COPY F11/VC/38 15th Nfarcii, 1976 To: MR. N. E. WILLIS RESEARCH POLICY CONI-NUTTEE Extract from Minutes of meeting held on 2nd March 1976 S. Place of Machinery Development in R & D Dr. Green said that he found difficulty in developing recommendations about this subject and thought it would benefit from an "airing" in the Committee. In the past, he had felt that the advantages accruing from this type of work had benefitted Molins very considerably, but there was a residual benefit to BAT in that it had led to the existence of a highly skilled team, involving the development of Q.C. methodology and electronics expertise. He thought the role of R & D in this area must be re-examined. Mr. Stewart Lockhart and Mr. Sheehy both felt it might be an inappropriate area for R & D, e4pecially when recovery of R & D expenditure is difficult. First thoughts were that factories were the proper place for improvements in machine efficiency and companies should bring pressure on Molins, Hauni, etc. to answer general problems such as productivity,, noise, fault detection, etc. Mr. Sheehy proposed that a paper*should be prepared setting out R & D thoughts on the continuation of this work for pre-circulation and that Mr. Bowra and Mr. Willis should attend the next meeting to discuss the paper. N.E.W. - I understand Dr. Green would like you to prepare the paper referred to for circulation prior to the next meeting. BATCo document for Legal Services : Health Canada 22 October 1999 FH/VC Sth December, 1975 To: NIR. D. J. WOOD RESEARCH POLICY COMMITTEE 0 you. The following R.P.C. Minute will be Of interest to Para. 6 Mr. Sheehy asked that the next Group Research Conference should consider the need to undertake further work on the effect of Pressure Drop on smokers' behaviour and preference. le- BATCo document for Legal Services : Health Canada 22 October 1999 FH/VC Sth December, 1975 To: MR. N. E. WILLIS MR. P. J. NICHOLL RESEARCH POLICY COMMITTEE The following R.P.C. Minute will be of interest to you. 1. Para. 4 Dr. Green emphasised that, while the development work on PRT-71(B) at Glory Mill would be completed successfully by 31st March, 1976, the biological research programme on samples of normal and hybrid PRT materials would be continuing for 2-3 years. The Glory Mill plant would be kept if IED decided to use PRT as a waste utilisation process (subject also to Counsel's opinion on infringement of a Kimberly-Clark patent). If IED's appraisal was that it was only marginally attractive, consideration might be given to a small subsidy to keep the pilot plant availabe for further development experiments. If 'the appraisal was unattractive to IED,1 the plant would be sold to Wiggins Teape, but consideration would be given to retaining the key man (on secondment to GR & DC) until Brazil were able to come to a firm decision. Indications are that the cost of leaf in Brazil would make PRT profitable by the time a plant could be constructed. The question of possible interest by B.& W would be considered at a PRT Steering Committee meeting early in 1976. CD Cr,% BATCo document for Legal Services : Health Canada 22 October 1999 FH/VC Sth December, 197S To: DR. S. R. EVELYN RESEARCH POLICY COMMITTEE The following R.P.C. Minute will be of interest to YOU. is 3. (a) Hunter Submissions Dr. Green explained that a Phase 1 submission on BATFLAKE was being made to the Hunter Committee as an insurance safeguard against possible questions from overseas countries in which it might be introduced. The RPC endorsed this policy and approved the idea of "piggyback" submissions on 'Cytrel' and INSMI at minimum cost. BATCo document for Legal Services : Health Canada 22 October 1999 RPC 21 I RESEARCH POLICY COMMITTEE 9th Meeting held at Millbank on 18th November, 1975 Present: Mr. C. H. Stewart Lockhart (in the Chair) Mr. P. Sheehy Mr. B. P. Garraway Dr. S. J. Green I Dr. D. G. Felton 1. The Minutes (RPC 19) of the previous meeting were considered and the following matters were raised:- Para. 3: Dr. Green corrected his estimate of ITL expenditure on smoking and health r,)search to E1.5-2m, out of a total expenditure on R & D of E3m. Para. 4: Dr. Green emphasised that, while the development IV 4'c- W work on PRT-71(B) at Glory Mill would be completed ;1 71W successfully by 31st March, 1976, the biological research programme on samples of normal and hybrid PRT materials would be continuing for 2-3 years. The Glory Mill plant would be kept if YED decided to use PRT as a waste utilisation process (subject also to Counsel's cpinion on infringement of'a Kimberly-Clark patent). If IED's appraisal was that it was only marginally attractive, consideration might be given to a small subsidy to keep the pilot plant available for further development experiments. If the appraisal was unattractive to IED, the plant would be sold to Wiggins Teape, but consideration would be given to retaining the key man (on secondment to GR & DC) until Brazil were able to come to a firm decision. Indications are that the cost of leaf in Brazilwould make PRT profitable by the time a plant could be constructed. The question of possible interest by B & W would be conGidered at a PRT Steering Committee meeting early in 1976. C=) Para. 6: Mr. Sheehy asked that the next Group Rosearch Conference Ehould consider the need to undertake further work on the. effect of Pressure Drop on smokers' behayiour and preference. co BATCo docurnent for Legal Services : Health Canada 22 October 1999 - . 