1@.
EDIt Lt6
s,*,t;l lk L 0(4-r
Ttte= Stmtwv Review Tom
In Novud= 1989 a Dw structizvet for = in the GrcW vas
prcposed, tbe bmis of vb4ch was that Fundmental reseexch
sbomId be I I on cm establisibmint (W in soufteptm) and
tMt other Gr=V ND omitres should corcareawte on appued R&D.
An axtlim PM prowmw fcr the nm cmitz vas presented to the
MU with a prqmmed btdgft. sinm Ist April, uhm the d=Vm
we= effeCtAd, ttWe have bow a mx*w of vastuzp wft R0 and
Xwftstirg Wxwt=, an =tcome of -*dch is tbo. rw4sed
prograum new pmpowd to the MW, in smany fc=. (A detailed
research I - - g m has bw dixtr@ to the CIC = Directors
fcr fimi vormal).
In the Pm=Aum presented a year ago, ommukrable eqftsis was
pla@ an ruplatory-ttivun projects (reqn-IdiM either to
D=xmt cc articipsted pmum=us), and on inmative Cowepts.
As a rustat of the varlaw mestirsp that bwe tww place this
r4ar tbiS Gqllaz" bas significantly chwW. 7be need to have
tkxmdxts Wxich are m4mricr to 0343stitim 0artioularly Phil4p
11*=iS) is tbG clear QMW priority, amd this iZ rAW reflected
intheirri-ml, ptuldamental I ;Lvgrmmm. 7his wm:k will
wdetpin the cmwi@ effort being dev&Ad to tbis
by the am' led P4D Contras. 7he other sajor dwip is in the
area of ProlIct Iremation: si" the t4a as first
priority the wmk alive at gVeriority of idxtiiig xtylem; of
pro&=1 the ;rimity on research for n4e*-- =ZINts has bom
4 __ in iqx=tM=. Pbully, XT pmvje=x aixed at
different d9areLtm (c. f. ft=Li=) hm bem 1=Wly
shelved.
For corwarderae. the work arms cmmered by the prcpowd prupa=g
are stom in fo= catagornies %bich relate to broad busums
Cbjectives:
1. D=MSW cmvetitivity ____ S=ke gality 14=70mmult.
2. 1 maed compstitbity nwntive pro&imts.
3. ]MW9JM " axqWV to pawfam its buirmn =kw
J=TVw9m91Y restrictive Anamt=y Xvn==.
4. 1 hmhlirq the to I F'm its busirgm uTdw
3:n practice, them are very few pMects that caft1b2te to Cnly
cm of thesis tusiness objectives, bLTt Vam a simjle
f-1A ificatim would be misleadiM, the poift is IIiad*.
The prqxrAd pro;mm fdr the Rvidamwtal. Research Centm is
r\J
now *&Iwad with projects %mqxd m1ft- tbme faxr d;]e=vm:
CD
B.A.T INDUSTRIES P.L.C. - MINNESOTA DEPOSITORY Copy - PRODUCED PURSUANT To VILD, OF
CONSENT JUDGMENT DATED 51"S IN STATE OF fthWESOTA, ET AL. V. PHJLIP__WRW@ ET AL., CASE No. CI-9"565
SMO)m 0=lity Effort Allocation 35%
I. O)MMMIsory
This area of research is concemned with the relationship
of -I,- Chemistry to taste, -11 ard other argancieptic
Xtir-A. There are two I I q abjectives:
(i) to relate chmical and physical properties of smoke,
(across the full delivery range) to smokung
savations as a basis for the developmit of
supwi= pruaicts.
(ii) for low tar/nic: ratio prods:ts, to identify ard
CM the existuq barriAers; to swd=y
accq*ability.
Projects agreed cmw iqmrt and imtotion, --fta
a Irtals:te and the sensations of "bW and "mme4n-till-,
they w:LU relate these Il , to buman Smakin;
behavimw. In arda to )teep this w=* relevant, much of
it wJ-U be undertaken an sup' ssisaW and supplied by
cac C=Pwdm.
A special analytical research team %bich was fam=ly set
up to handle regulatory im , has now re-oriented
to give 0 to the above projects as a first: priority
unless an =gw* regulat=y issue arl
2. InflIMM of Cicaretbe Design on S=ft
As a gowmal cbserviktion PULP YACtriS I
"14ch P=Iwm cigareLtes of good pkvdml propertUs at
IVAW pressure dxCP than W. ftax is =w beliswd
be
the tM!@ Sonia 9:11slity.
is mater= to Mviortigate the
tL relationship bW:wsw physical Wqmtiw of the
rod ani =ddxq quality.
