Note to the BATCo Management Board
Research 6 Development
1. Co-ordination of Group 140
Following the structural change In the Organisation of R&D In
the Group which took effect in April 1985, the key elements
that have been set up to ensure the co-ordination of R&D among
the CAC R&D contras are:-
(I) a Group R&D projects database
(II) an annual Research Conference
(III) sp*cialist technical meetings
(IT) collaborative research projects.
The Group database has 'Group' and 'local' projects for all
six contras classified by business objective, depth
(fundamental, applied, etc.). functional relevance (marketing,
production, etc.) and several other parameters. The system
carries effort allocation for Individual projects, thus
enabling effort to be monitored across the Group in relation
to agreed priorities. A project progress reporting system is
currently being set up as a natural extension of this
database.
ry
The Research Conference for 1986 was be!& in Sydney and had a
dual purpose. Part I was & technical stating to review work
aimed at the three important business objectives - Smoke
Quality Improvement, Response to Regulatory Authorities and
Cost Reduction. Part 11 was a review of orgaaisation and
strategy of Group research. A similar format will be followed
in 19B7 .
Specialist seetings/workshops during 1986 covered:-
Flayourist Workshop
Tobacco Processing
Chosioseneory Research
Product Development
Tobacco Biotechnology
and the following are planned for 1987:-
Analytical Research
- Flavour Workshop
Product Development (including filters and sidestress)
Technology Forecasting (including competitive
Intelligence)
Southampton Research Review
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n a 1 1 yseveral collaborative projects involving staf f
exchange have been sot up between the various R&D centres.
,Fly These include a Cbenossumory/Aerosol team (36W, BATCF,
BATUXE), various Initiatives on tobacco particle size control
for better cigarette quality (BkTUKZ, Ville), and a recent
joint-study between B&W and RAMS on extruded reconstituted
tobacco. Staff-interchange In proving to be one of the most
effective means we have for coordinating the R&D centres.
2. Scientific Research Group.
kt the 1985 Research Conference we agreed the need for an
advisory group to review all Smoking & Health related papers,
with a view to recommending external research that the Croup
should sponsor. This would comprise Group senior specialists
and could call on external consultants as necessary. The
concept of International co-ordination In this area is new.
The Group has been not up under Dr. R. E. Thornton and has
held two meetings. The first meeting was largely to agree
terms of reference; the second sooting addressed the subject
of nicotine and concluded that there are four areas which need
to be pursued. Nicotine metabolism. influence of nicotine an
human behaviour, role of nicotine in Parkinson's disease and
Alzheimer's disease and work on nicotine receptor mechanism
will be explored from the standpoint of external contract
research.
'Other Noxa,
The next meeting will consider the key issue of
(minor smoke components of Interest to regulatory bodies).
The &in is to prioritise internal research work on reduction
tc of such components and to agree what external work needs to be
pursued. The role of such compounds in relation to disease
mechanisms will be considered.
3. Group Strategic Research
The integration of Southampton R&D into BATUKE Is now
complete. Projects are for the most part sponsored by SATUKE,
BATCo companies or BATCo itself. There remains a group of
projects which are strictly viewed as Group strategic rather
than of particular Importance to BATUKE or BATC*. It has been
agreed by the Tobacco Strategy Review Team that these
activities (cost 92 an.) will In future' be funded by CAC
countries (excluding Brazil), and that accountability for the
projects to the Research Conference will be given to
Dr. IL. Baker of ZATVKZ R&D. A key project of this fundamental
research programme is the study of smoke formation (both the
6orosol - a potential source of taste modification - and the
individual components, many of which attract the Interest of
regulatory bodies). Other group strategic work undertaken by
SoUthlapton relgteS to eldestreas sooko and its fate under
various ambient conditions, also an area of increasing concern
to regulatory authorities.
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Brazil also has projects which are Group strategic rather than
specif 1cally requested by Souza Cruz. These are in the area
of tobacco processing with a strong thrust towards Improved
subjective snake character through processing modifications,
and in fundamental leaf science .
