PRODUCT DEWLOPKENT CONFERENCE MONTREAL, CANADA AUGUST 22, 23 24, 1990 SECRET qcZjqtG7 BAT Industries document for Province of British Columbia 14 April 1999 DELEGATES PRODUCT DEVELOPMENT CONFERENCE MONTREAL - CANADA (August 22, 23 and 24, 1990) Conference Chairman: J. L. Mercier Conference Co-Chairman: A. Heard BATCO: R. A. Crichton R. Ferris Brown & Williamson: T. E. Sandefur T. E. Whitehair R. A. Fitzmaurice BATCF: Dr. B. Schweitzer R. Bielef eldt Souza Cruz: F. de Andrade M.P. Fox Imperial Tobacco Ltd.: R. D. Brown R. Bexon W.E. Sanders (Conference Secretary) CD 00 U1 C7.- C7% BAT Industries document for Province of British Columbia 14 April 1999 SECRET GHQUPING OF PROJECTS Some projects are somewhat difficult to categorize because they attempt to achieve more than one objective.' In this list projects have been grouped under the heading of what appears to be their primary objective. For example: Many projects, whose primary objective appears to be a Lower Tar/Nicotine ratio cigarette, also have constraints i.e., must also retain Full Flavour/Taste and a list of secondary desirable objectives: 1) Lower Side Streams. 2) Match Marlboro. 3) Reduced irritation. 4) Modified tars - composition - quality - dose. 5) opportunity to introduce unique taste and flavour sensations. CX:) Un BAT Industries document for Province of British Columbia 14 April 1999 SECRET PRODUCT DEVELOPMENT CONFERENCE MONTREAL - CANADA AUGUST 1990 PRIORITIES A. Lowgr tar/nicotine ratio - Priority High 8 projects currently underway. B. Product Superiority - Priority - High 4 projects currently underway. 2 new projects proposed. 1) Need to coordinate all efforts in group to investigate what gives Marlboro its unique product and market leadership position. Must be No. 1 group priority and centralized within F.R.C. program. 2) Leaf aging studies - Assigned F.R.C. C. Reduce Bitterness and Irritants - Priority - High 3 projects currently underway. D. Smokers and smoking Behavior - Priority - Hicah 3 projects currently underway. 1 new project proposed (improve methods/techniques to blind test products). The group considered these projects to be basic/fundamental and should be reviewed at the R&D Conference for addition to the F.R.C. program. E. Additives and Tobacco Smoke Chemistry - Priority - High I project currently underway. CD F. The Low Smoke Cigarette - Priority - High co 6 projects currently underway. co BAT Industries document for Province of British Columbia 14 April 1999 2 G. Bio Cigarette (other noxael Priority High 3 projects currently underway. H. Sioassays - Priority - High 1 project currently underway. I. Proiects of Priority to Only 2 Companies too-, 1) Lower tar plain cigarettes. 2) Reduced ignition potential cigarettes. 3) To develop guidelines to design modified VA and USB products. 4) Low tobacco weight products. 5) To develop novel non-tobacco flavours. J. Proiects of Priority to Only 1 Company 1) To develop more acceptable low tar modified VA and USB. 2) Environmental cigarette. However, all companies agreed that the F. R. C. should concentrate on biodegradable filters. 3) Low or no nicotine cigarette. K. Projects of Low or No Priority 1) Nova (F. R. C. ) Airbus (B. & W.) 2) Alternative materials/structures (F.R.C.). NJ co BAT Industries document for Province of British Columbia 14 April 1999 e#0@1 N) C) OD r1j U11 ---j C:) BAT Industries document for Province of British Columbia 14 April 1999 A-1 SECRET COUNTRY: BAT GERMANY PROJECT OR CONCEPT NAME: TASTE IMPROVEMENT AT DIFFERENT TAR LEVELS COMPANY PRIORITY: 5 GROUP PRIORITY: High (f 5 ranking - all countries) PROJECT OBJECTIVES: To offer more taste and better taste (amplitude and less irritation) while selectively reducing constituents at three levels (11, 6 and 1 PMWNF) . CONSUMER NEEDITARGET MARKET: Need to retain taste character and fullness when deliveries are reduced. GROUP PRIORITY: NJ C.,) E CO BAT Industries document for Province of British Columbia 14 April 1999 A-2 SECRET COUNTRY: BATCo PROJECT OR CONCEPT NANE: GREENDOT COMPANY PRIORITY: High GROUP PRIORITY: High (i 5 ranking - all countries) PROJECT OBJECTIVES: To determine the practical routes to develop products which retain the attributes of a conventional cigarette in terms of appearance and smoking mechanics while delivering a highly modified tar (in terms of composition, quality and dose) with a significant reduction in sidestrem. In particular, to produce 4mg product options (normal and low sidestream) and 1" options (again with normal and low Si ream) with low tar to nicotine ratios using materials which are non-contentious (in terms of regulatory bodies, AMGP approval etc.). CQNSUMER/REGULATORY NEED: : Consumer - Low tar, high taste and satisfaction, social reassurance. Regulatory - Low tar, low biological activity, low sidestream GROUP PRIORITY: High ranking from each company C:) 00 BAT Industries document for Province of British Columbia 14 April 1999 A-3 SECRE-- COUNTRY: BAT GERMANY PROJECT OR CONCEPT NAME: GREEK COMPANY PRIORITY: 5 GROW WRITY; ligh (f 5 ranking - all countries) PROJECT OBJECTIVES: Cigarette with full flavor taste and r ine ial . of a strong filter cigarette but with half the tar level 501% red Ion of smoke in the room. Plus taste acceptance to German Marl b( CONSUMER NEED/TARGET MARKET: Public of health concerned full flavored smokers. GROUP PRIORITY: co Cn -4 LN BAT Industries document for Province of British Columbia 14 April 1999 A-4 SECRET COUNTRY: SOUZA CRUZ PROJECT OR CONCEPT NAME: NATURAL TOBACCO FLAVOUR ENHANCEMENT COMPANY PRIORITY: High GROUP PRIORITY: High 5 ranking - all countries) PROJECT OBJEC IVES: Maintain taste and fl avour while reducing deliveries and irritation. 'Add-back" natural tobacco extracts to enhance taste/flavour. CONSUMER NEED/TARGET MARKET: - Consumer satisfaction - Reduction of deliveries GROUP PRIORITY: NJ CD E. 00 BAT Industries document for Province of British Columbia 14 April 1999 A-5 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: Y1 PRODUCT DEVELOPMENT LOW TAR WITH TASTE (< 15mg TAR) COMPANY PRIORITY: Medium GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: Low tar with taste and satisfaction. Full flavor - ultimate taste/satisfaction. Low tar - something better than current. Changing tar and nicotine ratio by genetically engineered tobacco. CONSUMER NEENTARGET MARKET: Highly desirable consumer need. Market shift to lower tar continues. Difficulty - technologies available but how can it be communicated to consumers? How much of a difference w, -x@ meAninu@:il -:,.ism GROUP PRIORITY: Specific to 8 & W CC) Ln --4 Ul BAT Industries document for Province of British Columbia 14 April 1999 A-6 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: GREENDOT COMPANY PRIORITY: 5 GROUP PRIORITY: High (al 1 countries) PROJECT OBJECTIVES: To investigate the use of tobacco and materials derived from tobacco by various treatments in reconstituted or extruded form so as to give modified tars in terms of composition, quality and dose. A key aspect of this project is the reduction of tar/nicotine ratio; a consumer trial is being completed on the Phase I product. Elution of nicotine and flavourants from tobacco based materials (formely included in Project Nova) will be persued as part of Greendot. CONSUMER NEED/TARGET 14ARKET: High satisfaction at low tar numbers. Regulatory trends in Germany (and perhaps Europe) GROUP PRIORITY: Project ranked high by all countries. The project was expanded to include the