CAC I
Introduction to Item R - Thursday, 14th May 1987
Tobacco I
Following the presentation% on L"Al lqsu*s. on SmokinR Issues, and on
ResSearch and Development. delegates will be invited to discuss the
following questions:-
1. Are there any new initiatives which the B.A.-A Industries Group Should
be takinq on:-
(a) Pro(iuct LiahLiLty Issues.
(h) smoklna@ Issues.
2. The majority of aA7's tobacco %Z.D resources are beinS plated behind
9hort tert-, market drtv(-n sind cast reduction, objectives. e.41. Actron,
Ultra Slim, Arex, smoke quality improvement low toot expansion
processes, etc., and in ensuring an Appropriate response to smoking
issues. Only a very -1nor part ol total R&D resources are spent on
tile 'hasic. 1@n& term research necessar,/ for raore radical product
development. Is the total level of resource (Z:10 million per annum)
adequate, anri "re the proportion currently spent on these objectives
correct?
Tobacco 11
B.A.T Industries' objectives for its tobacco Interests should continue to
envisage a real increase in profitability And cash flow over the next
decade.
Following a review of market trends. of possible opportunities in monopoly
markets and of RAT's nosition relative to competitors, 4aletates will be
invitt-r! to 4tincuss:-
I. Whether it is accepted that erowrh prospects in Tobncco are limited
and hence that the main priority must be to optimise the cash
generation from. the htislnesu-
2. The options and preferred strat"tes for achievinj the objectives for
Tobacco.
LM
C)
BAT Industries document for Province of British Columbia 21 April 1999