Q re -rs C, [Z,-,i MEETING-OF PROJECT PLANNING GROUP WPGI SOUTHAMPTON I ITH NOVEMBER 1993 Present: R.R. Baker (13ATCo) LT. Caruso (Souza Cruz) R.H. Honeycutt (B&W) FPCT D. Pangritz (BATCF) E.E. Kohnhorst (B&M, T.F. Rlehl (B&VV), G.A. Read (BATCo), L Saboia (Souza Cruz) E. Kausch (BATCF) The PPG awl with the following objectives: Review progress to date of Group Technical Program (GTP), modify as necessary, and consider now project proposals and Implement next set of project status summaries. Standardise reporting of GTP projects across the Group. Decide how to handle patents arising from GTP projects. MAIN POINTS ARISINJQ FROM MEETING 1. Review of GTP IrriDlementatlon In each Centro The GTP has generally been well received by relevant staff at all WmIs in all contras, although some small concerns were expressed: * A small number of long serving staff were sceptical, based on perceived failures of Group research in the post. 0 Some co-ordinators were not yet operating effectively. * There are too many small projects an the GTP. It was generally agreed that tangible results from the GTP needed to be demonstrated by the end of 1994. especially with a view to "providing building blocks for pfoduct/process development". Action All r-J CD N L4 Lq B.A.T INDuSTRiEs P.Lc. - MMESOTA DEPosrroRY Copy - PRODUCED PURSIiANT To I VII.D. OF CONSENT JUDGMENT DATED 5/8/98 IN STATE OF I*NNESOTA, ET AL. V. PHXV MORRIS. ET AL. CASE No. Cl-94-8wa * Review of specific work are a and Prolacts on. I ecnn * technical specialist meeting for this area will be hold In Louisville an 6-9 December 1993. The PPG felt that two of the projects Included in this work area were of local interest only. (Profects 01.01.01, Physical quality of OR and 01.01.02, CPCL processing). The specialist meeting vAII be asked to determine the localigroup interest of each project. and local projects will be removed from the GTP as from the next Status Summary update. Action: RHM In addition, more Information Is needed on Project 01.01.10 (Extruded process (RTS)). Action: DP 01.02 ROOT Technology (RTI Two projects in two Contras are nominally the same: 01.02.01 Investigation of now RT flavours (Souza Cruz). 01.02.06 Investigation of new RT reaction flavours (BATCF). The co-ordinator (A. Rodrigues) vAll be asked to recommend to the two project leaders that those two projects will be combined Into one GTP project entry as from the next Status Summary update. Action: LTC Project oi.02.05 (incorporation of RT into DEER material) was considered to be more relevant to the Recon. Technology work area. it will be recommended to this Recon. and RT co-ordinalors (D. Gordon and A. Rodrigues) that the project is moved. Action: RHH and LTC Two now RT projects were submilled by Souza Cruz: (I) Evaluation of the effect of combustion control agents on cigarette smoke. (0) Investigation of compounds responsible for aroma of reaction flavours used In RT. Both will be incorporated into On GTP. although the RT co-ordinstor will be asked to determine vAether project (I) can be combined into an existing project area. Action : LTC r%l C=1 f*.3 B.A.T lNousTRiEs P.I-C. MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To I VILD. OF CONSENT JUDGMENT DATED 5/8W IN STATE OF A#WNNEsOTA, ET AL. V- PHILIP MORRIS. ET AL CASE No. C1.9"56a A technical specialist meeting on Chemosensory Research was hold in Southampton on 8-10 November 1993. That meeting had made some small changes to the strategic objective of the work area to reflect the relevance of chemosensory research to product development in general. The PPG accepted the followirig modified objective: "Develop a basic understanding of sensory perception of cigarettes In consumers to provide technical building blocks to enhance product development especially towards superior smoking quality". 