work on nicotine and fl avour elution which may have *spin-offm benefits for current products. flat C) E co -4 al@ BAT Industries document for Province of British Columbia 14 April 1999 A-7 SECRET COUNTRY: SOUZA CRUZ PROJECT OR CONCEPT NAME: SMOKE SATISFACTION ENHANCER COMPANY PRIORITY: High GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: Develop lower tar/nicotine ratio products maintaining satisfaction. CONSUMER NEED/TARGET MARKET: Greater smoker satisfaction from reduced deliveries. GROUP PRIORITY: Sam objective as Greendot hence high ranking. Co -4 -J BAT Industries document for Province of British Columbia 14 April 1999 A-8 SECRET COUNTRY: SOUZA CRUZ PROJECT OR CONCEPT NAME: IMPROVEMENTS OF SMOKE TASTE AND FLAVOUR IN LOW TAR PRODUCTS COMPANY PRIORITY: High GROUP PRIORITY: High (f 5 ranking - all countries) PROJECT OBJECTIVES: Increase taste & flavour mainly in low tar blends to compensate for tar reduction - Opportunity for introduction of unique taste and flavour sensations. CONSUMER NEED/TARGET MARKET: - Consumer acceptability and demand. - Reduced deliveries by-regulations. GRWP PRIORITY: This project my be considered as an extension or practical application of the mNatural Tobacco Fl avour Enhancement" Project identified by Souza Cruz. C:) E co Ln OD BAT Industries document for Province of British Columbia 14 April 1999 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: PRODUCT SUPERIORITY NEW TECHNOLOGIES COMPANY PRIORITY: High GROUP PRIORITY: High 6 ranking - all countries) PROJECT OBJECTIVES: - Chemical and biochemical modifications to achieve superior product. - Development of alternative amonia sources. GROUP PRIORITY: Need to coordinate all efforts in group to investigate what gives Marlboro its unique product and market leadership position. Must be No. 1 group priority and centralized within FRC program. rQ co r"i Ln --j BAT Industries document for Province of British Columbia 14 April 1999 8 -2 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: PRODUCT SUPERIORITY - MARLBORO PLUS/ PROJECT SUPERIORITY COMPANY PRIORITY: High GROUP PRIORITY: High (f 5 ranking all countries) PROJECT OBJECTIVES: A better product than Marlboro at any tar level - Better subjective taste quality GROUP PRIORITY: Need to coordinate all efforts in group to investigate what gives Marlboro its unique product and market leadership position. Must be No. I group priority and centralized within FRC program. 00 t-n 00 BAT Industries document for Province of British Columbia 14 April 1999 B-3 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: PRODUCT SUPERIORITY - PROJECT ADVERB COMPANY PRIORITY: High GROUP PRIORITY: High 0 5 ranking - all countries) PROJECT OBJECTIVES: Analytical match to Marlboro (reverse engineering) Provide benchmark to achieve superiority. Understand what separates Marlboro from the balance of the market. GROUP PRIORITY: Need to coordinate all efforts in group to investigate what gives Marlboro its unique product and market leadership position. Must be No. 1 group priority and centralized within FRC program. C--) co 00 BAT Industries document for Province of British Columbia 14 April 1999 B-4 SECRET COUNTRY: BATCo PROJECT OR CONCEPT NAME: AMTECH COMPANY PRIORITY: High GROUP PRIORITY: Souza Cruz 5 Germany 5 BATCo. S High B & w S ITL PROJECT OBJECTIVES: To investigate the potential benefits of Ammon Technology in Va and Mod Va products. CONSUMER/REGULATORY NEED: : Consumer - Taste and fl avour GROUP PRIORITY: High priority in Marlboro markets. NJ CD 00 Ln 00 BAT Industries document for Province of British Columbia 14 April 1999 B-5 SECRET COUNTRY: BAT SOUTHAXPTON PROJECT OR CONCEPT NAME: LEAF AGING STUDIES COMPANY PRIORITY: 4 GROUP PRIORITY: Souza Cruz S Germany 4 BATCo. 