PresentationtP BATCa~ Board ·121h July 1990 RhD Structure at SoutbamDtan April · BATCo. resumed management control of R&D. Recognising two distinct roles for 90's, set up two centres: 1, FRC SLli~S~ I 2, BtC loss of 43 jobs (22 people) 8bblnanunibhhrrh some shared services R.R, Baker: I,C1Blown Separate buildings · hut adjacent g~ CL13i 1 Fac S~IDt~ Rt~~l~LS lorlhs)wYenlo~us on ~OSG pmjncb. j~~I&i· q Terms of Reference (SLIOE~,.~) Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 ProdudDeve]Poment Steeri~eLGlauo terms of Reference To actively seek out and consider viable product concepts of relevance to the Group on a short to medium term time horizon, To initiate product development projects based on these concepts and progress these to the stage of implementation by an Operating Company. To make recommendations for specific product development and consumer testing in order to allow market validation by an Identified Operating Company. This stage should involve further interaction between the Marketing Department, Millbank, the Operating Company and BATCo. Technology eentre (BTC), To ensure a steady flow of support technology necessary for implementation of the identified product and company needs, To recommend to the BMB the adoption of the annual programme and budget for all Group related PDSG work within the BfC, To provide a forum far the exchange and distribution of product development information based an Operating Company experience. To evaluate, in terms of relevance to market needs, and to approve technical innovations emanating from Research, p Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Prpiect FEU !~~P~(' ~L17~ *5 EEICTI 3 original objectiw ·front efid liftior low deliveg.~~ ~·:·~~~ofil~latachiavde. Project!eoriented to achieve a 9 mg, s~noking like a13 mg, i,e. SL·lst ~ more t~ste at low numbers. This has been successfully achieved · 9 mg, match for B8H IV 30 CQ~)~~Lc~· C~I·vi~:. B?~u~.l. Sc~3t ~ Special Filter, luCL'!!· LSU II; ~ hLcL'·~ ,, R~ ~··e ;.,d"~ 2t:.; ·F~L7 F/I~ ,CC.,.r. ~ R~~: " ... " ~".~t~u ~Cc~l~ Technology uses high level DIET 24%, high nieotine,tobaeco (2,4%) and retains a high pressure drop filter cf. B&H, product charaeterised by high reward far effah Current developments: BA~E US blended version to be evaluated against Marlboro and Marlboro lights. 15X Y·l being used in one variant. Market opportunities now to be explored by Marketing, Flr9iect PEER Objective · use of waste tobacco in BATCo, companies, 5 companies (Ifl, Canada; SfC, Singapore; Sauza Cnn, Brazil; BA'I Kenya; Chiletabacos) an getting or have got the equipment, C: I i I; PDF -!::!!::!!::!.f3 StlC.i: 0111 Cunent product759k UaccollSg starch, for tegulatoq and taste reasons now developing a version with greater than 8016 tobacco, and less starch, For US products where other recon. materials with ammonia are used there is still a feasible route for DEER usage. (SUOE.J Plbiect Plmtech Objedive: to investigate the potential benefits of Ammonia Technology In Virginia and Modified Virginia products and to validate the use of DEER technology as a possible route to introducing this technology, Ammonia has proved effective in: ",, (a) reducing irritation "'! -~7t( (b) enhancing body - ~6~" `"""" ~"n' in US blended products, Two proven methods of introducing ammonia· CPCM band cast (B&W) and EMERGE treatment of stem. Now urgent assessment of ammonia technology in relation to Virginia and Modiiied Virginia, A 3x3 matrix covering 3 modes of ammonia treatment for the 3 tobacco classes shown in o~ ~t~ oe ~ SLIDE,,., o Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 This will: (a) clarify the merits of ammonia on virginia, (b) resolve the quesfion of whether DEER + NH3 is capable of repiacing'CPCL·9 type material" for BATCo, companies in both Virginia and blended products, In the short term a simple trial in which a law delivery brand with high irritation is compared with the same product in which EMERGE has been used on stems is being arranged, Proiect LESS Objectival to produce a low sldestream product to match EOR Illtra Mild without sacrificing mainstream smoke quality, After extensive development work we have a product which is superior to competitive launches (Passpcrt, Vantage Excel), in giving: · a marked reduction in visible sidestream · 50"/0 reduction in particulate sidestream and reduced gaseous sidestream relative to control, · goad ash Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 · no off·taste based on panel testing, Product uses following technology: · 404b expanded tobacco Ft~~LI 4 · Special PDM paper CaC03 eO/o)· MgO (10a/o)·sodium acetate (5%) · Ratio filter· this is a Filtrona development, Dual · PE ribbon of high PD low f~ backed with a conventional acetate C(ter, Allows high level of ventilation, thus reducing CO st,g~~ disptoportionately to tar, l,e, achieve normal GO/tar, luh~W kHIJ)~ AP)A kle~ I~ About to sign supply and licence agreement with PDM (BA'T has patent application), 3 further years exclusive, Dc~li~\i· Consumer tested in France on B&H Ultra Mild this month; focus groups ate being arranged in which a number of communication ideas will be explored, targe trial will follow, Depending on the outcome usage will be broadened'amongst low delivery products, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Proieet GREM~QI Objedive: to produce low delivery product options with high niootineltar ratio and modified tar deliveries using materials that are nonzontenticus tin terms of Regulatory authorities) but offer improved smoking mechanics and sensofl eharacieristics over current low delivery produds, Focus in NATO on 4 mg, tarl0,6 mg, nic, produetto compete with a number of brands in Europe e,g, Marlboro Lights/Gold, Camel lights, Lard Extra (619 mg, range). Technology: Core blend Flue + Burley (cased) · · glycerol added expanded · 70%. ~lpe a Balance of blend Oriental, Burley and Maryland · prcpylene glycol whole blend treated with ammonia lactate to ameliorate smoke high FEClter · paper Iront/CA back, This enables usto get delivery down without high ventilation, Paper retains tar well; ventilating to CA keeping Po up but with a efficient tar filter. Projecttested in Genany with consumers (2600 people), Results awaited, Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111 Other proiects Although PDSG are not strictly short term, they are beyond the 'Explorato~ stage. projects EPCOT (extruded wrapped cigarettes) and LEAST (tadical sidestream reduction using alternative maten'als) are now located in FRC prcgramme~ AIM/SC 1 nth July, 1990 ·- ~fl · Clit; PDF -!::!!::!!::!.f3 StlC.i: 0111