NOTES ON MR. J.P. SIKKEL I VISIT TO I.T.CO. CMIADA RY -14TH J.V-.Uk IST FEBRUARY, 1970. Distribution List: R. P. Dobson, Esq. K.E. Haines , Esq. P.Pare, Esq. (Visiting Millbank) P.F. Cathrow, Esq. L.Z. Ricard, Esq. 1.W. Murray, Esq. 'C. Warren, Esq. A.J. Brock, Esq. D.D. Wales, Esq. File C::> C=> co BATCo document for Province of British Columbia 15 April 1999 In my report after my last visit to Canada (November, 1969) 1 expressed the opinion that all signs indicated a new approach to product development and a greater emphasis on smoking characteristics and product quality. Although at that time the contact between Marketing Department and Leaf Blending Department was not yet ideal, and the distribution of Laboratory information from Quality Control Department could be improved there were signs that this could be achieved In a matter of days rather than woel;s. It was, therefore, distressing to find that no progress was made at all in these fields. The lack of direction from MarketinS Department on the one hand, the multitude of poorly defined projects, and the frequent cancelling of projects on the other hand has led to a confusion in Leaf Blending Department which has resulted in unnecessary samples, and smoke tests which must have cost a considerable amount of money. Projects which proved most promising in November have not been properly assessed whilat others which were of no immediate importance have been tested. Mr. Wales, I feel again by lack of proper direction from Marketing Department, has in my opinion spent more energy towards the development of cheaper blends or modified Virginia blends (by, the introduction of Burley tobacco) than was justified for a company which for the everal years suffered a decrease in their market share :f cigarettes. Althou-h the principles behind this blending work -0 were sound and Must have yielded valuable information I fool that more would have been gained by a more limited and more directed approach to say Maxim- five projects. One of those could be the development of a modified BATCo document for Province of British Columbia 15 April 1999 2 Virginia cigaretto and another a study in the affect of higher stem and PCL usings in combination with the introduction of hiZhcr quantities of the new t.-iore flavour- ful and riper grades. No experiments have been made with the application of humectants or sugars on that se of the blends which has very low aquilibriu= moisture content as recommended in my last two reports. Samples will now be made, but the percenta-e of this type of tobacco in the recipes has already increased drastically. I'he danZer of drying out of cigarettes and shorts formation in the factory has now become imminent. No system of distributing Laboratory information in a form similar to that used by SCL has been introduced. A first report came out on the 12th January which gave the results of the last 6 months.. This contained results of 37 brands but of no brand more thnn two complete results were given. Of the eight best sellers on the market there were two brands with two results, two brands with 1i results, two with one result and two with i result. This summary will not give any useful information and in its present form I have no doubt that it will just be filed. Some brands are tasted weekly but the results of these tests were not zu=arised in the above mentioned report. A meeting will be held to got this vrogra=e started and it is hoped that very soon a form is developed which will give meaningful information to MarkotinX, Leaf and Production. The 1969 Ontario crop is.of excellent quality and contains a large amount of ripe tip, leaf, cutter and sandleaf grades. CD Imperial Tobacco. Company Canada is buying a large share of theso grades and the hogsheads packed are of a very high standard. The ch a-n,- a of I.T. Co. Canada's buying M CD BATCo document for Province of British Columbia 16 April 1999 policy and the pressure on loll nicotine grades have, a3 expected, resulted in a sharp increase of the price of this type of tobacco. Unfortunately this has resulted in the cancellation of over I million pounds of sandleaf tobacco by B.A.T. U.K. and B.A.T. Holland. The buying team in Ontario has reached even hiZ,her standards than last year and the now grades seem to be well known to all buyers. Grades are very well controlled and bought at Competitive prices, when possible. 7lie team spirit is very hi,mh and the quality consciousness could set an example for the whole Company. The buying programme was based on a percentage share of the forecasted quantities in the crop. This system has its dangers ax it is not based on the cstimated usings for existing brands. A leaf blenders first task is to maintain the smoking characteristics of existing brands as long as Marketing Department in satisfied with these characteristic s. For this one has to havo confidence that Marketing Dopartment indeed is thinking in terms of smoking characteristics and I have the feelin.