1980 RZ3ZARCR CONTZRZNCZ SXA ISLAND, GA. KIGRLIGITS OrganIzatIon. and 7undIng of Group R&D 1. In supporting Group R&D, CAC compaulas do not look to GIUDC to bring research to commercial, application; that. is the reaponsIbUlty of operating countries. GR&DC work should. however. have commercial applicability or relevance. 2. The nova toward a clearer Ideatif Icatlon of Group I&D within the total actIvIty and expenditure of GX&DC was supported. It was felt. however, that the Conference a should see and be_r.&ncqTj4p4 with the whole activity of Central t just with the Group R&D program. 3. The key responsibility of the Research Conference in recommending to the Tobacco Board the shape of the Group R&D program was confirmed. LI 4. The Rot Springs agreement on sharing tb* cost of the Group /R&D program was that the basis of funding should be the re7ratlve annual turnover of companies, not an arbitrary percentage levy au turnover. 5. The CAC companies are primarily concerned with 'value for money', kAytajL_.Lo just:Lfy their contribution to Group R&D against their own la-house company R&D expenditure. 6. The fact that. au a etrIct cost sharlag basis, non-CAC companies contribute 4OZ of the coo a- work _vA& 2400 was ac.P_@@ht to be inequitable. TheIr needs tend to follow the CAC countries _wItb. a 5-10 year delay. Thus, they currently are in a position to benefit from past Group research&&, a-g-, fIlt,rs. sheet, and product design. Budgets and 7orecasts 7. It Is. wtusW-Ur u1sleadIng to present three year budgets and forecasts only In Inflation terms. The management of R&D can only be exercised In'fIxed money values; otherwise the affect of staff reduction* Wazareasas) or changes In programs and facilities will not be assessable. Communications S. Concern was expressed that @4foruatlou and opinions passed by the Read of R&D to, for /'example, the CAC meetings and the BHA doctors should be copAwalcated to the leads of Research X; f the CAC countries. Mnly La tbLs way, would a balanced discussLon/respo possible and the CAC countries would use know what Inform.,:,. @@was being released. co C= BAT Co LTD MINNESOTA TOBACCO LITIGATION Smoking and Health S. We are concerned with rapidly changing pressures on the Industry, rather than with significant changes In techno1ogy.-.,,JCr_w.-.t@- 9. Medical experts are capable of Incarpreting S&H findings, albeit they may choose not to acknowledge advances made by the cigarette industry. The bulk of the medical practt- tioners, however, are ill-informed on the facts and adopt an anti-s=oking, stance.. 4_2 10. The modiAni".-i-stance now tp--be adopted within SAT, as illustrated /by the forthcoming Ceju@al R&D brochure, was supported, but with uali in V XLL ezazdez 2V Any loosening of atti.tude regarding S&K oriented research and the development of Low delivery products. should if possible be balanced by a more overt approach on the benefits of smoking, parti- cul&rly La psychological terms. 11. The CAC decision an medical ad s was noted, but it was felt that the subject merits r consideration especially in the light of biase on passive smoking and the need to be in a position t nce third party opinion and anderstanding. ve an- 12. ? te j, @ @ onferance :Fs It-- health related work a )we rIg t objectives and priorities. So 'much has been done Idwide, It is vital the program should f it the changing environment. Technical Discussions 13. The conclusion In the Position Paper an nicotine that caution is required in the development of higher aicotime/tar ratios In the low delivery, products, was not accepted. The experiments to date an augmented nicotine levels may not be scientifically valid; the weight -of evidence remain. that if nicotine does have -xicologd-al activity the level is Likely co be much lower than that of ear. Nicotine, moreover, nay wall have beneficial effects on the circulatory system In humane. 14. A better unders andIng in wanted, however, on the role of nicotine in era anding is and cardiovascular response. Studies should also be made of the possible influence of the sources of nicotine and of the "environment" in which It exists in smoke. in particular the relative biological activity of nicotine fro= different delivery level products 7 (@&3r 1,3,10,20) should be established. /% co co C-r. BAT Co LTD MINNESOTA TOBACCO LITIGATION 15. The Position Paper an short-tern bioassays summarized the present state of the art. A critique is now required to show what tests are in use at CR&DC, what gap* if any exist and what the recommendation is for assessing now Products, flavors, additives, etc. 16. More generally, a critique Is required to establish the relevance of the current and proposed future biological program. 