5 High 6 & W 4 ITL 4 PRW[CT OBJECTIVES: To investigate tobacco aging for optimal quality at various durations (opposition generally have longer tobacco durations). Aging may vary with tobacco type and climatic conditions of storage. H. B. : The first step will be to analyze previous group studies in this area to determine whether further research is appropriate. CONSUMER NEEDITARGET MARKET: GROUP PRIORITY: This was identified as a new high priority project at the conference. To be reviewed by the R & 0 Conference and assigned to the FRC Program. flat C) 00 Ln OD LJ4 BAT Industries document for Province of British Columbia 14 April 1999 C-1 SECRET COUNTRY: SOUZA CRUZ PROJECT OR CONCEPT NAME: CONTROL OF BITTERNESS & IRRITANTS COMPANY PRIORITY: High GROUP PRIORITY: High (f 5 ranking - all countries) PROJECT OBJECTIVES: Reduce bitterness and irritant sensations in full fl avour cigarettes without affecting taste and flavour. CONSUMER NEED/TARGET MARKET: Increase mildness sensations and reduce bitterness in different ranges of deliveries. GROUP PRIORITY: NJ 00 Ln 00 BAT Industries document for Province of British Columbia 14 April 1999 C-2 SECRET COUNTRY: ITL CANADA PROJECT OR CONCEPT NAME: CRAWFORD COMPANY-PRIORITY: 5 GROUP PRIORITY: Souza Cruz 5 - Germany 5 BATCo. 5 High 8 & W 5 ITL 6 - PROJECT OBJECTIVES: Credibly position a brand as meaningfully lower in irritation and/or after taste than its nearest competitor. CONSUMER NEED/TARGET KARKET: GROUP PRIORITY: 00 Ln 00 Ln BAT Industries document for Province of British Columbia 14 April 1999 C-3 SECRET COUNTRY: SOUZA CRUZ PROJECT OR CONCEPT NAME: IMPROVEMENT OF AMERICAN BLENDED PRODUCTS IN BRAZIL MARKET COMPANY PRIORITY: High GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: Reduction of smoke irritation and harshness, enhancement of taste and fl avour. CONSUMER NEED/TARGET MARKET: - Preempt demand for U.S. type product - and, to produce a superior product compared with Philip Morris. GROUP PRIORITY: Specific to Brazil only. 00 00 BAT Industries document for Province of British Columbia 14 April 1999 SECRET COUNTRY: BATCo - RESEARCH PROJECT OR CONCEPT NAME: SMOKING BEHAVIOUR RESEARCH - ROLE OF NICOTINE COMPANY PRIORITY: 5 GROUP PRIORITY: High (f 5 ranking all countries) PROJECT OBJECTIVES: - Understand consumer effort/reward behaviour. - Can be measured and is highly responsive to cigarette design (quality and time impact of nicotine). - Increasing importance of human smoking vs machine smoking deliveries. CONSUMER NEED/TARGET MARKET: GROUP PRIORITY: The group considered this work to be basic/fundamental and should be high priority for BATCO. Research and FRC. CD 2 00 r*j Ln 00 -4 BAT Industries document for Frovince of British Columbia 14 April 1999 D-2 SECRET COUNTRY: BATCo PROJECI OR CONCEPT NAME: PU14A COMPANY PRIORITY: Low GROUP PRIORITY:- Not ranked PROJECT OBJECTIVES: To determine the significance of impact versus nicotine dose on consumer smoking style - smoking behaviour and sensory perception. CONSUMER/REGULATORY NM: Consumer - To retain satisfaction whi I st delivering acceptable taste. Regulatory - To minimize tar whilst delivering the desired nicotine level. GROUP PRIORITY: Not ranked. To be reviewed at R & 0 Conference for addition to FRC Program. 