7.
Rationale for R&D
Since Its inception. Central R&D has had the responsibility for
seeking products and processes which Improve the Company's
competitive performance and also for exploring the smoking and
health question. As retards anoking and health, it Is apparent
that after sore than 25 years of studying smoke and of using
various biological models based on animals to reflect biological
activity, no clear answers have emerged from the research
conducted in our own laboratories about the role of tobacco
smoke, If any, In human disease. Consequently, It is considered
appropriate to re-disfine the role of internal R&D, to re-evaluate
the distribution of resources and facilities 'between Internal and
external research and to set a new course for group R&D in the
future.
The now rationale for R&D recognises the two separate targets,
identified above - but sakes such clearer distinction between
their purpose and also between work to be carried out in-house
and that done, norst appropriately, externally. The two &ran of
R&D are thus Product Research ('internal') and Smoking and Health
('external').
PRODUCT RESEARCH
Projects in this field are designed principally to anticipate and
meet:
(1) Consumer demand
(2) Requirements of regulatory authorities.
Because this work is product and market driven, it is soot
appropriately carried out by Internal resources.
(1) Consumer Demand
The principal considerations La setting our internal research
strategy are consumer acceptance and the ability to anticipate
and to respond to consumer demand.
Subjective smoke quality (taste, flavour, &Von&, texture,
harshness and related sensory aspects) play a key role in
determining consumer choice. We seat research the materials we
use in making our products and the constituents of smoke to
determine their organoleptle effects. This will enable so to
develop products which will meet @basging tastes and which will
give a high level of consumer acceptance and a competitive
advantage.
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Increasingly our consumers will seek products which offer novelty
or distinctiveness and this will range from cigarette length,
tipping and packaging variants to radically new products.
Cost considerations are Increasingly Important to the consumer:
correspondingly our Product Research plan should include
technologies In leaf processing and cigarette manufacture to
minisise costs.
Consumers may also respond to criticisms whatever their merits,
levelled against particular elements of our products and we must,
therefore, anticipate and be ready to meet demands for products
which have high or low levels of specific smoke components. In
this area market research will give few pointers: we must try to
give a broad coverage In our research programmes, but, In the
end, give priority based an our reading of the impact which the
scientific and antismoking lobby concerns say have on the market
place.
In addition the social impact of smoking to receiving greater
attention and we aunt develop products which cater for our
customers sensitivities to the social aspects of smoking and
which reduce sidestroas visibility. Irritation, smell etc.
Well-planned R&D will seek to anticipate consuster-demand rather
than await it. In some cases we say even take the decision to
make specific modifications ahead of any external stimulus but in
anticipation of a future need by Introducing Innovations as
sleeper brands.
(2) Requirements of Regulatory Authorities
Although consumer demand may be stimulated by the media raising
issues from unpredictable sources and the company say take a view
on whether there is a scientific or a commercial reason to
respond, Governmental requirements are, by contrast, either
actually or effectively mandatory. Ability to respond to
legislation or Government guidelines an cigarettes to therefore
of highest priority for Product Research. Projects pursuing this
theme will include the search for technology to regulate whole
smoke deliveries, specific smoke components &ad biological
activity (using techniques recoSulsed so having wide
acceptance). Again. we must work closely with those bodies which
influence Governmental decisions in order to ensure that our R&D
programme is constructed-to enable the Company to respond. At
the extreme we must be prepared for any external research that
suggests a specific smoke aodifIcatiou Le desirable or essential
and that is accepted as such and Implemented by the relevant
authorities.
As is the case with any company In any Industry, we must examine
proposed now products, additives or process changes by such co
generally agreed chemical/biological tests as may be thought J
necessary, recogulaing or anticipating legislative or
administrative standards.
BATCo document for Province of British Columbia 23 April 1999

SMOKING AND HEALTH RZSZARCR
Unlike product research, soot smoking and health research Is not
market driven. It nevertheless remains a legitimate area of
enquiry for a responsible company, but It In generally less
appropriate to an internal R&D effort.
The overall purpose of this research is to investigate the
effects of smoking on the smoker. What we will do In-house in to
critically review all scientific papers which claim to associate
smoking, and Individual smoke components, with particular
diseases and health consequences and discuss with regulatory
authorities the association between smoking, individual smoke
components, various diseases and normal health.
So far as the remainder of the programme Is concerned, research
will be carried out ext*rnally by using the facilities of the
leading research groups in universities, medical departments and
institutes, to investigate the various claims made against the
product.
We shall support new lines of research in similar establishments
in areas which we feel are not being adequately researched by
others and which may provide bettor Information about whether or
not there is in fact any relationship between smoking or
individual swoke components and particular health consequences.
A L Heard
29 October 1985
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BATCo document for Province of British Columbia 23 April 1999