17. The relevance of the chance finding on the influence of Irritation on the depth of inhalation of smoke by rats is currently being checked with respect to human smoking. A. 'This. work Is strongly supported 18. There vac flea strong support for the research Into the generation and control of sidestreac ame k e'jq rticular attention should be given to the M.,- Par on sidastr a&= ~DI arc=&. The research into the attitude/responso of smokers and non-smokers to substantial reduction/aliminatton of oldestream smoke to also important. e- le,_ 19. 202 4&ort should be directed to developing -&*- vitb greatly reduced tobacco content co reduce the material available for generation of sidestresm. 20. The research into the source and mechanism of formation of nirrosaminc-i in both a Id *at and mainstream should be porsued with urgency. 21. Research into the selective filtration of gas phase components, s, to a priority area. There In doubt, however, as to the possible commercial use of the So x filter containing C-nltrosobenzine@@ Germany definitely could not conzemplate using it. 22. The finding that Maryland tobacco (and air-cured tobaccos generally) lead to lower retention of smoke should be explored to find ways of developing products for the nuch. larger flue-cured and blended.rarksts. 23. The renewed interest of Hunter and others (cf. 1979 Cold Spring* Harbour Conference) in socke/tar quality was noted. VhIle not requiring major revival of effort at GR&DC, some attention 'should be paid to possible differences in the smoke and tar of very low delivery products. 24. The development of the BEE filter in its present for= should be completed. but there must be a Complete under- standing of such matters &at -effect on gas phase, especially CO applicability to different tobaccos, papiers, machines -performance with low delivery products -swokar behavior -the patent position Even if there is no evidence of a sv)jective advantage of a flat puff profile, the filter could still be Important market value. co co -7. Lil (1ki BAT Co LTD MINNESOTA TOBACCO LITIGATION 25. As soon as the development is complete, however, there should be a return to basics - to research the concept of achieving a flat puff profile 'by novel and patentable filter design. 26. The possible linking with Hercules, and the manufacture of spunfibre products. raises the potential significance of the development. Either way, It is important to establish possible product advantages in terms Of C. g.3 act rag an oxides, nitrossmines, sulfur compounds and taste. r,.% et, 27. The basic combustion program is key to advancing cigarette, design. CO Is of paramount importance, but the further under- standing of the performance of tobaccos additives NO, etc., must be persued. 28. The broad approach of the flavors research program was confirmed, with the qualification that interaction with flavor houses should be limited to obtaining new flavor fractions or compounds for subsequent modification by reaction or formula- ttou for specific tobacco types. More generally, the approach should be to work on natural flavor-precutors or enhancers a S. V" that have a high or specific tobaccos. . .... CNIf, 161@1 29. Some concern was expressed an the possible lack of tram of ar- ability of the findings of the Li experiments to other major growing areas of the y,@d, n A @ I f P be - d 4 * f 4." 1 ty of securing a BAT proprI5'r'4ry position. -=@@ fR-.0 allies -4, '@ -, @- _" 6- g,.- 4--e - 30. We should &I= to establish in cheQl@'&'L'tarms the difference. in flavor characteristic.% between dIf tobacco ISO to attempt to upgrade poo'Lr tobaccos by selective removal ot adverse components. 31. The emphasis of the sensory testing program should move to the new challenges e.g., sidestrealm and absolute product assessment as soon as possible: The DELTA work has achieved its &la. albeit -that it is recognized that there will always be alternative approaches to the subject. ks.--e- be 32. Th-t ae,@d tc- e-&Z-o-m4 objective testing beyond O/WP still remains; perhaps the flavor research will provide useful pointers. 