the Group standard sensory evaluation method. In the next period, two Product Technology Seminars are currently being planned to be run in the Indian Sub- Continent and nominations of 30 delegates from the five companies have already been received. Continued contributions at Chelwood and in Marketing Courses are also expected. C=) 1995 British American Tobacco Co. LUL This must not be copied or shown to unauthorised peno.L BATCo document for Province of BritiSh Columbia 11 November 1999 6 - Work Area 516.02 Key Task Brand Analysis for Operating Companies. Strategic ObJective To provide an effective brand monitoring service, as required by Operating Companies. Status Inter-Laboratory Cross Check Test No.14 has been completed. This test included expanded tobacco, density and firmness measurements and was the first of a series of improved cross-check tests designed to meet the changing requirements for cigarette monitoring procedures. In conjunction with Production, Planning and Development Department, Millbank, a density/firmness review of the Operating Companies was conducted and reported. A specific cross-check with an Operating Company laboratory Is in progress following the Technical Audit carried out in February 1985. CZ> 1995 British American Tobsoco Co. LAd. This must no be copied or shown to ~thoriud pasons. BATCo document for Province of BritiSh Columbia 11 November 1999 Work Area 516.03 Key Task Specific investigations and service to operating Companies provided by GR&DC Croups other than the Product Applications Group. Strategic objective To apply GR&DC resources to specific non-routine investigations as required by Operating Companies. Status Sidestream yields of 21 brands of cigarettes from the U.S. market have been determined. A wide range of values for PMWNF, nicotine and carbon monoxide were found. However, whet corrected for the weight of tobacco burned during smoking, the sidestream yields for each parameter were consistent across the range of samples. A visit, of five weeks duration, was made to B.A.T. Mauritius to advise in the installation of equipment and commissioning of the new laboratory. 1985 British American Tobacco Co. Ltd. This must am be copied or sh-n to unmaborized persons. 13 ATCO document for Province of BritiSh Columbia 11 November 1999 8 - Work Area 516.04 Key Task Technical Audit Service. Strategic Objective To ensure that laboratory services within Operating Companies are to the standards required to support effectively relevant company operations. Status The regular Technical Audit service will begin later this year. However, a return visit to central American laboratories audited in December 1983, together with an audit of another laboratory within the same area was made in February/Xarch 1985. We have been requested by Millbank to consider the installation of a laboratory in Tanzania, as part of the co-operation that exists between us. This will be covered during the planned audit of our laboratory in Kenya in May. C:> 110 1985 British American Tobacco Co. L%& This m= am be copied or shmm to Lwaudmxised persom N.) BATCo document for Province of BritiSh Columbia 11 November 1999 Work Area 516.11 Key Task Product Innovation. Strategic Objective To develop new products to meet existing and projected consumer needs. Status The projects are described under the four broad consumer needs which were identified during the Joint Marketing/R&D Conference in 1984: 1. SmokinR Pleasure and Satisfaction The three main projects in this area (KILT, SMITH and FELT) have the common objective of designing low and/or ultra low tar products with high taste to tar ratio. The differences lie in the approaches adopted to meet this objective. Project KILT is aimed at achieving enhanced subjective characteristics of the products by changing the pattern of smoke emanating from the filter. The work to-date has, therefore, concentrated on the design and manufacture of novel prototype filters. As a result. three basic designs have been patented and are being evaluated. a) Filters having air passageways provided by small tubes extending from the periphery of the filter to the centre of the mouth end. b) Filters having a single air passageway provided by a deep slot in the filter. LN 1985 Bdtith Amaican Tobacw Co. U& This mun ow be copW or shod to -Owdud pefsom BATCo document for Province of British Columbia 11 November 1999 - 10 - c) Filters having a single central air passageway. Encouraging results having been obtained in small- scale subjective test using hand-made filters. Recent work has concentrated on securing large enough supplies of these filters of consistent quality for large scale tests. Various avenues are being explored viz using the GR&DC spin-moulding technique in conjunction with the technique developed for inserting tubes along the length of the filter. In-house development is in progress for filters a) and c), Filtrona (Germany) have already supplied 20,000 filter rods of design b) but these require further modifications. Filtrona (Germany) have again been approached on this and parallel development is being conducted in-house. The possibility of using Injection moulded mouthpieces to achieve the design of filters b) and c) in also being actively pursued with two separate companies within the U.K. Project SMITH attempts to further enhance the subjective characteristics of the products by modifying the KILT filters and introducing cigarette design features which optimize the performance of the cigarette according to our current understanding of human smoking behaviour. Thus, the development of filters within this project will follow closely the development for Project KILT. More specifically, based on lab-scale objective tests, a number of potentially useful filter/cigarette design combinations have already been Identified and are currently awaiting supply of filters for larger scale subjective tests. In addition, within this project, a set of three products have been designed such that the effect of changing smoke pattern on the subjective characteristics may be separated from the affect due to human smoking behaviour. The objective tests on these products have been completed and are awaiting subjective testing. 