00 00 OD BAT Industries document for Province of British Columbia 14 April 1999 D-3 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: CHEMOSERSORY RESEARCH COMPANY PRIORITY: 5 GROUP PRIORITY: High (all countries) PROJECT OBJECTIVES: To provide the scientific foundation for the development of low tar/medium nicotine cigarettes with acceptable sensory attributes, by identifying barriers to sensory acceptability, and by further understanding the most important chemical and physical processes in the smoker that explain physiological response. These projects will investigate the science underpining smoke taste and fl avour characteristics, e.g.: impact, irritation, after taste, and this will have benefits for smoke quality improvement in all products. CONSL14ER NEED/TARGET MARKET: Smoke quality improvement. GROUP PRIORITY: Basic research required by all. C:> co T L.n 00 %D BAT Industries document for Province of British Columbia 14 April 1999 D-4 SECRET COUNTRY: ITL CANADA PROJECT OR CONCEPT NAME: IMPROVE TECHNIQUES FOR PRODUCT TESTING COMPANY PRIORITY: 5 GROUP PRIORITY: High 5 ranking - all countries) PROJECT OBJECTIVES: - To develop methods/techniques to blind test products eliminating all biases and not altering the physical/chemical character of the product, i.e.: better method than mmasking" product. - Improve methodologies/time to develop and test products internally. GROUP PRIORITY: To be reviewed at the R & 0 Conference for addition to the FAC program. C:) co (-n %D C:) BAT Industries document for Province of British Columbia 14 April 1999 E-1 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: ADDITIVES & TOBACCO SMOKE CHEMISTRY COMPANY-PRIORITY: 5 GROUP PRIORITY: Souza Cruz 5 Germany 4/5 BATCo. 5 High a & w 5 ITL I PROJECT OBJECTIVES: To provide quantitative and qualitative data on the composition of tobaco goods and tobacco smoke in order to support product assessment required for regulatory purposes. CONSUMER NEED/TARGET MARKET' Regulators require detailed information before clearance for use. Regulatory question - Nis it natural to tobaccou? GROUP PRIORITY: Canada the only exception as additives are not an issue. r%j CD CD BAT Industries document for Province of British Columbia 14 April 1999 WIN F-1 SECRET COUNTRY: BAT GERMANY PROJECT OR CONCEPT NAME: THE LOW SMOKE CIGARETTE CMANY PRIORITY: 3 GROUP PRIORITY: Souza Cruz 5 - Germany 3 BATCo. 4 High 8 & w 4 ITL 2 - PROJECT OBJECTIVES: Reduce/minimize problems of cigarette smoke by passive smoke reduction and reducing the irritating components in the remaining side stream. CONSUMER NEED/TARGET MARKET: Smokers of all existing brands. ro GROUP PRIORITY: C::1 00 Lrl %-0 r-j BAT Industries document for Province of British Columbia 14 April 1999 F-2 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: SIDESTREAM COMPANY PRIORITY: 4 GROUP PRIORITY: Souza Cruz 5 - Germany 2 BATCo. 4 High 8 & W 4 ITL 2 - PROJECT OBJECTIVES: To minimize the social concern associated with sidestream and Environmental Tobacco Smoke by reducing total sidestream yields through product design and innovation. This work goes beyond the technological innovations currently being consumer tested by e.g.: BATCO (50% visible reduction) and will seek to achieve visible sidestream reduction of greater than 50% as well as major reduction in gaseous components with associated amelioration of aroma. irritancy, etc. CONSUMER NEED/TARGET MARKET: Extensive application foreseen on Group products. GROUP PRIORIM. Low market need in Canada and Germany. CD 00 -2 1%J f-4 BAT Industries document for Province of British Columbia 14 April 1999 F-3 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: LOW SIDE STREAM COMPANY PRIORITY: Medium GROUP PRIORITY: High (be ready) (4/5 ranking - 3 countries) PROJECT OBJECTIVES: Reduced side stream (with acceptable subjective taste/aroma) which will be identified/perceived by smokers and not based on ETS reduction. CONSUMER NEEDITARGET MARKET: - Growing consumer concern/social pressure. Public restrictions. - Legislative restrictions/taxation. GROUP PRIORITY: Low ranking assigned by Canada and Germany. C:) 00 rQ BAT Industries document for Province of British Columbia 14 April 1999 F-4 SECRET