B.A.T BOARD GUIDELINES
SMOKING ISSUES
PART IT GENERAL STRATEGIES
.Notable changes have been made to the attached pages.
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BAT Industries document for Province of British Columbia 22 April 1999

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Com-en-les snc@.16@ t>e -Lra-. ir. -error. par-.s of vie wcrlr.,
re c @, ou, s I E. a ce rs c@ i:l c h ave c on s c a zl e rf I u e nce or. o.: r
i:,Z1V,-zies e.c. mul-.'n-1:4.orial ant. smoizinc issues. As w-.-,Ii other
.Leecers c.' t,--%;or.-.. rz.!@ciojs leaders ha@e a vzews.
*Barley @D - -
agains-, coni;anies suc!-,
inerz are -.ricse na-. &rS. as czrs, tnose
T@i R %O us @.na,: a!,c- neu--ra', , Fr,.c c,,:!,te-s tria'. a-e sL;-wpc,:-.,1ve ano uncersiLanc-
5! -,ne effects t,@r: our car, have. is
-.c :iz. aware --' --ne viz.-@s ant
-.rCS- 4.: Sen','.-r poSltiCnS bv-. !IS: those
vi c -. i ., z a k e a 2pr-.ate o-.,
n thi
rzunities
to esza:lisr. d@alog.;! tc ensure tha-, -.hk.- are eviare cf
the surro.:ncin: our 'Issues anc; Infcrmel. our
cor--:,,t,;.;z,.2ns trc tr:ieir soci*-econor-M.- benefi:s.
re"'.vons are va-iousiv s-.-uc-.jreL'1 ant. -,Fe ty-@e of
'dera:,le care.
app-ca:- we @aKe nez: C be SF-,. ec-.ec -.!it@. cons"
czr,-.- leaders -in ee.-!; cornueit:@-, i: is t.",a-. we
CO n,,z nzaale:?.- such an 1mcorunt or-cup-of people who have cre.--t
F
influence on :he way sc:iezy twiaves and- Tninks.
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(EXTRACT FROM SECTION B - "MaKEE-TING UND ADVERMSINd')
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3. Maximum. Tar an-- Nicotine Limits
3.: G ene ra. 1 v, i m. cs -. t i on o f ma x i fair. tar a nd ni coti ne del i ve ri e s
shoulc pe res4sted, but if the iiposition of sucr. limits becomes
inevita:)Ie or cesirable, attem-,ts shoulit be made to get levels
fixed a rea-s--nWie 'evel W@Icn would not jeoparoise companies'
marketinc szrate,,ii es -It shoulc be borne in mind that once
naxiat@,-. levels are establisned t'ney will almost inevitably be
reduce: by go---ernmeits @r- subsequent years.
t
In ne=,:iatinc govennments, full use should be made of qe
sales -eianter ave-race c@ PMW-NF for the market overall, in order
to prcv@de pe-soeczive in respect of individual brand
4. Declaration c` Constituents
4 . IIn the event t-nat' goverm-nent ins-.st on figures for the delivery
/bands to be placed on packs,
of smo.-e cons:lzuents or tar or--.:ps
companies are ;mrmitted to accece to this but should resist this
as a covernmert requirement in advertising as this will
Ire elm 1@ f
exacerbate the overall smoking and health climate in the market.
11116@vs% in any case sucn requirements are preferable to restrictions on
adver-:-sina. any concession entailing the printing of
floures or arc.;:s/hands or, packets or advertising is mace, Public
Afial,s Department, Mililtiank, should be consulted. (See 6-1-2
Warnin: Clauses).
4.2 Shoulc tne in:',usion of constituents, as a government
reculr----aent, C- packs and-Ifor ir, advertising be inevitable,
compan4es shoal' weigh carefully, bearing -,n wind local
OrCumstances, tne a;vantages arx disadvantages of "banding"
(i.e. "high :-2-". "micCe tar", "low tar" ?t,-.1, as opposed tc the
use c- actu.a.' nu-m5ers.
...J4,.Companies must resist inclusion of the amounts of smoke
const ituents and if dis;lay of some constituents is inevitable,
S" OA60 companies must agree to display oil as few constituents as
PoW:`ie- Con-manies must consul-, Public Affairs, Department,
pric- tc any agreement with government in this respect.
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"Sand'kic" cr "numblers" should always :* at tributec to E
covernnen: au-6hority anc be irtplemervr.co sim. taneously arc.
4zent4c-ally by all memt>ers of the inaustry.
Re'. seats "".5
-e EDeve does no-. preclude the use by ccr.;anies c-' num.)ers
@n respe:: c-' tar and nicotine in brand advertising anc.
comy?4LUVit :romotiona, activities should Vnere De commercial aovar.':_-oe to be
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CILIFO^ C_ lained in sc ocing. It shoul-C be appreciated, however, -:
::inc so will exacerbate the overall SMDkinc anc. heall-n ziimate.
@See B-6.7l.
-2xat,. on as a means to reduce cigarette consum-n-tion or Induce
---T@Irancs.
SMOKers t: s..;,.tcr to ow, tar
governzien:s indicate their interior to emzloy puniz-ve
axation in order to increase prices and reduCc cioare-.-.--.
consvm2t,.or, tnis should be strongly resisted for the -coming
'C'ES013:
w,L:ld hit hardest tnose peorle with low incomes.
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2) 7here is a possibility that pec;le, who as a rest!: of such A
measu-es would only be We to afford to b@jy fewer
c4ga-er.tes, would chance -.heir smoking habits and move to
hiche- -.ar brancs or stroke each cigar;%ze tc the snc-zest
poss-'1:'.e butt lengt@ whicri oover-iments regard as undesirable
on health orounas.