1985 9MM Amwi=. Tab. Co. L&& TUs mod not be copW or dwwa to nawtbiud pe. BATCo document for Province of BritiSh Columbia 11 November 1999 - 11 - In contrast, the initial approach in Project FELT in to work within conventional cigarette design technology and to maximise the satisfaction from the first third of the cigarette by optimising the contribution from the principal design elements. Exploration of different types, levels and location of additives in the cigarette (including the filter), as the first stage, in in progress. 2. Value for Money Again, three current projects fall within this area: Projects ETNA, RUGBY and FLISHET. The objective for Project ITNA was to re-design an existing full-flavour Virginia product with 25% DIET. Working in collaboration with Leaf Department, Millbank and Wokiug, a new core blend was designed by smoking single grades pre and post expansion. 25% inclusion of this expanded core blend in a suitably modified product design, including a modification in the unexpanded portion of the blend. resulted in a product match as judged by the In-house T&P panel. Consumer test, with the potential of evaluating product performance on a range of attributes not Included in the in-house test, is in progress. The objective for the final stages of Project RUGBY was to re-design an existing European product with maximum level of DIET Inclusion. At 80% inclusion levelv acceptable Taste and Flavour characteristics were obtained, however the ash stability and ash appearance were inferior to the existing product. Better ash stability was obtained by reducing the level of DIET to 602 but still the ash appearance was unacceptable though ash stability may be acceptable. As a final effort in matching the ash characteristics of the target product, It is planned to test four unconventional variants of cigarette papers. L985 Bridsh Ame&w Tab== Co. LA This aria so be oo*d w shown to unaudwrisW puzons. C, BATCo document for Province of BritiSh Columbia 11 November 1999 - 12 - These papers are expected to be available by the end of April and the evaluation should be completed by the end of June. No further trials are planned vithin this project. In the meantime, Karketing/R&D Liaison Group felt that in markets with veight related duty structure and for companies who manufacture cheap and/or generic products, the product requirements say not be as stringent as those for the identified European product. Since individual companies are In the beat position to evaluate the marketing opportunities and the financial implication of such products, it has been decided to vriteup Projects EM and RUGBY an a single Product Development Reviev. This is expected to be issued in the second half of this year. The final project - Project FLISMET - relates to the design and manufacture of stem filters. Filter rods have been manufactured using a number of variants In the preparation of the flue-cured stems and their physical properties have been determined. Cigarettes have been assembled vith these stem filters and filtration efficiencies and physical properties are currently being determined. Control cigarettes have been included vitb CA filters at comparable pressure drops and filtration efficiencies. In addition, cigarettes have been assembled using the Xanuella vith 8mm and 5mm CA filters under 24mm tipping. These lengths were chosen since Souza Cruz are currently producing 8mm CA filter tipped commercial products and have made extensive machine trials vith 5mm CA filters. These products vill be assessed subjectively and the vork will be reported in a Product Development Reviev. Work on bleaching stem is continuing. Problems vere encountered with drying the very vet bleached stem to an acceptable moisture content and retaining the stem in a suitable form to allov filter rod manufacture. 1985 Bdtisb A-erkan Tobsom Co, LaL This ==I am be wpW at Amm to wwwhwbw pasm& BATCo document for Province of BritiSh Columbia 11 November 1999 - 13 - In collaboration with RAT (UK&E), a new project aimed at developing a blend philosophy for the optimination of DIET core blends has been initiated. Individual grades of tobaccos selected on the basis of country of origin, plant position and degree of ripeness will be examined pre and post expansion In terms of smoking quality, process yield and FPI. A selection of grades, including some that would not normally be purchased by RAT, have been ordered and a cross-check to ensure that the performance of the GR&DC DIET plant in comparable to CORBY has been carried out. The expansion work will commence as soon as all the required grades have been received. 3. Personal Re-assurance Project LOCO - aimed at producing guidelines for designing products with low 00 to tar ratio but with acceptable smoking characteristics - is now complete and has been reported in Product Development Review No.15. 