'Fhe co-ordinator will be asked to consider combining the following groups of projects, (a) 01.03.01 Evaluation and development of sensory methods and methodologies (B&W). 01.03.02 Sensory testing methodologies in BATCo. - to be combined Into one GTP projed on determining the appropriateness of BAT sensory methodologies. (b) 01.03.05 Fundamental understanding of smoke attributes, Part I (BATCF). 01.03.06 Fundamental understanding of smoke attributes, Part If: chemical smoke parametersisensory (BATCF). 01.03.12 Enhancing sensory properties of low tar cigarettes (BATCo). - since all three projects are relevant to low tar cigarettes. (c) Other combinations, e.g. smoking behaviour projects. Action : RRIB 01 .04 Materials Techrioliggly The co-ordinalor will be asked to consider combining the following groups Of projects. (a) 01.04.01 Shelf/pack life studies (BATCo) 01.04.02 Product freshness (B&W) 01.04.03 Protective packaging (B&W) - since all three projects are relevant to product integrity. C) 0 B.A.T INDUSTRIES P.L.C. - MiwEsou DEPosrroRy Copy - PRoDucED PuFtsuANr To I VILD. OF CoNsENT JuDawNT DATED 5/8/98 iN SrATE OF UNNEsom ET AL. v. PHxip MaRge, ET AL CASE NO. CI-94-M5 (b) 01.04.05 Carbon filters - BATCo studies 01.04.06 Charcoal filters (B&W) 01.04.07 Novel filter additives (S&W) Action: RHH 01.05 Leaf Technolow Due to changing work priorities, J. Gaiad was replaced by E. Galina as co- ordinstor of this work area. Sorns promising results were being obtained with one project in this area, 01.05.04 (Biological control of tobacco pests and diseases). with the use of a natural fungus isolated and multiplied at the Souza Cruz R&D Centre. The patent situation should be investigated. Action : LTC The PPG noted feedback from ft SAT Industries Board that the Group was apparently weak In the flavour area compared to cornpatitor companies. Some aspects of the ROOT Technology and World Wide Best work areas are relevant to fievour technology, and cross references should be made to those projects. In addition. some of the Souza Cruz flavour projects are wide and the co-ordinator could consider splitting them, Action: LTC Two BATCo flavour pr*cts could be combined: 01.06.01 Flavour chemistry - Maillard reactions 01.06.02 Enzymic modification of tobacco. Action: RRO The BATCo project on sidestrearn modification (01.06.03) should be combined with work on ashtray aroma being undertaken In Souza Cruz. Action : RRBILTC This work area is the fundamental basis for the design of now cigarettes but in practice little real work Is being done within the Group, with ft exception of BATCF. For example. there is little work being done on filter design, although work an filter materials Is being pursued (environmentally degradable filters, 02.01, and carbon filters, 01.04). The BAT Industries Board has recognised that filter design is a strength of the SAT Group which should be maintained. LAI LAI L4 LOA B.A.T INDusTRiEs P.L.C. - MINNESOTA DEPOSITORY COPY - PRODUCED PUR9uANT To VILD. OF CoNsENT JuDomENT DATED 5/8M IN STATE OF AMNEsOTA, ET AL. V. PHILP MORRIS, ET AL. CASE No. Cl-94-8565 The co-ordinator (W. Schneider) will be asked to review the work area, with a view to identifying gaps in the Group's current work- The review should be available by I April 1994. Action: OP 01.08 Process Technolouy The co-ordinator will be asked to consider combining the following groups of projects: (a) 01.08.06 Enhanced stem and &talk quality (BATCo) 01.08.08 Stem studies (BATCo) 01.00.09 Improving stem sensory characteristics (Souza Cruz) f (b) Three now projects submitted by B&W, which are all concerned with drying: 01.08.13 Fluid-bed redrying 01.08.14 Fluld-bed cooling of cut tobacco 01.08.17 Low residence time high humidity dryer (c) The process projects in general could be grouped, or combined, into the following divisions: leaf re-drying, tobacco drying, application of additives, others. Action: RRB The co-ordfnalor (R.G. Hook) had 3ubmftted a proposal for a joint meeting with the Manufacturing Control Ouality Group to discuss the work and relationship of the two groups. The PPG was not convinced of the need for such a meeting at this stage. Dr. Hook undertook to write a position paper to better define the 300PO and content of the process Technology work area, and how it fits into the strategic ot@jeclive. 