;.no-,ne- result would be tna-6 smokers would switch to cheaper
hand-rolled cigarettes without filze-s which
qcye-nnielits do not regarc as desiranle.
4 Punitive tax can lead tc an overall reduction in consumption
DL;t th-s coule mean reduced government revenue anc
unen.-loyment in the indu;-,ry due to contraction el the
marke,:.
5.2 Gracua:ec, taxation based on tar deliveries, aimed at indjcing
smokers to switch to low tar brancs,-. should also be strongly
resisted on the following grounds:
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It wo@:'d be inequitable to penalise sorcerers in one se:tor of
of tne marke-_ anG would be a limitation of their free-.om of
cnckcz- where the case for and against smoking is wice'v
known.
car
Ex--e--iice has shown that such . res It loss of
re ven-e. illeoal introduction oil ciaare-.-.es from othe-
marke:- and fierce criticism of the autn.,rities im;cE@mg --Ie
tax.
'cl
:t har not been established that a%v com:onent as fc--.d in
cloare-_.e smoke causes human disease.
6.,6 A-_- shouic -esist restrictions or, macia advertising or. trie Dasic
-ound tr---- advertising does not affect to-.z.1 consumpzio--
'owever, -z should recognise that a totally intransigent att".ude
C7,uld lea:'-.o a ban on advertising. The':ndjstr@y, work";
.ogether. snould therefore keep under copstant review 14!.-7-7ted
c3ncessi.-_z such as warning clauses whicr. i,: might have t: make
order avoid more effective restriczions or, advertisino.
6.2 ;Ithoucr. imist be assumed that evidence tnat &aver-.is`!c does
nct affec- total consumption will no". diss@.,ade authorities from
-estric:": or banning cigarette advertising, c@Wanies snould
rzverthe'els quote all available evidence c-@ this kind
.1ecot'at';:-@s w'tr, the authorities.
Use-..' evidence is contained in IVOTAB's paper en:4zled
`Adver-641s--.c Arounentation" and in Market Research Depar--ment's
:Cookie-., 7ne We of Advertising in Deter=11.ining Total %Daccc
:a-nsumpt-_--.` (Se;zember 198.). Also, the campa--ps,
::.TA'6' anc @A%-T, should be considered by ccr.-,anies and NKIs as
effec,.ive -.fears tc resisting advertising restrictions.
E . 3 -e shoul: t-y to ottain the support of o:ne- industries n
resistan:z.-tc advertising restrictions. We shculd a1sc enlist
.ne nelp :f the media and -of the advertising agencies.
6.4 :r, develc:;.nc countries, companies should be aware oil
hate c ", s, adverzis,.,@o and promotional standards current in the wes-.ern
09% world. 7rtv should reallse that certain advertising ap,,-oaches
krAer-M,K*"@ -...ay prov,,%e governments to impose,restrictions as a result of
'nternat-.nal pressures. Additionally, advertising procuced by
companies in the developing world can be used to eMarass 8ATCo
le 8 A -r c4' in the LIL. where it has been stated pul)licly that our pollicy
cz W* %4-.65 is that our advertising is designed to appeal only to
adult smizkers. Aovertisinc: and promctiona- itrategies snoulo
61"J 04 re :nerefore- :e kept under constants review.
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BAT Industries document for Province of British Columbia 22 April 1999

An increasing attack orcnestrated by the WHO is being mounted
against the incustry concernint the destruction of trees for use
in curinc tobacco.
:ormanies sho-.-id take all steDs ta encourage farmers to use
at ernative scurces of fuel, if available and bearing in mind the
Board's paper on energy conse@va':ion. Where this is not
practicable ctnpanies should ens,@re that re-afforestation
programmes undertaken either Dy :.ne company itself or its farmers
are more than replacinc the &.noun-. of trees used for curing on an
annual oasis..
Comoanies sho-,.d prepare documentation covering tne full scope of
their agricul,:@;ral ac,:@Ivllties, 4:,cluding exports, so that details
can be published as par: cf the"r on-going Public Affairs
Proarammes.
@"ocmanies sho@;,d ensure throL;c,@ 'L-wer Public Affairs programme
6nat the meci.: and influent _zl members of Government are fully
4nformed of progress in this area. and tna: the ;ssue is seen in
..s wider na.-.onal context.
7. NF ORMAT I ON
rompanies sh^,.;"d build gradually over a period of time an
S eaz appropriate -Information service. The ob.jective is that incoming
material rela-.-.ng to the activities of the industry, tne company
a-lid its posiVon in relation t-.% tne various issues being raised
can oe storec and subsequently used in a practical way.
Photograpns c-' significant com-,any events, whether comercial,
sponsorship, :- cultural, stouic also be kept. 7hese can then be
used for mat-=-4al wnich the comany wishes to publish locally or
for central ":cuments being pre;ared by BATCo or B.A.T
Lndustries. ._1p in the esuzDl4shment of such an information
service car, suppliec @y PL:@14: Affa'frs Departiment, Millbank.
G. POSITTON PAPE:S
W Companies are expected to prepare their own Position Papers,
taking into i:count their local circumstances, on the various
issues lmpinc-ng an their. locally. These positions should be
cleared in advance through Publ-Ic Affairs Department. Millbank.
iney can ther -@e readily availatlie in undertaking the practice
implementaticr. of Public Affairs Programmes and in responding, if
seemed necessary, to adverse cornent. Gu4delines for these
positions are contained in Par-. -'- c" this document and in other
Background Br,;efinc Pavers that are sent out froz. time to time. N)
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KARC@ 1983
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BAT Industries document for Province of British Columbia 22 April 1999