C-01'NCIL MINUTES FFBI!UARY 6th, 1973 IN A777NDANCT: Ycssrs. L.E. Ricard r.L. ParG E.P. Gage R. M. Gibb T.R. Lamont W.E. Sanders Guest: P.L. Short (B.A.T.)/ cc: S.C. Candlish PP,0.TFCT Fi I ter IC vas roported that the Mechanical development work is on schedule. Lk'!;ES have indicated that there is a high percentage of I'Ienkcrs" .1r. the shrink filter activates earlier due to temperature -And/or the active not being strong . I , enough to hold7the film to tile A nov 11,11ra has been received that may minimize the problem and work is continuing. The firal recipe has not been identified but J.P.S., du Maurier plus one orhcr rccipe are being considered. Along with the choice of rczire, a reduction in the tobacco rod density is being investigated which mny holp, to make the filter activate earlier. It-, order to work Fire effectively, on the filter "Icakcr" problem it was agreed that the necessary Machinery should bc transferred to the R. @ D. area in Montreal To ensure Olat the majority of the consumers are able to experience the shrink effect of the- filter, the Council approved the recorLnenda- tion to c-o to a 25 min. filtcr len-th with a 29 mm. cork tip. This will activate the filter at approximately the 7th puff, whereas the 1 7 r.-n .filter may only work on the 9th and 10th puff. The 25 am. filter will reduce the total effect on tar and nicotine by about 4 to 5 mg s. /2 CD BATCO document for Province of British COIUMbia 16 April 1999 2 Fi Irer Pnvont An n) icat ion Ilic Council agreed thnt I.T.P.L. is to quickly forward to B.A.T. thi, rostilts of the nntont -,earch in Caiiada. Also everv effort is to be I--lade to C1,1rifv the patent application, as our Patent Attorn,!vs have surgested, to cnsurc that B.A.T. will obtain the patent, especially those parts of the application that effectively cover our planned use for the shrink filter and appear to bc clcarly patentable. B . ?I W. Approval was given to R. & D. to forward samples of the Gatwick filter rod to B . Sharinr! of Filter Concept Mr. Short reported chat four (4) countries, besides Canada, are currently interested in'the new filter development - Switzerland is totally con:-aittcd followed bv Holland, Finland and Germany. If the nc%4 filter is a breakthrough in smoking and health I.T.P.L.'s ?0.-ZiLiOll is that it will ev,2ntually hava to be shared with the opposition, but only after it is proven, B.A.T.'s position has not been dcc4ded as vet but current thinking is that they would lilc to establish a riarketinp, advanta-e first, before selling or sharing the idca. Tnis point will be discussed with Mr. P. Macadam. MiArketinc! - Gatwick Phase I of the marketing development plan, the filter concept research phase. was presenLed and approval was given to proceed. The project's objective statement has not chanted significantly since last June, except for the following - the shrink filter is not truly visablv different nnd it only functions for the last part of the cir,nrctte insteid of the entire cigarette length. A mild(er) extension for Player's is still considered as the project brand. The research phase will use four (4) filter concept statements, several varyin!,, graphic filtcr/product presentations, along with copy to obtain the consumers' responses necessary to refine the project concept and to devclop all the other marketing components. The concept executions were developed to cover off the "over sell" as well as the "under sell" of the filter/product. The research will also center on the filter lci)F@Lh Which must now be 25 mm. long. C=) NJ BATCo document for Province of BritiSh Columbia 16 April 1999 All t1io c0nCv1)L5 Lt-VoI011cd u!-.,-d sovoral words Lnr and nicotine, which are noL allowvd within thf, current inditstry advertising code. B%LL, tho Council a.grcutl that it would be difficult to communicaLC tJ1C brnnd without n1elitioning- T. & N.1 and with the new thinking, of the svol' ing and health people to have people smoke milder cigarettes perhaps. the industry should review the advertising code. The Council apreed that a trade marl. application for the word THETU10 FILTER iti to he made prior to its exposure to consumers in the first group research. It was agreed tbat-an international or local P.R. release would be heneficial prior to the launcl) of the new filter. However there I d some simil.-.rities in claims and perhaps product names if ir i!@ nii intcrnational P.R. release. Also the timing of the release !-; vorv Critical. The use of a P.R. release will be discussed at Lhe coall-orence in Canada in March. Vic development prograLn for Switzerland is approximately at the side development, stage as Gatwick. Their first research is completed and tliey have selected the shrink filter over tire Monsanto filter, The project brand for all Europc3n countries will be Lucky Strike. .70,14N PLAVF111 Sprcild. 7na Council approved the design and layout for the carton foil' overwrap for ttic new J.P.S. 20's F.T.H. (The neV carton was approved by Mr. Pari after the meeting.) The Couticil approved the following Marketing plan for the project: Natioiial Distribution Septe7iber 4, 1973. The revised date will allow time for further development work on the packaging and the product. It will also minimize the risk of old design Hatin6e wrapping material obsolescence and it will fit in with the total company field priority plans. Ticket, ini., she now foil pack is considered too expensive ($.31 per M cigarettes more than the old Matin6e package). The launch date of September 4tb will allow time for the development of the new U.V. gold ink package andlor the use of bronze ink on the package. B.A.,r. are currently experimenting with bronze ink on packages and I.T.P.L. is to obtain input from their project. CZ> #q*/4 Zl:b BATCo document for Province Of BritiSh Columbia 16 April 1999 4 Pro0iict 'n)c rcscirch results are Generally favorable on the new Tamy cir,irvttos. But one or two-more months are required to determine whether che sales are confirming the consumer product research. TM-. will ilso allow time for R. & D. to complete their current devolomment propvam to improve the new Tainy K.S. cigarette which cati Lhcn be tesLed and rcady for the Septcmber national roll-out. Ti T@r, I n-z A chnrs@c in the new Tamy cork tipping colour to match the colour of the Mill),ank cork tippin.- was approved. AdvorLiS1.11Z The EnZlish campaign will remain unchanged for the extension, but a new French advertising concept is currently near completion and will be submitted for approval in the near future. COFLS With the proposed revision in packaging, the now Tamy for the September rollout will have a lower contribution, between $.161 per M cigarettes or a maxir-.ium of $.20 per 1111 cigarettes, from that",of the current Matin6e foil pac-age. cost. Brcakrlown: Packap,ing $.08 or $.115 per M Cigts. Tipping/Cigt. Paper .04 Leaf .01#6 'MTAL: $.166 $.201 per M CiSts. ra v i;a c 1, To break even with Matin6c's current level of contribution, Project Tam%, must show 3 national Share increase from 3.2% to 3.42, which is an increase in volume of approximately 80 million cigarettes. Me se calculations are based on the maximum increase in package of $.20 per 4 cigarettes and not the minimum increase of $.166 per M cigarettes.) M7ETIN.' ADY)URNED CD WES:ip rN-) Fchrtiarv Sth, 1973 BATCo document for Province of BritiSh Columbia I 5 April 1999