Pessarch will Inc:3,xie the effect of particle dwsity, size
amd sbape and other ; rx , Changes on flow rates and
PCNN= drops. Since SA= and BW have gathered
information In this general arm, this will be reviand
be tto exwt 1 1- - is defined.
Mft= b2aLtuatim
Over Y It yams Soutbanptcn W has pz=W a research
pmect, the purpose Of uhich be$ been. to fird
treatments that r-41 the subse9oft fdwsaticn of xmw
ccq=zm' of intamt to Ro7dators. As a result of the
variow GroW diso i0w, this project bas now broadwad
su:b that qVortunitisswinalso be saxytt, thrxLrp
sbdl= treatments, to nwdmi the fwastion of cospoxxis
which iqxwwe the subjeftive gality of -,ka. mix NJ
PrMect area Um rqpmds to both S=ke Q=lity and
rw711&t=Y objectives.
C"
C:)
C)
PRODUCED PURr ANT To I VILD. OF
B.A.T INDUSTRIES P.L.C. - MINNESOTA DEposiToRY Copy AJ
CONSENT JUDGMENT DATED 518198 IN STATE OF MINNESOTA, ET AL v. PMLIP AfORRA ET AL CASE No. Cl-94-8565
Eawles of projects to be piurmied include:
(i) Generation of flavour precursore such as mino
acids, ammia and mxjar by bio-dumicad processes.
(ii) MW effect of reconstitution pm%xx---ves an smWm
wality-
(i:Li) 7he effect Of dumical and biodxmical prommses
on the fb2zatlon of minor sublose compongntg (Omer
r=ae) -
(iv) 7b& use of activated =rbon or molecular siew
natarials; to r6duce Mir= CORWItibIWItS Of make or
arlhance mmke qmlity.
Frahcts Effort LU20=M,-,_
As a general Winciple spew with ths CAC CoupaIdes, any wmck
in this am will be Ained at dwujnJM Wildi
bl
k
oc
s and not
M
prototype Products.
The wivin pmer't in this catagory rMains ptuiect Qmul= Vhic@
tw
as its obj'-ttv*
d
,
pro
ucts givinV hJQh1Y Udified =Ww
tME123 of Oosposition and delivery. 7bo nein thrust of the
research PrOWame is to cmwt* low tar/nic
ti
=
o pro*xts for
%hich tbers. is both Xm*&JM and jsjZ;@@ w4port.
Whilst a oammIer pmajr-t trW on ths fi;rst spin-off of this
wcXk is currortly bairg wdwW= by SUCO
i
., w
th ennaw&jjxq
X'sults, the furdamental research aJ=d at rvd=M the tar/nic.
ratio furtbw Will include Use of
cast&-shwt Materials
cbmical treatments Of tobacco and micZO-4030apsulated f1ravour
materials.
In the == gw=Ll area of creatiM buildiM b] am of the
isporbInt tmmw is the afficlot Use Of In dftkd
M
the re*tired 0111ratrIstea and sidestZaam d-l1VQrJA.. 3@n =.M
Fmiucts then is an e=aw of in relation to switar
reQuitmefft, and t1hus =ww Of crsstiM Mtn-11g=
j
_1S
=
A=== an beinq pUrsLud.
Although aLl wcm* AimWI at prcdLxdiV a radical altarnetive
PrOdUCt that does not -1 S A on coubustion
(c.f. Prester) has bow abandoned, aw am
9warated an
iftmosstin; now direction. bamd On elutim
f
o
volati
Ie.
m
m
t
w
'a]
s
'
l
be
t
e=
'
l
*
(
l
f'
r
o
ut
im
-l
t
z)
t
h
B
t
m
m
s
f
or
t
o
x
t
z
e
m
o
f
vo
l
a
til
e
3=
t
or
W
s
t
b
a
t
a
r
o
S
W
x
u
er
waigtod in
mq
t
i
de
y
p
c
l
oo
er regions.) This wm* has dxm that the relem of
n' OUTIO, Mthol and SaVaml OUW n&VC=Wft to the , In,
straw can be influenced by the natum of the bir%Urq naterial.
M21S work w:LU conti
nue, and be wd=zW, to include stuliss an
the migration of cmqxurds within the
d
ro
, ard at the
specific re*Jest of the CZC OmpImies, will include =rbw1als;
migratiM from P=twim Materi
l
i
a
s, s
nce these represent a
source of off-taste problem.
r@j
cr,
-M.