COUNTRY: ITL CANADA PROJECT OR CONCEPT NAME: VISA COMPANY PRIORITY: Long term GROUP PRIORITY: Not ranked PROJECT OBJECTIVE5: - Acquisition of basic information - Legal restrictions - Low side stream product CONSUKER NEED/TARGET MARKET: GROUP PRIORITY: Similar to Other Low Side Stream Projects CD 00 rN.) Ln %-0 BAT Industries document for Province of British Columbia 14 April 1999 F-5 SECRET COUNTRY: BATCo PROJECT OR CONCEPT NAME: LESS COMPANY PRIORITY: High GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: To produce a low total sidestream version of 8 & H Ultra Mild (4mg, tar in France) without sacrificing the mainstream smoke quality of the existing product. CONSUMEWEGULATORY NEED:: Consumer Social reassurance whilst retaining taste and fl avour. Regulatory Low sidestream delivery GROUP PRIORITY: Not ranked. Very special to one brand/one market. C) 00 0% BAT Industries document for Province of British Columbia 14 April 1999 F-6 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: ENVIRONMENTAL TOBACCO SMOKE (ETS) COMPANY PRIORITY: 2 GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: To investigate, primarily under controlled conditions, fundamental aspects of Environmental Tobacco Smoke (ETS) , in order to provide an information base useful to public affairs initiatives. CONSUMER NEEDITARGET MARKET: Defensive strategy for public affairs. GROUP PRIORITY: Concensus that the ETS Issue or a reduced ETS product will not result in meaningful marketing concepts/opportunities. co BAT Industries document for Province of British Columbia 14 April 1999 G-2 SECRET COUNTRY: 8AT SOUTHAMPTON PROJECT QR CONCEPT NAME: OTHER NOXAE COMPANY PRIORITY: 5 GROUP PRIORITY: Nigh (All countries) PROJECT OBJECTIVES: To investigate chemical, enzymic or other treatments to tobacco that will reduce or increase specific minor constituents of mainstream smoke relative to tar or nicotine deliveries. CONSUMER NEED/TARGET MARKET: - To meet future regulatory needs. - To improve smoking quality of products. GROUP PRIORITY y=: The objective of this project has been broadened to include the words "increase specific minor constituents'. C) E 00 Lrl -.0 00 BAT Industries document for Province of British Columbia 14 April 1999 G-3 SECRET COUNTRY: ITL CANADA PROJECT OR CONCEPT NAME: DAY C014PANY PRIORITY: Long term GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: - Acquisition of basic information - Legal restrictions - Lower biological activity CONSUMER NEED/TARGET MARKET: GROUP PRIORITY: Similar to Greendat 00 Ln BAT Industries document for Province of British Columbia 14 April 1999 H-1 SECRET COUNTRY: BAT SOMAMPTON PROJECT OR CONCEPT NAME: BIOASSAYS COMPANY PRIORITY: 4 GROUP PRIORITY: Souza Cruz 2 Germany 4/5 BATCo. 4 High 6 & W 2 ITL 5 PROJECT OBJECTIVES: To monitor developments in biological testing and for those bioassays with a high probability of introduction by Regulatory Auhorities, to acquire the techniques either in-house or externally. CONSUMER NEED/TARGET MARKET: - Regulatory driven / increasing concerns. - Monitoring role for biological testing protocols. GROUP PRIORITY; Ranked as high priority by Germany, BATCo. and Canada. CD 00 N.) 0@- C:> BAT Industries document for Province of British Columbia 14 April 1999 SECRET COUNTRY: BAT GERMANY PROJECT OR CONCEPT MM: EURO PLAIN CIGARETTE COMPANY PRIORITY: 5 GROUP PRIORITY: SOUZA Cruz 1 Germany 5 BATCO. 