02 Environmental Issues The co-ordinstor will be asked to consider combining the following projects. which are all concerned with degradable filters: ' 02.01. 01 Application of MAPLE filter (BATCF) 02.01.02 MAPLE filter materials (BATCF) 02.01.03 Environmentally degradable filters (BATCo) Action: DID 03 Roaulatorv Issues Projects 03.02.01 (BAT Activities within CORESTA) end 03.03.01 (international Standardisation of analytical methods) will be combined into one project. C) L4 -Ah- B.A.T lNousTREs P.L.C. - MINNESOTA DEPOSITORY Copy - PFAMCED PuRSUANT To VILD. OF CONSENT JuDGmENT DATED 5/8W IN STATE OF A*NWSOTA, ET AL V. PHILIP MORRIS, ET AL CASE No. Cl-94-MS Project 03.05.01 will be made more general as "Additive and Materials Matters" and will include contributions from all the Group companies. Preparation of the position paper on additives, as outlined in the Technical Steering Committee Meeting minutes of 12th and 13th August 1993, should proceed as rapidly as possible. Action: RRO 04 &nalvtlcal Technology The co-ordinator of this work area (J. Lauterbach) is involved in other activities for the next four months. R.H. Honeycutt will discuss with the co- ordinator the best way to progress the proposed compendium of analytical methods. AcVon: RHN A project summary entitled 'Analytical Method Development! will be included In dw next Status Summaries, which will list the analytical methods being ieveloped within the Group. Action: RHH A Group meeting on analytical technology is planned for ft first quarter of 1994 - a firm date and details are needed. Action: RHH Val Some confusion W83 expressed over reporting of World Wide Best progress. D. McMurtrle will be asked to clarify what reports are set out, to whom, and when. Major World Wide Best reports and meeting minutes should also be sent to PPG members. Action: RHH World Wide Best Virginia. being undertaken by BATCo. was considered of local interest only to BATCo, and would not be included in the GTP. 3. Now Work Area 06 Product Cost Redu Cost reduction activities in each R&D Centre were reviewed. A now work area will be set up with the strategic objective: "To achieve significant product cost reduction whilst maintaining acceptable physical and smoke sensory properties!. L-4 L04 L*4 Ln B.A.T ImMTRIES P.I-C. - MINNESOTA DEPOSITORY COPY - PRODUCED PuRsuANT To VILD. OF CoNsENT JuDGmENT DATED 5/8W IN STATE OF UMESO-T_A, ET AL. V. PHLIP MORRIS, ET AL, CASE No. CI-94-MS There will be no overall co-ordinator for this work area, and it will include the followitV projects each with its own local co-ordinator 06.01 Project CORE, B&W. D.L. Schulten. 06.02 Low cost Virginia product, BATCo. C.R. Jenkins. 06.03 Cost reduction, Souza Cruz. 1. Volpon. 06.04 Cost reduction, BATCF, P. Henning. Each local co-ordinator will write a one-page Project Brief and give to their PPG member. for Inclusion on the next Status Summary Update. Action: ALL At ft Technical Steering Committee meeting last August, N. Davis undertook to prepare a paper lden.0tying those areas where R&D can have a significant effect on busInS3S costs. This paper is still awaited. Acdon: RRIB Novel Smoking DEdcol The TSC requested that BATCo assess R.J. Reynolds and Philip Morris patent activity in 'GREENDOr concepts, In order to guide possible future work activities. The