2- Para. 8: Dr. Green reported that Brazil were not interested in undQrtaking the exploitation of solanesol and he would take the matter tip with B & W and/or Canada. 2. Group Research Objectives, Expenditure and Finance The R & D Budget had been considered at an earlier meeting, at which Mr. Garraway and Dr. Green had been asked to write a joint paper on costs, cost-sharing and a Group Research programme for discussion at the next Group Research Conference as a basis for a paper to the Chairman's Conference at Rct Springs in 1976. Dr. Green suggested that the Tobacco Division Planning meeting would logically lead to the establishrqen~ of Research Objectives around which a Group Research prograrnme could be formulated. Mr. Sheehy stressed that this should be interpreted not merely in terms of current costs (as in RPC 18), but should give forward estimates over 3 years with a 5-year projection. Dr. Felton was asked to revise RPC 18 for the next meeting, in the light of the then-currenT Programme and to enquire from the overseas research centres whether they had found the presentaT.ion helpful. 3.(a)Hunter Submissions Dr. Green explained that a Phase 1 submission on BATFLAKEE was being made to the Hunter Committee as an insurance safeguard against possible questions from overseas countries in which it might.be iptroduced. The RPC endorsed this policy and approved the idea of "piggyback" submissions on 'Cytrell and INSMI at minimum cost. 0 (b) "Cross-over" experiment Dr. Green outlined the thinking behind this concept and reported that an experimental plan was being prepared and costed. It would be discussed at the Group Research Conference. 4. Appraisal of RD Reports The Secretary had circulated a paper -(RPC 20) outlining --J an internal appraisal of reports which had receivcd a secondary circulation. In view of the cost of producing and mailin--a reports, Mr. Stewart Lockhart and Mr. Sheehy asked whether all reports should be circulated or wheth-ar only summaries wculd be .adequate for the Research centres. Dr. Grepn and Dr. Felton BATCo document for Legal Services : Health Canada 22 October 1999 -3- were asked to raise this at the Group Research Conference, but it was made clear that the whole report is required in most research laboratory situations. 5. Policy on Patents Dr. Green sought the advice of the Committee on the coverage to be sought for patents relating to filters and other product modifications. It was suggested that patents might be offered to a wider list of territories than at present on the basis that the territories bear the cost of patenting individually and that, if the patent is worked, a royalty could be payable to the Centre. Dr. Green said Mr. Morini was at present preparing such proposals. 0 6. There was no other business 7. Next Meeting - Tuesday, 2nd March, 1976 at 10 a.m. at Southampton. I Distribution: Mr. C. H. Stewart Lockhart Mr. P. Sheehy Mr. B. P. Garraway Dr. S. J. Green Mr. B. G. Pearson (2) DGF/AIW/1.1.1.9 24th Novembpr, 1975 N-) BATCo document for Legal Services : Health Canada 22 October 1999 Dr. S. J. Green Dr. F. Bas lasi blillbanl TH/AXW lot November, 1974 Research Polley COMIttes, further to your request,, we have prepared the enclosed note#, which attempts to outline the development path through which a new pack, such as the proposed Irrame* pack, could move. I an enclosing five copies of the document, together with a 200's bundle made up in the same style and containLnq two dif forent. forms of the pack (Type I and Type 2). i Enc. cc.- Dr. D. G. Felton I 0 N-) BATCo document for Legal Services : Health Canada 22 October 1999 PROPOSAL FOR DEVELOPMENT OF THE 'FRAME' PACK TO THE STAGE OF A MARKETABLE PRODUCT. THE CONCEPT: (See appended drawings) The 'frame' pack was conceived as a response to the awareness of potential material supply shortages in the future which could be brought about by expanding demand and diminishing resources. The intended design dispenses with the inner bundle; consists of a boarE carton frame of minimum area forming the top, bottom and sides and having two flanges which border the front and back faces. A printed wrap (Nyo.1) provides a front and back panel and incorporates a tear tape. Removal of the tear tape allows restricted access to the cigarettes via a perforated section built into the top of the frame. The design 'requires that the printed wrap is firmly attached to the frame, apart from on its top face. This might be achieved by heat shrinking, or perhaps by appropriately heat sealing. An alternative design (No.2) uses a printed paper label sealed to the frame and covering the face, back and sides only. In this fonn a conventional transparent wrap would be used. PURPOSE: The basic purpose of the invention is to provide a pack using a minimum quantity of paper/bcard, whilst providing . good quality appearance, adequate physical protection, acceptable