1 Low 8 & W 5 ITL PROJECT OBJECTIVES: Pall Hall Plain with maximum of 15 PHOF with as little loss of puff per taste compared to current 22 PMWNF product. CONSUMER NEED/TARGET MARKET: Current plain smokers trying to stay in category despite changes in deliveries. GROUP PRIORITY: High priority for BAT Germany and B & W only. C) 00 -f r%j ON C) BAT Industries document for Province of British Columbia 14 April 1999 ROL COUNTRY: BATCO PROJECT OR COKEPT NAME: AXIS COMPANY PRIORITY: Low GROUP PRIORITY: Not ranked PROJECT OBJECTIVES: To develop 15mg tar plain cigarettes with taste c, surable with the current higher delivery plain cigarettes. CON5UMER/REGULATORY NEEN: Consumer - Lower tar, traditional taste and satisfaction, traditional format. Regulatory - Acceptable delivery within the new limits GROUP RANKING: Specific to BATCo. Similar to BAT Germany Project Euro Plain. C) E co 0% BAT Industries document for Province of British Columbia 14 April 1999 I-2 SECRET COUNTRY: -BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: REDUCED IGNITION POTENTIAL CIGARETTES COMPANY PRIORITY: 5 GROUP PRIORITY: Souza Cruz 1 Germany 1 BATCo. 5 Low B A W 5 ITL 1 PROJECT OBJECTIVES: To Investigate how cigarette parameters affect ignition potential, particularly in the context of a US blended cigarette, in order to develop prototype cigarette designs with reduced Ignition potential. The initial thrust is towards finding a reliable and acceptable method of measurement of ignition potential. CONSUMER NEED/TARGET MARKET: U.S. regulatory pressures. GROUP PRIORITY: No regulatory pressure in Brazil, Germany and Canada EJ - the project is a high priority for 6 & W and some BATCo countries. r11J C:> 00 BAT Industries document for Province of British Columbia 14 April 1999 I-2 SECRET COUNTRY: BROWN & WILLIAMSON PROJECT OR CONCEPT NAME: REGULATORY ISSUES - REDUCED IGNITION COMPANY PRIORITY: High GROUP PRIORITY: Souza Cruz I Germany I BATCO. 5 Low 8 & W 5 ITL I PROJECT OBJECTIVES: Industry support - on a voluntary basis. Developments outside Voluntary Program may have competitive advantages. CONSUMER NEEDITARGET MARKET: - Cigarette Safety Act (87) concluded that it was technically possible. - Need for reliable test methodology. - Present technology (paper) disliked by consumers. - 1990 Federal Fire Study Bill - Standard test method - Compile results - Report to Congress GROUP PROBITY: Specific to 8 & W and BATCo. only. r1j CD E. 00 rQ 01-- C) 4:11. BAT Industries document for Province of British Columbia 14 April 1999 1-3 SECRET COUNTRY: BATCo PROJECT OR CONCEPT NAME: AMPLIFIER COMPANY PRIORITY: High GROUP PRIORITY: Souza Cruz I Germany 1 BATCo. 6 Low 8 & W 5 ITL 1 PROJECT OBJECTIVES: To develop guidelines for designing acceptable modified VA and USB products by investigating the smoking characteristics achieved through combinations of different styles of flue-cured (UK vs US) and burley (heavy vs light) tobaccos. CONSUMER/RE LATORY NEED: Consumer - Taste and Flavour GROUP PRIORITY: High priority for BATCo. and 8 & W. rQ 00 C7% C=) Ln BAT Industries document for Province of British Columbia 14 April 1999 1-4 SECRET COUNTRY: ITL CANADA PROJECT OR CONCEPT NAME: LOW WEIGHT PRODUCTS COMPANY PRIORITY: 5 GROUP PRIORITY: Souza Cruz I Germany I BATCO. 5 LOW 6 & W 1 ITL 5 PROJECT OBJECTIVES: 1. Player's Light stick 2. 809m stick 3. Superoll (1709m for 200 units) 4. Superoll (1309m for 200 units) CONSUMER NEED/TARGET MARKET: GROUP PRIORITY: High ranking in Canada and BATCO. (specifically Australia) which have either/or high taxation. product costs vs. taxation or competitive products which take advantage of tax regulations (loop holes). r10 CD 00 0% C:> 0% BAT Industries document for Province of British Columbia 14 April 1999 SECRET COUNTRY: BATCO PROJECT OR CONCEPT NAME: POKER COMPANY PRIORITY: Low ME PRIORITY: Souza Cruz 5 Germany 1 BATCo. I Low 8 & w I ITL 4 PROJECT OBJECTIVES: To develop overt novel non-tobacco flavours for the modification of mainstream and/or sidestream sensory properties. CONSUMERAEGULATORY NEED:: Consumer - Novel taste and social acceptability GROUP PRIORITY: Only a high priority for Souza Cruz and Imperial Tobacco. E., co -4 BAT Industries document for Province of British Columbia 14 April 1999 J-1 SECRET COUNTRY: BATCo PROJECT OR CONCEPT NAME: BAISE COMPANY PRIORITY: High GROUP PRIORITY: Souza Cruz I Germany 1 BATCO. 