- that this confidence does not I exist. I raust confess that I am inclined to share this opinion. During my stay we have set up a now requirement 6tateirent. which should be seen as the racor.ncndation from Leaf Blending Department to Leaf Department with regard to the grades which must be purchased to Zuaranteo the smoking quality of existing brands. The total requirements were some 10 million pounds lower than the quantity I.T.Co. Canada intends to buy. This extra purchase will be made for political reasons. It must be clearly understood that any purchases made over and above the requirements wil:l be deducted from the requirements next year. Under no circumstances should blends be changed because some of the grades show long duration resulting from this extra purchase. C= There-still seems to be a tendency in Imperial Tobacco corapally I a Lear Department. especially with t110 clerical BATCo document for Province of British Columbia 15 April 1999 4 staff to propose blend changes with the sole object of .5 traish tvid out durations of individual gradcs. A change has been recommended for the target durations for the different types of Srades. Sandleaf, Lug and Cutter target durations have been shortened and those of two side and three side leaf and tip grades increased to 28 months. This was done because it was felt that the heavier bodied tobaccos would'bcncfit more from a lon'sor street than the thinner tobaccos. Tho overall target duration was not chnnSed by this move. The stock position of Burley tobacco per.31/12/1969 was 38 months whilst it is expected that the new crop will add another 16 months duration. It can, therefore, be expected that the duration per 31/12/1970 will be 42 months. I Leaf Department, London has initiated experiments with Canadian burley in Denmark and Jamaica. Even if these experiments are successful the total yearly usings in both countries combinad will be too small to have a marked effect on the duration. I remarked earlier that Leaf Blending Department might have put too much emphasis on experiments with blends including burley. This obviously must have been caused by the extreme duration of the Burley stock. I do not share the optimism of Leaf Department, Canada that an inclusion of 51% or 101,0' Burley cannot be detected and I would suggest to tread very carefully when introduction in existing brands is contemplated. Unfortunately I was not In a position to assess samples myself due to an aftermath of Asian Flu. The Whole question Of a3sessin- and testing of ciSarottes in still a problem. The Taste and PI avour Workcin_- Party system is not regarded as ideal in Canada. I received & copy of a memorandum from Mrs. H. Schiff who studied C=> the method in R. & D.E. Southampton in which she voices (=> C=> some strong objections. I intend to send this to mr. J. Wood for cor.iraents. BATCo document for Province of British Columbia 15 April 1999 Although I a5roe that several problems exist in this system 1. have e.-,plained that Leaf Department, Millbank have successfully used the services of the Taste and Flavour panels and that It has been of great assistance-, especially in the field of assessment and qunntifLcation of Amplitude, Impact and Irritation. Theso are the three main problem areas in Canada and, therefore, I feel that the Taste and Flavour system should be given a bettor chance than so far has been the case. It is a lolls time ago tha@t Mrs. Sch-; f f visited R. & D.E. Southampton to Cm.aliarise herself w ith tho technique and I would suggest that a visit from an export in this field from the U.K. would be beneficial. As the panels in the Imperial Tobacco Company are the responsibility of R. & D. it is my opinion that a visit of Xr. Wood would be more beneficial than one by 14r'Diproso, who although very skilled in the technique miZht became frustrated by scientific ar,mments brought up against the system. During the visit a recon=endation for a blend, process, casing and flavour was made for Hollandin Regular pipe tobacco. Samples are expected to be ready for smokinS by the and of February. SMNAIRY All facts'mentioned in this report were discussed 'With the people concerned and in a large meeting on the last day of my stay. Mr. Warren has drawn up a flow chart of the functioning and interconnection of the different departments involved in product development, which again confirms the decisions taken in July last year. Mr. Xurray in also reorganizing Marketing Department to enable it to get the right contact with product c::> development. Ile Lalso will reassess the projects on hand C:> and he feel* that Marketing Department-will ask only for C=) NJ BATCo document for Province of British Columbia 16 April 1999 6 the development of three major projects. Nevertheless I feel that no flow chart or scherm will be functional as long as no groater personal involvemant Is Achieved. Follow up visits from Leaf Department, London will be necessary. It has been Agreed that R. D. Lowe will visit Canada in the Summer of 1970, especially to discuss casings and flavours. Other visits it was felt wIll, however, bo necessary* In July, 1969 it wag agreed that after the Leaf Blending Departmont was established in X.T.Co. Canada that D. D. Wales should visit Europe, especially the U.K. and 00@ Germany. I agreed with Mr. Warren that this visit should not be made this year as clearly the system is not yet working satisfactorily. N-) c::) BATCo document for Province of BritiSh Columbia 15 April 1999