B.A.T INDUSTRIES P.I-C, - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 5/8/98 IN STATE OF UNNESOTA, ET AL. v. PHILIP MORRIS, ET AL CASE No. C1-944k%5
PAmlatory Lmm Effort calccation ... 29
1. Tunitim
%
Altkmgh at tus stage crdy USh bas reAdatium that
rAcamtote, estabLL*Am an accepted ratbod for mmamwirIq
cigarette ignitim potm*4al, u3is is cIpmaw to sprew
to other 0aftries. CCRMM ham mt up a task 15 in
utach ST has taimn a prircipal lead. Activities plarvmd
fbr 1991 are:
furtbw collaborative studies. mind at refiriim the
existing test method
ft" evalustiom to mmme ommixtency and
Wdf=ity of ocatim.
In additim to this wcm:k wbicb is largely cmxxwd=ated an
mtbads of meamamawlt, tbere win Ultinately be a
rmwd for =wmzumts that wable predictium to
be node of ignitim ptmtW of cigmettes. Wmk in this
arm win in 1991.
2. Search for RigLvAW
Tbam has bem catsiderable renew of a= a= in the
of Biolajical TastJM, and it is prqmsed that the
followiM pollcy rww uml%Vim the ftb= research
activities in this am-
- BAT wi.11 mmitor tru in the amzgwm of rxw
bioessrys and will demUp mpwtim in *kich
my have relevanm to tdm YLVdacts.
- DeVite the mxmrta@ ampociated with m=,ent in
vitro and their aW34emh414 to comw
t
Imixu tAwts are lim-All
om way - if test
resUts differ significwtly fLcm c=rwit - g they
irdiCate that sme r4mical changs bas o==red and
further n I is reWired.
- Such tests as are curruitly available (Amms,
, oft.) WiU be used to .11 0 TMW
additives, or sigrdficent v P, , I dmqW baiM
explored in PAD to cbeck put=betim frcm the nor&L
- However, cn the kimmis of rmm 1: m I, scdmntific and
mdical mvidwce, tberm to be m justifIcatim
for 2&IW1dM MOM of ze*3=Uq values meamm-ed by the
onm3ntly ffmilAble biculays, ard this will not be an
Objective Of CLmTeft bzdanwftl research.
3. Additives ard Materials Advice
7he Work aria providw a service to cparatuq OcapaniAlsby
reviEdirg inf=mtim an I I I now aIiditives and
NJ
mterials and mkiM rdaticm rwprdim uWir
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Cn
B.A.T lmoumms P.Lc. - MINNESOTA DEposrrORY COPY - PRODUCED PURSUAW To I VILD. OF
CONSENT JUDGMENT DATED 5/8W IN STATE OF MINNESOTA, ET AL. v. PHILIP MOMRS, ET AL. CAsE No. Cl-94-8565
accqytability. it aim naintains an awareness of charges
= lepsiation and review conf=aity of additwm to
specific guidelines. Xt vaintains a databa an additives
C=ou#otxt the BAT Gmip.
Proaktaw used far the assessim7t. of both nem and
adsting zaterials will Continue to be developed in
conjumt1cin with mc
nwiromoftl Tabscoo
EavircIowntal Tdxcoo Smoke =*.iruea to be a =Jor ism-
in the njority of the Graw's ) I , with sowe
rewilatory authorities mcirstim that QRXNUM to ES my
be ha-611 to non and recosounding restriLtion an
%two swo)dM my occur. TI)e I I toss in Scud=q7tw
have bt%iltup a considerable datebm on levels of MS in
il world environeents and have wh' 4 abed these remits
eaL
r
%1,daly. FollcedM the MW HwtiM in Wv=bw 1989, the
level of research an EX ws rs&xmd, but it is important
that we niLintain I 1 1 in this am&.
The 1991 program will contilwe to foct an providing
furdmental in.15ocantion an the dw-4-1 and physical rature of
Els, on personal wpowre detamairiwtiam thLuIgh nicatire
wtabolites, and an subjective aspect of EM.