5 Low B & W I ITL 1 PROJECT OBJECTIVES: To develop low tar Mod Va and USO Q to 9 mg) products which are more acceptable than existing equivalent delivery products to current full-flavour (12 to 14 mg) smokers. CONSUMER/REGULATORY NEEO:: Consumer - Taste and flavour at low numbers - Satisfaction Regulatory - Meet new limits GROUP PRIORITY: Specific need for BATCO. only rN.) 00 BAT Industries document for Province of British Columbia 14 April 1999 J-2 SECRET COUNTRY: BAT GERMANY PROJECT OR CONCEPT MANE: ENVIRONMENTAL CIGARME COMPANY PRIORITY: 2 GROUP PRIORITY: Souza Cruz 2 Germany 2 BATCo. 2 LOW 8 & W 2 ITL 4 PROJECT OBJECTIVES: Cigarette where all materials, including packaging and filter are biodegradable. CONSUMER NEEDHARGET MARKET: Growing Government/consumer concerned. GRWP PRIORITY: Low with the exception of Canada. However, it was agreed by all companies that FRC should concentrate on an environmentally acceptable (biodegradable) filter tow. Each individual country will research/develop environmentally acceptable packaging components CD acceptable to local requirements. --& co E r-1) CP CD BAT Industries document for Province of British Columbia 14 April 1999 J-3 SECRET COUNTRY: RAT GERMANY PRWECT OR CONCEPT NAME: EXTREMELY LOW OR NO NICOTINE COMPANY-PRIORITY: 3 GROUP PRIORITY: Souza Cruz 1 Germany 3 BATCo. 1 Low a & W 1 ITL I PROJECT OBJECTIVES: Develop a good cigarette while having a nicotine content lower than 0.1". Ideally so low that It can not be measured under current analysis techniques. CON5UMER NEEQ/TARGET MARKET: Reduce the consumer concern about nicotine addiction. GROUP PRIORITY: Low priority excluding 'Host' country (Germany) 00 BAT Industries document for Province of British Columbia 14 April 1999 K-1 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: NOVA (B&W Project Airbus) COMPANY PRIORITY: 4 GROUP PRIORITY: Souza Cruz 2 - Germany 2 BATCO. 2 LOW 8 & W 1 ITL 2 - PROJECT OBJECTIVES: To provide the scientific and technological foundation for the development of alternative, cigarette-like products in which the combustion of tobacco-based material is not the primary source of smoker satisfaction. This work will focus on elution of nicotine and flavorants from tobacco-based materials; it may have "spin-off" benefits for current products. CONSUMER NEED/TARGET MARKET: U.S. research indicates good opportunity for a "smokeable" Premier-style product. GROUP PRIORITY: All countries assigned the project a low priority. The work on nicotine and flavour elution will continue but within the Project Greendot objectives. C:@ _--h 00 BAT Industries document for Province of British Columbia 14 April 1999 K-2 SECRET COUNTRY: BAT SOUTHAMPTON PROJECT OR CONCEPT NAME: ALTERNATIVE KATERIALS/STRUCTURES COMPANY PRIORITY: 4 GRWP PRIORITY: Not ranked PROJECT OBJECTIVES: To identify and investigate new materials aimed at the evolution of components for future cigarettes which will: a) Significantly-contribute to meeting regulatory enviromental or social constraints. b) Improve general smokers performance in order to achieve greater or preferential consumer acceptability. c) Allow opportunities for extending the range of product types offered in the market place. COMM NEED/TARGET MARKET: GROUP PRIORITY: This work is not considered a project or product concept. 00 BAT Industries document for Province of British Columbia 14 April 1999 NJ C) CO - 11 BAT Industries document for Province of British Columbia 14 April 1999