PPG reviewed the BATCo assessment. and also a similar assessment done by BATCF on'Premlee patents. There may be gaps for row patent concepts in the 'GREENDOr area. although they are probably closing fast, based on RJR and PM patent activity. The PPG agreed: (a) Patents arising out of past BATCo Project GREENDOT work should be filed, and R.G. Hook would assemble the relevant Information. Action: RRIB (b) A position paper would be written by I March 1994, outlining aNsma&e ways of developing lowfultra low tar cigarettes that provide good smoker satisfaction i.e. ways over and above what are currently being pursued in the Group. The paper should oultline what could be done, and how. It is envisaged that sheet and/or extruded tobacco- based material will probably be central to the concept, and that the cigarette should also include low slidestrearn and low ignition propensity properties. R.G. Hook, K. St. Charles and W. Schneider will be asked to prepare this paper. Action: RRB, RHH, DIP Standardisellon of Group sensori testing methodologies lConsumer- piroduct tests The posiflon paper on this subject by E. Kdhn is awaited before any action can be taken. CD .r*z L#4 U4 0% B.A.T lwousTmEs P.LC. MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT To VILD. OF CONSENT JuoamEmT DATED WSM iN STATE OF Aftmgsom ET AL. Y. PNXIP MORRIS, ET AL CASE No. CI-94-M5 4. Patents (Maract Walfard. Datenj attorney. SATC"resentl How to handle patents arising from GTP joint projects, and how to promote patenting concepts by staff, was discussed. (1) Patent attorneys in all Contras should be kept informed of activities within the GTP. Action: ALL (11) Patents with Inventors from different BAT companies should not present any problems. However, British subjects should not file patents whilst outside the UK (111) Clarification is needed by the PPG on any cautions that are necessary with patents - 0.9. could a patent application in one country affectiharm an application In another country?; is there a preferred sequence for filing in different countries? Action : RRS to seek clarification (iv) Surveys of competitor patent activity are made periodically by G. Gercling (BATCF), B. Thompson (B&W) and M. Ward (BATCo). These staff should interact during the preparation of these surveys. in addition, the surveys should be reviewed by the PPG with a view to identifying gaps in the GTP. Action : ALL (v) In term of rewarcling staff for patents, In Germany all employees receive by law, a monetary award of at least 10000M for a patent. In B&W employees receive a plaque and lunch with E. Kohnhorst for each patent O&W is also considering monetary awards dependent on perceived value of the patent. Them are no equivalent systems in BATCo or Souza Cruz. BATCF and B&W will circulate exact details of ftir awards system. for further discussion. Action: RHH, DP S. R*Ports It was agreed that GTP projects should be regularly reported in a standardised way, as per Appendix 1. Each PPG member will personally promote and encourage regular. accurate and timely reporting, Action : ALL 6. 12hedgle for production of next GTP Prolect Brief ang Status Summariel The scheckile is as given in Appendix 11, C) 1%3 4-4 LAI *-4 'To VII.D. OF B.A.T INDUSTRIES P.LC- - MINNESOTA DEPOSITORY COPY PRODUCED PURSUANT CONSENT JuDGmENT DATED 51M IN STATE OF 1141MNIFSOTA, ET At- v. PHILIP AfORIM, ET AL CASE No. CI-94-M5 7. Fulgre Meeffnal Recon. Technology Louisville Analytical Technology Hamburg 6-9 Dec. '93 First quarter 1994 (RHH to d*tenrdne) PpG Meeting Hamburg or Rio do Janeiro - adjacent to SRG meeting mid 1994 (DPILTC to detwrrdne) P0 UA LAI LAI 00 B.A.T INDUSTRIES P-Lc- - MINNESOTA DEposrroRy COPY - PRODUCED PURSUANT To VILD. OF CONISEW JUDGMENT DATED SON IN STATE OF UNNESOTA, ET AL. V. PHILP MORRIS, ET AL CASE No. Cl-94-8565