2. Tttal 9
Althaugh xe*xxd sidestzom produc:ts my 111136ating
opportunities as an invistive product, the =wt 111-1y driv:M
2-ce for bftV&Virq much Wc&xgz Will be wwirmusatal
. Research to daft bas Indicated that certain
conlitructions of dgereitte lesid to low s1destran
@'wdnn, but as yet we bave no ftAmental Of
the =*Aniss underlying this phemannon. it that
this is sturlied in the n9l ; g 1 , in - z I,,, that f=tbar
qVacbmities con be. created. Additionally, own effort will
be devoted to wolorat=y research g' fw lov sidestrean
products in Mxich effectively the Cdg0r8tta 63M not b=
bft puffs.
3. EU= MUMdW&
An a result of the Mm3wting Directare' meating, a new project
has bow initiated, the PrJzary aim of -*14eft is to r-k the
mvUuwwft1 pmblens associated with -'aarette Ix . 7he
= therefore will focus priwipally an the acidification of
C811111 acetaft ?41 to Permit Varying I a of
degradability disguardW. 7his will be done in close
consultation with NW. 0ansukratian, will be given to the
ratn2ALs VWarq up the ti;pUq paper the glue, plu; wrep and
plasticizer, as wall as to the fibtw.
r1i
A chaddist of the ism raised for brausion In this bzdisiontal C:D
research I ; by the Harbeting Directors' and TW meetings in ro
Arjust. and SWtwixw respectively, is sham In Appendix 1.
CrN
B.A.T INDUSTRIES P.L.C. - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To I VILD. OF
CONSENT JUDGMENT DATED 6/8M IN STATE OF HNNESOTA, ET AL, V. PHXIP MORRIS, ET AL, CASE No. Cl-94-8565
Budoet
12W wm3t 1 is based an a tatal afftrt of 58 xw-r-ye&rs 2n
the Flurdmiental 11mmearch OKdxe and will cost 93.885 millicn.
C=Pri=M With 11WI I=Wt WM Uft a=MXTt that the creatim
of the nC twk affect In April smd the fully wnalised rate
f= the nm Cwft* fer that year would ban bow C3.632 axllian
with the Chc =mpmnies). on this kmalm the iIncremse
-. irjf3jidtim is 7%.
It has bow a practice ever years to divide the
allocaticin of catrib*11- to the txdaawftl rummarch
programm by the CW campimies ao==Iirq to the follming
i - , Ig : HAM. 32%; BW 30%, MAZY 19*, 3= 19%.
On tais basis, irdividual all=ati= mad bet:
WW. C1.243M.
B&N ri.1646M.
SkTa CO.738m.
ED.738m.
Quite sepwimrtely, there is a budgetary regairmieft of i296,ooo
for exr=ml cmitracts cn mmkirq and bealth (Sciwitific
PA"Arch QmIP praject g I by Dr. M. Tbc=rbm cn behalf of
the. MC caqvinism). fte caiioparable figure for LM is
C344,000. TraditiormLUy, this is ftzW an equal shares basis
by the four cm*rih*.Uq cmc empudes, and thm for 1991
caftibuticm mild be C74,000.
:@ist:u@ @ft= the= tto budget of C3.985
SCiGiltifiC 1110mearch Qmup Projects. ; 9, sm m, and 0%, 000 for
In term of allocation fammilm, TMM in admd to g either
the bistard beems fcc I I two budgets or to cmaidar an
altwittive Amdirq howis stich lay am sces of tbq tax
PrdgAm aNINXdAted Vith the CUrlift smystem A Wcpml for a
fundirq frOV021A L*drb Partly ratlectS bzmoyw Of the
cmitributim cm;mv is illustrated in Appindix n.
AUVW
21st 11mmember, 1W
cl-
B.A,T INDUSTRIES P.L.C. - MINNESOTA DEPOSITORY Copy - PRODUCED PURSUANT TO VII.D. OF
CONSENT JUDGmENT DATED 5/8/98 IN STATE OF UNNESOT& ET AL., V. PHILIp AfORRIS, ET AL., CASE No. CI-94-8565
Action Cw& Lift from Mrketim Dirwtors- and TSPT WA%J=
Uwe vere a number of actions raised at these two meetings Much wmv to
be o=idered at the neating of the Research Directors in octaber 199o,
for inclusion, if apptupriata, in the fundanalal research v ma m. 7he
foLlowim chacklixt 14 the decisiors of that vawtinq.
1 Projects alned at mstandim the @ U buift ZIL
text* devalwiM products imlm iz !@5
A=
to
It was cacluded that this pri=ity is wall covered in the
C)MWMMS=Y W015t &XM- SigMifiCUlt Parts Of the VAtGrialS SCiMMOS
and Special Analytioal work areas also U%ix subject.