4. Priorities for Research
Currently, focussing only on those projects carried out in the
six R&D Centre& that have relevance to the Group as a whole,
the allocation of effort against business objectives is:
Smoke quality improvement 48.6%
Cigarette physical properties 8.9%
Control of snake components 8.4%
Cost reduction 7.9%
Social concern 5.1%
Others 15.7Z
The effort on snake quality improvement reflects the general
Group pressure to achieve better smoking products. Z&V have
the highest effort and are making good progress vith their
novel tobacco grades, use of ammonia technology in relation to
reconstituted sheet, and new casings. The use of selective
filters to remove 'harshness' factors is looking interesting.
Both BATCE and Souza Cruz have created novel taste modifiers
which are now in use on commercial brands.
The Research Conference expressed concern that ve ensure
sufficient resource is available for '**ad-corn' Ideas for
these objectives and that. In particular, we give thought to
increasing effort aimed at reducing social concern against
smoking. Ideas at this stage are by no means clear.
Plant biotechnology opens an important area of new opportunity
in relation to basic tobacco properties aud cigarette design.
So far, B&W have taken the lead with tobacco and are
developing, with a biotechnology company, cultivate with high
nicotine/tar. They are also exploring Introduction of key
flavour notes into commercial tobacco. A coordinated Group
approach has now been established with G.A. Read acting as
coordinator. Souza Cruz, through Sloplanta, and Imperial,
through a contact with Agriculture Cauada, will certainly be
involved.
5. Product Development Concepts
The Product Development Steering Group (PDSO), comprising
senior Marketing and Research representatives of SATCo and
BATUXE, Is responsible for Identifying now product concepts
and for pursuing those considered to b&Vg potential importance
for the IATCo companies,, but hopefully, also for the Group.
Under the auspices of this Group a questionnaire has Just been
circulated to SkTCo companies In order to Identify their areas
of interest for the kind of product development that calls for C:)
facilities outside of the range available to then locally. 11-.0
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Uniquely on this occasion examples of product development
projects being pursued In all six R&D contras are Included to
stimulate Ideas. As a scans of protecting confidentiality,
projects are confined to .product' rather than 'brand'
developments. and the Research Co-ordinator will forge
contacts between IATCo companies and the appropriate R&D
contra rather than attempt to distribute extensive project
listings to tbt 20 or so DATCa companies concerned.
6. 14D Technical Support to SATCo Companies
Whilet SAME I&D is the major source of technical support to
ZATC* companies, there are stany examples where other R&D
centree In the Group are already giving technical assistance
to BATCa companies.
(i) SAME R&D
Technical support to IATCo companies by SATUKE R&D In
1966 has been extensive amounting to ooze 252 total
effort. Itemis Include abort-tars product development;
special chemical analyses and routine cross-ch*cks;
product, laboratory and hygiene audits; technology
/0@ transfer seminars and specific process development work.
Additionally, process development projects are carried
out directly for SkTCo, -with TPD as the sponsor.
The following examples illustrate bow the R&D Centre is
adapting Its activities in line with the concept of
practical application implicit in the 1985 restructuring.
r Short term product support work has ranged from advising
Argentina on redesigned cigarette papers to produce cost
savings, to the development of a now triple (carbon)
filter for Venezuela. Elsewhere cost savings have been
achieved by identifying move economic town for filter
manufacture for several Operating Companies, e.g.
Nigeria, Konya, Sudan, Pakistan, Finland. etc.
Vithin BATUXE considerable progress 'has been made by
AA' increasing the level of expanded tobacco (IT) In
full-flavour products. Potential negative effects, in
terms of tar delivery and puff number maintenance, have
beau successfully overcome, without affecting the product
characteristics. through reformulation of the cigarette
paper. Other substantial benefits of this now paper, due
to Increased thickness and strength of the paper, are a
significant reduction in downtime and decreased
utilitation of the tobacco oven at the *&se ET level.