4. Social Re-assurance - Project TROUT Reduction In visible sidestream to the level achieved by Ecusta magnesium oxide papers (about 50%) continued as the main eldestream product objective, in conjunction with De Maudult. Cigarette paper formulations which achieve the objective have now been developed. Cigarette making trials at 4000cps for up to 10 minutes gave satisfactory results and superior to that achieved with Ecusta paper. Die printing was satisfactory with no dust problems. Ash characteristics were satisfactory. Internal smoking trials indicated that taste properties were satisfactory, supporting results from a Charter Research consumer test %%C 11 C N~ 1995 Britith Ametican Tobacco Co. L&L Thh mug am be copied at zbown I* mautborised pasom cc BATCo document for Province of BritiSh Columbia 11 November 1999 - 14 - an an earlier version of the paper, recorded in the previous report. A very recent consumer test in Finland confirms earlier findings that the use of this paper results in higher mainstream Impact and Irritation when compared with an equivalent delivery conventional product. This suggests that a better approach In product design term would be to match the impact and irritation of the target product by reducing deliveries and blend nicotine and perhaps reducing the burley content of the blend. Product development based on this approach is already in band. Burn rate was faster than from conventional cigarette papers and this property was also criticised in the Finnish consumer test. This can be partially corrected by modifications to cigarette and blend design. In parallel with this, a series of papers sized at correcting this have been investigated without success and further paper formulation changes are being pursued with De Mauduit. Ecusta and De Maudult papers give no significant difference on sidestreas irritation and odour relative to conventional papers. They do not reduce sidestreas vapour phase components such as carbon monoxide. The research programme indicates that nicotine may be a significant contributor to sidestream irritation and Is investigating methods of reducing sidestream nicotine. ' This will require further joint developments with De Mauduit, but the terms of a further agreement with then have not been finalised. Meanwhile, the only route to reduction of all sidestresa components. and hence irritation and odour, is to reduce the amount of tobacco burned to sidestreau. Thus the low weight cigarette design approach In combination with Ecusta and De Mauduit papers is being reconsidered. U- 1915 DrkM Annim Tbacw C. LA& Tbis mm &a be w Awn w mautbadsW pavom BATCo document for Province of BritiSh Columbia 11 November 1999 - 15 - In addition, working with the Flavourist, two projects based an empirical product development approaches to reducing irritation and modifying/masking odour are being planned and are expected to start In May. Further developments by Ecusts. have been limited to production of a higher permeability magnesium oxide paper which is claimed to improve the taste and mainstream Irritation properties which have been a problem with their commercial formulation. This claim is the subject of a current Internal panel test. However, Ecusta have stressed that this formulation is not commercial because of supply problems on the Kenaf fibre used to achieve the higher permeability objective. An alternative, potentially commercial, approach Is being investigated, but Ecusta cannot predict a date for a successful outcome. 1995 Britbb Amun=n Tobacm Co. LA& Tkk oran am be copW at abom to unwdwdzw BATCO document for Province of BritiSh Columbia 11 November 1999 16 - Work Ara& 516.13 Key Task Technical Support by Psychology. Strategic Objectives To provide technical support by Psychology, which together with Marketing activities, strengthens the Interface between BAT and the consumer. Status Work In this area splits evenly into two complementary activities: 1. Activities concerned with relating consumer attitudes, motivations and preferences to the product (e.g. product testing, subjective evaluation, concept testing and segmentation methodologies). 2. Activities concerned with communicating product attributes. qualities and concepts to the consumer (e.g. brand image measurement, optimising visual stand out of packs at the point of sale, optimising communication of concepts). 1. RelatinR the Consumer to the Product a) Innovative product testing Methodology for small scale consumer evaluation of prototype innovative products designed to produce modified smoke flow patterns has now been reported as a technical memorandum. The reference project for this technical support was KILT. 1985 British Anwncaa Tobacco Co. U& This must am be copied or shma to onssabmised BATCo document for Province of BritiSh Columbia 11 November 1999 - 17 - Methodology has also been developed for observing and analysing the physical smoking and handling characteristics of cigarettes, with particular reference to ash stability. The method is based on video recording of consumer Interviews with subsequent analysis. This methodology 'has also been reported as a technical memorandum which details two validation exercises. The reference project for this technical support was RUGBY. A research plan is currently being formulated to provide consumer validation of the level profile/front end lift concept. Pending suitable products from the reference project (FELT) level profile design effects will be simulated by the use of serial presentation of part-smoked cigarettes and/or progressively manipulated ventilation levels on cigarettes presented to consumers. b) Product testir- A test method designed to measure the effect of levels of concept awareness on consumer perception of products to currently in draft as a technical memorandum. The method has been used twice In support of the sidestream research programme to evaluate reduced sidestreas cigarettes and to determine the affect of level of consumer awareness of the sidestream concept on their evaluation of the sensory characteristics of such products. It was shown that weight of and type of concept has a significant effect an sensory perceptions in the short term. Growing interest from Operating Companies in a consumer product test method allowing relative 1985 Bridsh Amrican Tobacco Co. LuL This sma oft be copied or sbown to unaudwrind persoaL BATCO document for Province of BritiSh Columbia 11 November 1999 - is - product sapping now Indicates a requirement to formally report the NILE methodology (a test approach