AU relevant informati=I In BP= and BfiW on the effects of physical
properties on wokim qmlity, tmother with vian on what
f=tber inftmatim is needed, will be sent to FW.
2. Cheffasensory n== to M&M bitterness and
With the proviso that bitterness" should be seen in the tatal
colytext of 'aftertaste" and that "harshness" and "irritmtim" are
closely linked, UAs priority is cmwed in the MemosavIory work
Area.
3. A$1g;JaW work to understarid mookerso
Mix is now included in the avwasensory work programs.
4. Delvelooment of iumvvw I I I for WJUL&Ifitim
Ws is not am as a project arm fcr nniamental Pasearct. Bw
will deflnet the soope of and iqAament this project, after
disonsim with othw CAC compnim.
5. Donloo cigarettes with reduced nimt1w n=9
7his priority is covered in the Mwavative Pxvducts arm.
6. 110MMUIle EU=
A new pvoject bas been Inclizied in the zzdamontal resserch
pza;rnm to purmia V3JA pricrity. MW wc& win be dom in
cmultatimVool.laboratim with &x=.
7. Idnitim PotAntial
Aspects of Uiis priority are being: pursued in bott IMC and WN. M3a
two approaches should be om*aementary with no dvaication of
effort.
8. To investi=ts tdbao= leaf W&JW for M1 auality at Various
lzr.kw
A omprehensive revuw of wdstiM informatim, zuch of Vaich is
based an experiments conducted in ftnil, v:Lll be madis by April 1991
by ScIrAft C=.
AIWW C)
IM Wmzbw, 1990
C:)
Go
B.A.T INDUSTRIES P.L.C. - MINNESOTA DFp0SffORy Copy pRooucEo PURSUANT To VILD. OF
CONSENT JUDGMENT DATED S/8/98 IN STArE OF ammEsom ET AL v. PH&JP MORRIS. ET AL., CASE No. Cl-94-8565
Alternative Fundim Flormula
The currm-st percentage split of allocaticm by the cAc cccpmues is based
on a prcposaLl fr= the R&D CD-crdanatcr in 1986 which uas wylifl by the
MW to reflect size of ccq=V and its contmbutim to QuIp R&D and
tAchnolcgy. 7bm lack of a mtbemtical fonula upon which c=Ttrjbt&_jcn can
be explained has bem a socirce of ,, ; Currently NUM is m%1w
pressure ftm tax autboritim to accomit f= its cmtributiom to
owltralized RO and finds the abswce, of a f-111a to be a real wea)mm.
I= bwm similm concerns.
in View of pmd)Ll= a f-,'-% is pmcposed that identifies two
alownts:
1. a fixed by all cortribatorm ref:Le&-irq 'club wegbershipt, i.a.
the benefit of bmirxj the HC fac-ility.
2. a variable cost reflecting the extent to uhich an individual Caqwy
will benefit ftm the researnh i.e. a turnmw related elownt.
7he sinpl-t way to ombine these alements is to m3ke haaf of the total
cost I fi I and the remainder 'variable'. The forniula re=mwdad on
this barmi is:
Ci IR (0.5 x 0-5)
( =i N )
mbere Ci individual contributim (ft)
N 1, r of cmitributors
Ti mt turnmw of cattzibutor in prwA= ymw (ft)
= total net Ummer of contribut-ions in previous yaw (ts)
It I of all centraliad PAD (i.e. mc & Sra) (Es)
In pmctice, to =at tax withocIty requirwmft, the 02tribUticne muld
prd3mbly have to be recalculated at yaw and and =rramticm mede such
that t=xww in the existing year is used.
Tbe cceparism of ciantributions f= 1990 by cmrztries usirxi the existing
-"-A and tbr- raw formilm is as follow:
ndstirq
Now
Fpc
SWIGS TtItal
CDOO
rooo E000
WOO
Bh=b.
1.162
0.086 1.248
1.241
BSW
1.089
0.086 1.175
1.289
BAV7
0.690
0.086 0.776
0.704
0.690
0.066 0.776
0.738
3.631 1
0-344 3.975_
3.972
If the forrallis were agreed, the ally ism to be C=idezW c:)
r\.)
each year am ttw of the Research Pzmgra=es (both CYN
Lrtt@ and w&Arnal) . C)
01.
C)
B.A.T INDUSTRIES P.L.C. - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 5/8W IN STATE OF A*NNESOTA, ET AL V. PHXV MORRIS, ET AL. CASE No. Cl-94-8565