Tobaccg Stratetv Revteu Funding o[ Group Fundamental Research programme A. L. Ueard Backtround Since dectntralisation of R&D in 1985, the great majority of projects in the SIX CAC R&D Centres are directed to short-to-sedium business objectives. Applied research/development projects and technical support now far outweigh fundamental RLD activities. For the most part the R&D Centres are guided by local demands and their activities are appro%ed/monitored and funded bv their Boards bur much of their work has v.der relevance to ot!ier Group companies. Through the Group information vystem (by which all projects in all centres are sim;1ar1v described. r c.assified and mon--tcred) and the various technical ipt@:.al,-st meetings we seek. to maximise technology flcv within the Group. 7-his is generate, agretd to be working vell. FundAMertal Research Our Fundamental/exploraten- research, addressing the longer term strategic issues, is agreed, steered and funded by the CAC countries. Currently the principal location of such projects is Southampton (and Brazil since they cannot contribute financially to Central R&D) though increasingly other cen-cres are becoming invoi-ed. This catesory of research can be s-rised under four headings: (i) Fundamental Research ( WUE R&D). - This programme divides into projects responding to Regulatory Issues (such as Environmental Tobacco Smoke) and those aimed at improvement of Product Ouality. Projects are agreed and reviewed annually by CAC companies. (ii) Project Airbus MW RM this is our direct response to RJR's smokeless cigarette, Premier, Gii) Project Greendot (BANKE RW - this project aims for a product of very low tar content but normal nicotine delivery. --4 -1@4 BATCO document for Province of BritiSh COIUMbla 23 April 1999 2 (iv) Smoking & Health Research (External) - this comprises a group of projects by medical And other scientific departments of universities, hospitals or other reputable institutions that are identified and agreed with CAC companies. Proxress Funnamen-tal Reseii ch Prstramme - Southampton Important Group projt@cts in the Regulatory area include reduction of specific smoke compounds Cother noxa, ) to levels below their respective threshold limit value. Tobacco leaf treatments ( cttracti on. enzymic etc.) look Pr . For nitrosaminti, howe-. e.-, our best approach Is through tobacco biotechnciogy. A careful monitor is maintained on developments in biological testing of products in general. k limited repertoire of in vitro methods is being built up (either in-house or under contr3CO. chosen on the basis that thev could be used (and indeed are bv R 1 Revnolds with Premier) to compare cigarette brands. A key approach to our work on Env Tobacco Smoke is to set this phenomenon in perspective in relation to otber atmospheric pollutants. This has involved a good deal of real-world monitoring; this has shown not only that levels of ETS constituents are generally low but that many other sources contribute to indoor air contamination. The other approach is to monitor the fate of specific smoke components in terms of build-up and decay in highly controlled environmental rooms. Results of these studies are being published and presented at many external international conferences and more such activities are planned. (-.P4 C) I CD U-1 L4 00 BATCo document for Province of British Columbia 23 April 1999 L 3 A limited basic research investigation into a Fire Safe cigarette has `tarted since this is fasr developing as an important issue in the uSA. Test methodology is bein4 established. Fundamental studies now underwav on the release of nicotine from tobacco at different temperatures and in the presence of different carriers %.:ill lav a basis for improving our cu:rent products and for -reating radically new products. (ii) ProieCt Airbus 'rh.,s projecr represents our cireczz response :@ Premier bv R J Revnolds. Tne ker issues surrounding Premier can t@e summar@SE-1-1 as: P R E M I E R POSITIVI- Very low sidestream FDA I@SUES: - is it a cigarette Zero Biological activity - source of nicoti=e - does it make (infer) health claims Very low 'tar' - is it a drus dispenser Rapidly dissipating exhalate FTC ISSCES: So ash - product description (tar7) Low ignition propensity EPA ISSUES, disposal of butts CONSNER ISSgLL. - is it a technological device - poor smoke taste - ojectionaable aroma U1 -,4 -@4 BATCo document for Province of British Columbia 23 April 1999 Partly to avoid patent restrictions and partly to pursue directions suggested-by limited consumer research an Premier, the concept being pursued for ki has a few important additional targets. Our product should burn down yet produce low levels of visible sidestream and leave a traditional butt. inevitably the product will produce ash which although undesirable for non-smokers. is an accepted feature of normal cigarettes. Overall, however. Airbus should Alm for similarly low levels (less than Img) of conventional 'ta:' as Premier and have broadly similar biological proptrtics. This implies practically no tobacco combustion. Research an Airbus began in February this year fallowing Group discussions an possible concepts and the establishment of a re.Lm bv W; (S full time plus 12 part time technical marketing, legal). We envisaged a 4, year project to reach the stage of machine-manufactured product for test marke:. The Ellis concept (an outer furnace surrounding a fine tube containing components that on beating generate the mainstream .smoke') was chosen as the basic principle with the Jim of establishing a design prototype by October 