This paper is now In fall-sealst production and le already
being used os two major ZATUZI brands with an expected
saving of 9500,000 over a full year. Bobbins have also
beau sent to the appropriate ZATCo companies for
evaluation, e.g. Malaysia, Singapore.
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BAT Indonesia have commissioned R&D to provide relevant
testing to clarify the acceptability of eogenol In
smoke - This has called for collaborative work to
generate a suitable test cigarette and plans are well
ahead for external assessment of the metabolism of
eugenol delivered In smoke.
C The acquisition by BAT of BASTOS (The Caneroons) has
required major activity in the review of raw materials
and development of a new product. This product - RED
CLUB LEGERE - was successfully launched at the end of
October and has been very positively received by. the
market. In neighbouring Nigeria, a Product and Process
Technology Seminar was run In October for delegates from
the Cameroons, Ghana, Sierra Leone, Liberia, Zaire and
the host country.
BATUXE R&D has completed product audit* of Kenya and
Zaire. These audits comprise (a) a detailed critique of
the Product Development function of the company, and
( an independent evaluation of the smoking (and
physical) properties of the companies' products in
comparison with competition. Both audit@ were well
received by General Managers and Territorial Directors
and have led to tbo implementation of specific
recommendations.
Key analytical projects include detailed analysis of
specific International brands from around the world - ,
Project GLOBE and specific Investigations from Operating
Companies, e.g. odorous emissions - Finland; spotting
problems - Malaysia; and tobacco ageing studios - Canada.
BATUKE R&D have maintained the Inter-laboratory
Cross-Check Test, and Individual croon-checks with
Brazil, Belgium, Cameroons, Mauritius and Panama. The
Centre has also been involved in CORESTA and ISO
croon-check schestes.
Analytical laboratory training has been arranged for
personnel from Hong Kong, Mauritius, Tanzania, Kenya and
Indonesia, and Laboratory Audits have been carried out in
Pakistan and Venezuela. The latter visit was combined
with a hygiene audit and a hygiene iouLuar for
Central/South American countries.
on the process side, a means of stabilising WTS
filling volume was devised for BATIKS and La on trial;
an automated QC method was transferred to Liverpool
and the stem shredding line Installed. Small strips
add-back was quantified In sauple usaufacture 12
major conauuer trial samples were produced. Short
a taus were shredded for seven companies; two are 00
planning use. Moisture meters were calibrated for __4
eight companies. A robust cheap moisture control %@o
system was designed for Sri Lanka's OLT. C=)
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The specification of an APEX pilot plant, Including
use for Wintersans, has been taken to an investment.
decision stage. Malaysian Tobacco Company poor
.,,quality leaf was improved by processing to consumer
trial stage.
(II) Other CAC R&D Centre*
The B&W R&D main area of technical support to BATCo is
In leaf. Training for representatives of five Central
kaerican companies (at North Carolina -State
University) and of agronomists from Mexico has been
organised. There has been collaboration with Spain in
agronomic support and in testing of local tobaccos.
Two violts were made to Malaysia to assist In Product
Development and to review quality of local Burley.
BATCF has worked with a number of BATCo companies In
the potential exploitation of German process
developments, notably the STS stem drying/expansion
process.
Souza Cruz R&D has close connection. with Chile and
have carried out studies for then in several areas -
casing modifications, beetle control, direct menthol
addition to tobacco and development of laboratory
analytical techniques. Both Venezuela and Areentina
have also received technical support from Souza Cruz.
The R&D team at Souza Cruz feel capable of giving
technical assistance to BATCo In many areas so far
e@_J unexplored - specific aspects of leaf technology,
novel flavours and casings and general industrial
technology (effluent treatment).
(III) Future Plans
Apart from the initiative already taken (through the
Questionnaire) of Identifying areas of Product
Development that DATCo companies support, we also now
propose to ask companies to Include In their Company Plan
their technical support project requirements from R&D.
This will enable questions of resource planning and
funding for specific projects to be resolved at an early
stage.
A* L. Heard
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ALR/DET kJ-4
12th December 1986
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