functionality, ease of disposal and reduced cost. MATERIAL SAVING: Compared with a King-Size hinged-lid pack, this pack uses about 60% less carton board area in 7.6.7 form and over 705% less in 2 x 10's form. This includes inner frame saving. Thus the pack could allow full production to be met on current binged7lid and shell/slide brands under conditions of considerable carton board shortage. BATCo document for Legal Services : Health Canada 22 October 1999 EOTENTIAL MATE-RIAL COST SAVING: The approximate cost saving which could bc realised by converting a F-rig-Size H.L. brand to ibe proposed pack would be in the order of 25'io' of packaging materiEJ costs ;.p to and including 200's wrappinas, based on I.E.D. costs for S.E.T.K. on a brand of. 500, 000 mille/year materials saving would be Z30,000 (1973/74 standard costs) and E43,000 (1974/75 estimated standard costs). Similarly on a brand the sizp of S.E.F.K.-I.E.D. (some 3,000,000 mille/year), 73/4 materials saving would be Z180,000 per annum, and 74/5 materials saving would be t258,000 per annum. k.B. In these estifnates of material cost saving, no account has been taken of the.estimated capital and revenue expenditure required to reach a production stage. APPEARANCE: Reverse printed plastic film *is claimed to provide a high impact presentation compared with the more conventional style of packaging using printed paper or board and overwrap. This has not to our knowledge been exploited in the cigarette industry - apart from J.P.S. which lost the basic attraction with overwrapping. PHYSICAL PRO'_r~`CTION: The overall crush resistance of this pack is one-third to one-half that of the hinge-lid pack depending on board grain direction. FUNCTIONALITY: The acceptability of the pack as a cigarette dispenser to the consumer has yet to be determined. DEVELOP,MENT OF THE CONCEPT: The following schedule itemises. the main stages envisaged in the pack development showing estimated revenue and capital expenditure based on 1974 prices, and probable time scales. -j 2 BATCo document for Legal Services : Health Canada 22 October 1999 Estimated Expenditure W Estimated Stage Timo Capital Revenue 1. preliminary pack evalua- tion and sample produc- tion. 3,000 6 Months 2. internal consumer reaction test. Soo 2 Months .3. Feasibility study on packing operation . 'Work by converters. 20,000 2 Years 4. Market research product. 3.000 2 Months 5. Design and development I of a prototype machine. 1, i Converter setting up production facilities. 50,000 200,000 2 Years 6. Market research product. - 3,000 2 Months 7. Test market product. - 6 Months a. Production machines (6 off). 300,000 2 Years TOTAL: 350,000 229,000 7-12, Years The attached graph illustrates the time/cost relationship of the schedule. The following notes summarise the va.rious stages in the schedule. Staqe 1. Preliminarv Pack Evaluation and Sample Production. To comprise (1) An evaluation of the potential performance of the package using simulated storage, transportation and consumer use tests in order to establish the pack specification; (2) Negotiating the production by a converter of a) reverse printed beat sealable poll-propylene film in a selected brand design, and b) frame blanks made from a suitablb carton board; (3) Arranging for the production of suitable cigarettes (correct size, brand name, etc.); (4) Hand preparation of samples for Stage 2. Z__ 3 BATCo document for Legal Services : Health Canada 22 October 1999 Internal Consumer Reaction Test. Stacle 2. Market Research Department to undertake within Millbank, a limited,consiLmer reaction test using a mixed panel of up to sixty smokers.of hinged-lid - or shell and slide - brands. Staqe 3. Feasibility Study. Development of a pilot scale machine to test the feasibility of the pack and its marketing potential. Parallel co-operation by converters to produce frame blanks.and if necessary to adjust the design to aid machinability. Staqe 4. Market Research Product. To carry out a market research test on the pack in a pre- selected market using samples produced on the pilot machine, to an agreed productspecification. Staqe 5. Design and Development of a PrototyjRe Machine. To design and develop a packing machine which is at least comparable in both'speed and efficiency to existing production machinery, and can, if necessary, replace them on a large scale. N.B. It is considered that the forming operation of the frame pack is comparable in complexity but different in form to the hinged-lid packing operation. Stage 6. Market Research Product. To carry out a market research test on the pack in a selected market, using samples produced on the prototype machine of a brand design chosen by Marketing to meet a specific market requirement. Staae 7. Test Market Product. To use the prototype packer over a period of six months producing packs for a test market of the product in the selected market area. Staqe 8. Production of Packinq Machines. To produce, say, six pack~ng machines over a period of two years, to increase the brand volume to about 120 million cigarettes per m onth. NF/R11 (N. Ln '1 /'7 A A (_71 BATCo document for Legal Services : Health Canada 22 October 1999