1998. Based on the Ellis concept as a working model BLI@ have addressed the individual technical challenges in making a smokeable product meeting the agreed criteria. These include release and transfer of nicotine (without combustion). aerosol formation from such materials as glycerol and propylene Zlycol, flavour release/transfer and smoke analysis. The problem of setting up a heat source that produces the right amount of heat at the right time from the outer furnace (and with normal sidestream release) has been a particularly stiff challenge and a major esternal research contract to support this was established. Although S&V have produced simple mock-ups to demonstrate the principles of two possible designs. the goal of ac ha ev I r4 a prototype an which a full project can be mounted by October has not yet been achieved. co 01 BATCo document for Province of British Columbia 23 April 1999 The major problems are in heat management and ir date 1415, LechnoloXv to convert ideas to practical feasibility. V;e expect the project to be six months delayed and March 1989 would seen an appropriate target for the prototype. However. to meet this target. we recommend two approaches: (1) involvement of identified innovat,.ve te,@.=Iaglsts from our other Group R&D centres in advancing tnt Current concept. -,n%c.@vement of the most creative soleness from the Gtoup in developing back-up ideas ir :he event z@@: t@-e current principle cannot be made to work. This requires full of CAC compAnv mana3tze:.-. since t'-tse personnel are fe%; and zeneraily committed to hl-.t, work. I'rtencot There are zany who believe that Premier kand pcssibl-.- Iirbus) 'Are products that will only be serious market contenders in 10 years t i tee. Greendot, by contrast, -is-the BAT v:ev Lscientists and management) of the kind of product that mav crei,:e sizeable ccoorTunities in the izzeriz. The objectives of Greendot, established in Janua:v 1988 are: "To determine the practical route to creatt, .:,.:!:.;n a five year development project, products which retain the attributes z4` a conventional cigarette in terms of appearance. smoking mechanics and taste while delivering a highly modified tar (in terns of composition, quality and dose) with a significant reduction in sidestream. From the outset, the project will incorporate the influence of consumer acceptability into the design of products and will identify the markets ann- zbt degree of consumer flexibility in accepting such products." C) C__,) V1 LJ*4 Un 1@4 00 BATCO document for Province Of BrItISh COJUMbia 23 April 1999 ,k team of six scientists (plus a further b man--tars. -3i par-, time) was Set up in March in a separate smail building on the Southampton Site. s;hilst the technical team set about exploring the possible routes to these objectives a parallel activity in consumer research was initiated. the aim of which being to clarifv attitudes to smoking and tc gain views on possible product concepts. This fork will reach iti- -@:st phase :n December. From this point it will be possible to firm up our product target(s). (a) -;echnic3l Status During this period a number ai routes explorec nad to be abandoned For :-istance, tobacco e:,:raction and pvr@llvsis ;ave '.-r,%: tar -.---,ads but adverse Ames test results. iovever, has pr_-,JuLva a range of four iwtial :esearc@ prototypes that Sive a -.:ide spectrum of smoke deliveries; nzne vet have acceptable smoking characte:asz.4,;s and some would not meet reg-.@.'azzrv standard.; %:.!Pont c2nSider--.it debate (referred to as "contentious"). T@ty compr1se: 1. An "all tobacco" option using a blend, of high nicotine tobaccos and ,.lyce-rol which demonstrate the 'tar'/nic ratio minimum when @using non-contentious product development routes. The 'tar'/nic @s -:1. at a tar' delivery of 5ma. 2. An "all synthetic option employing non-tobacco materials such as inorganic filler, carbon, glycerol and a nicotine algirate complex. This demonstrates the degree to which smoke components and deliveries can be controlled when using synthetic Materials. Biological activity is similar to Premier and 'tar'/nic ratio is 1:1. This option is recognised as contentious from regulatory, aspects since it contains no tobacco yet delivers nicotine. 3. A "tobacco-plus-srnthetic" option employing a small proportion of high nicotine tobacco 0;1) afid a lartt MUCt gf non-tar producing filler (85%). This demonstrates the ability to produce low 'tar' pcoducts, (2as) with low (80% reduction) biological L-4 activity and 'tar'lnic ratios of the order of 5:1. It is not C) likely to prove contentious. C) LTI L.Q 03 BATCO document for Province Of Brifth COIUMbia 23 April 1999 4 . k "tobacco-plus-synthetic" option which contains tobacco but re on ni cot ine fortification to product hiShly modified .tar , /nIc ratios in the range of 2:1 to 1:1. sicatine fortification mav be contentious but the option dots contain a signif icant amount of tobacco (20%) and it is envisaged that the nicotine and flavour components will be directly derived from a tobacco source (as in Premier) which mav overcome the resulatorv constraints. UI --4 co Lk BATCo document for Province Of British Columbia 23 April 1999 8 (b) Future Direction In the light of 6 months experience of this project, it is now I to identi.;v three possible Greendot product delivery Profiles chat mi-,.ht be achieved over a 2-5 rear period. These are:- R E E S D 0 @'er TPM Mg (a) 9 6 Nic Mg (b) 0.8 0.0 @@ ate mg '.Z: PvWNF mg [a-(b+c) ) =d 6.7 1.3 Glycerc.1 mg (e) 3 2 1 PINNGF mg ( 3.7 2 I 1"Tar'/nic [ (d-t)/b) 4.6 3.3 2 1 Bicactivity _e- normal