A T,,'
B.A.T ('U.K. and Export) Limited
Woking
TO FRUM
DAVI) NEWBERRY DlCK BREENTINALL
cc: C Costa
R Ward - irnren,31 Tobacco
REF DATE
RB.-c-mad-Cpae I ft Mav '99'-1
CANA DA - D V7T FREE
I had the chance to have 3n otrline discussion with Richart! Ward on Monday I Ith May vwith
the following points arismg:-
I L3unch - Decmr@bc 199Z - to catch commcnc==t of wirmr holiday travel and in
advance of the 1;0, 6
. - uruner peak travel. This year's peak season hasbeen rrussed.
2. -Irget ("Afflels
(a. Airy.,-,t Dury Shops:
Nfonrzz! -Mir3bel - Operator - U-CS
..;rantc TI - 721 - Operator - AU= t@ QF3
Vancouvcr - Operator - Allders
i oronto T3 - DF Shoppers
Calgary - DF Shoppers
tb", Border Shops -'-'S:Canada - British Coltirnb)3 - -' OUtIMS
(Ontario - 5 outlets
3. 'Incinc,
CLT=t Imperial list price Canadian S-,.I 8 per canon. possibly no price increase :Ws
year.
U4
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BATCo document for Province of British Columbia 14 April 1999

4.
AlIders p.-Ho.-vince 6!
lucs S -=n
DFS
Ideally reduce Lm-cice price by IM. fbr fint month to gain distribution. Only way to
obtain shelf-presence will be to incorpoprate brandwithin existing Impe-I trade Zzal.
Ilicrefore imp-cria: wotild @--ve to :.,c-. than sp3c,- to accommodate.
None apart from presence on she; f as rioted in item 4.
6. 1 abeffing Rtguirernents
A ftuthcr change to requirements is currmitly being negotiated between manufacrzers
and Governrnent. Attached as in Appendix. Possibly requirernent for special tear
sort) will be -emoved due to re%isicn of dury free markirgs on pack carton.
@V
Hard; to estiriate. Better for BA-TUKE to assess a minmairn quantiry for disrrib:.-Lian
to selected outlets it= make iudeemerit.
S. Qber Points
Firm firancial package w--i:!d;couId be influenced by rempro2al arrmz=ent
being made for Imper-WIDy BATME iri Ettrope. A quid pro quo'
Curr=.t arrangr-=t widi In-merial for domestic IaLinch is 1001 . off invoice.
Otht,- costs to be considcr--@ - internal freight and bond-transfer tansacti::%s.
R Br--imall recommends that brand is incorporated fully into L-noeri.,il's'--ralid
'.)Iio to increase benefi- from Imperial's stren Ih
port: a it. Dury Free.
Lawch only the parerit version - Filte. Kines - at outset to establish brain. and
assess poten-zial. One product could be accommodated -ithm Imperial's
axistme 3mvernent. RmRc extensions would have to be zained at the rnverisc
of C,-rnpetition and therefore on the savngh of the parent's performance
project can be progessed when R Ward amends Caribbean Dis-,butors'
Conference 3t the end of May and Ns visit to UK planned for the cnd of T=--.
C,
R BPE\-,-.',,kLT
C)
Ln
L,4
LP4
BATCo document for Province of British Columbia 14 April 1999