based on a large sample variant of the DELTA technique). A GR&DC report will be prepared In the next quarter. Pilot work has commenced on a -new product testing model for predicting consumer preference (BETA). The basic model is derived from project BROMLEY, one of the precursor studies Involved in the development of the OMEGA group standard panel technique. Development of the method Is anticipated to require six months. Pending a successful outcome, the technique will be promoted throughout the OMEGA T&F Network as the natural consumer product test parallel to OMEGA In7-house sensory testing activities. c) Sezzentation Project MARINERS. a three year cohort study relating consumer attitudes (i.e. smoking and health, social pressure, price sensitivity) to their smoking 'behaviour (i.e. quitting and switching patterns) was completed with a final data collection from the sample of 800 consumers in November 1984. Effort is now diverted to constructing the historical data bases and subsequent analysis (largely discriminant analysis). Reporting will commence within the next quarter. A companion project, SONAR, was designed and completed to data collection stage In December 1984/January 1985. The objective of the project is to consider the relationship between consumers' attitudes and quitting/switching career*, and C-- `10 1985 British American Tobacco Co. Ud. Tbis invat not be copied or ab-a to usaudwised pefsona. UN BATCo document for Province of BritiSh Columbia 11 November 1999 - 19 - behavioural measures of smoking 'style' I.e. the way these consumers actually smoke cigarettes to achieve deliveries of tar/nicotine. The research, undertaken in collaboration with Smoking Rehaviour group, used a sub sample of MARINERS consumers segmented by tar brand and stability/instability of quitting/svitching propensity. Smoking behaviour monitoring was conducted In the field. Data analysis is currently underway to allow reporting within the next half year. A successor project to MARINERS, which aims to develop a method for consumer segmentation based on lifestyle and desired product benefltss received preliminary attention within the last data collection phase of MARINERS. A battery of lifestyle items were exposed to the consumers and results will be factor analysed prior to further questionnaire development. 2. Communicating the Product to the Consumer A GR&DC report Is In final draft, producing a comprehenalve methodology for measuring prominence of design elements within pack layouts. The approach uses the 'tachistoscope', a device for presenting pack stimuli at very short durations. This has the effect of highlighting the most efficient parts of the pack in terms of visual prominence. The report presents general action standards for pack prominence studies and Illustrates appropriate methods while at the same time considering cross-cultural stability of such measurement through two studies conducted In the U.K. and Finland respectively. C=) 1985 British Axm-i~ Tobseco Co. U& Thb mun am be capiod or sb~ to mumbodsed persaw. BATCo document for Province of BritiSh Columbia 11 November 1999 - 20 - A key question relating to prominence measures is whether they really relate in any way to subsequent consumer recall of pack material. An additional study was incorporated Into this report comparing visual prominence with consumer recall functions and results show a strong positive relationship between these factors. As previously stated, technical developments using high resolution computer graphics now mean that consumers can be tested on novel pack designs generated as scale realistic images by computer software onto a monitor screen. This approach has now been developed to allow hard copy of graphics generated designs which can be mounted on actual packs for use In point of sale studies. Detailed analysis of eye gaze and brand information recall studies of outdoor advertising (project POSTEX) is now completed and a CR&DC report in In first draft. Point of sale research (in-store shelving for the display of packs) receives current priority. The aim of the research remain: (a) to measure visual scanning behaviour of consumers looking for packs at the point of sale, in such a way as to determine areas of optimum stand- out and M to determine ways of manipulating the point of sale structure to re-direct eye gaze to those areas which would be advantageous in terms of pack positioning freedom. Having established"the methodology in U.K. studies, two major cross-cultured investigations are being conducted in collaboration with Singapore and Mayalsian Tobacco Companies during February/Mareb 1985. The objectives of this work are: (a) to determine how generalisable results obtained in the U.I. are to overseas markets (b) to consider the hypothesis that reading style may be the major determinant of point of sale scanning behavour (c) to IM br"h Anwnmo Tobawo Cc, LaL Thu mm ow be at shmn to unwaborind pasom BATCo document for Province of BritiSh Columbia 11 November 1999 - 21 - demonstrate the relevance and usefulness of such measures in applieA contexts.. A key question relating to visual scanning behaviour Is whether optimised pack positioning stratexies (guided by visual scanning measurements) actually translate Into significant Increases in consumer recall and/or off-take at the point of sale. In order to address this issue, follow up studies are planned with Singapore and Malaysian Tobacco Companies in which research guided point of sale manipulations will be made to a limited number of outlets in the respective market places and post purchase recall measures and sales off-take will be monitored, to be subsequently compared with pre and post manipulation recall and sales from these sites. ,NO 1935 Rntnh Ame== Tobsom Co. LAdL Thu MW am be copod or sbmn to vnavtb~ pe BATCo document for Province of BritiSh Columbia 11 November 1999