33. The work on expanded flue-cured tobaccos (Project POET) should be completed and reported with urgency. The need for similar head-on comparisons of DIET. G-13 aa4-@@ processing for blended tobaccos should be determined after the findings on flue-cured tobacco* are assessed. GR&DC should state the commercial options of the different expansion processes In both economic and product performance terms. 34. 1Limited bio1Ogica1@-_t&***&9'%f condensate from expanded flue- cured tobacco should be undertaken. If subsequently expanded I cure blended tobacco were tested, it should not relate to a named B&V produc:. 5, @:-,7 CC) CO BAT Co LTD MINNESOTATOBACCOLITIGATION 35. Discussion of G-13 versus DIET reveal -Reynolds does not have official@c@learance under either the ?cod or EnvircumOntaIr laws In any country. -The move toward legislation an flurocarbons in the U.S. continues. -Ama-e@ aims for 5ppm max residue in the product, o4rat It in likely that royalties will In the ev*,4(not 'be payable on DIET; they are,havever, on 0-13. -B&W conclud&s-there to little in it between C-13 and DIET In terms of capital cost, running cost and product perfor- mance. 36. While noting the need for a number of product quality instru- ments, and hence the current program was supported, it was agreed that future work should concentrate an fewer key arftas@ The Strategy I project provides an appropriate definition of priorities. 37. The Instrument R&DC should be addressed to two main objective 1) Produc 2) Maximu vity in terms of both machines and 15. f L a C' - -7. 38. Pending clu of the Ventilation Conference a comprehensive assessment of available options is required: -Materials -Equipment -Product performance -Coats -Etc. Arrf 39. Taken together the CR&DC and Brazil programs on Primary contain elements of what is required by the Group. The GR&DC work should concentrate on fundamental aspects of the affect of temperature, moisture and time on the changes in the chemical and physical properties of tobaccos - to provide the building blocks for the subsequent development, optimization and commercial specification of future plants and modified existing plants- (CR&DC should not be concarued with Instrumenting specific commercial plants.) The Brazil. _t:-. should &In at establishing principles of.potenclal relevance in other plants and other countries. 40. To support this practical research, there is the need to develop predictive models. In particular. the models should cover both chemical (flavor) and physical (cell structure) Aspects. 41. CRSDC should continue to s*4wr4W6*cr Maercial .4evelopuents, e.g., Tamag, RL, AMF to - -c c7c '4ss'- e"Z" BAT Co LTD MINNESOTATOBACCOLITIGATION @V 42. The good performance to date of the Southampton DIXT plant v*s noted. The need now in to evaluate performance under continuous operating conditions 43. The Secondary automation project (Strategy 1) is of central Importance to the Group. The priorities being worked on offer the real possibility, of giving PAT a lead ever competition. 44. Both in the context of Strategy 1, and generally in areas of technology that have commercially sensitive implications, staff must be made aware of the need for security. This ban Implications also for the way, manufacturers are permitted access to factories and research facilities, and also the way staff talk to outside persons. i5%e?._27 45. The value of INTERBAT was confirmed. T rase to be con- sidered are (I) the inclusion of I updates from Southampton (and other research centers?) Mthe facility for blocking access to selected Infor=ation so desired by individual associates. 46. The publication of scientific findings can aid staff satis- faction and help raise the credibility of SAT to medical authorities, consumers, the media, etc. Great care must be exercised, however, for security reasons. A guideline might be (a) obtain patent protacclon (b) then allow sufficient lead time to seek out a commercial advantage. e' -.7- V. -?Z, T_@ BAT Co LTD MINNESOTA TOBACCO LITIGATION 47. The proposed new procedure for the effective communication and filing of patents was accepted - with the qualifications; (1) in the case of Canada the contact should be with the Legal Department (2) the lists of 'technology' countries should be looked at again. 48. The proposed S&H Data Bank should be reviewed with the Marketing Department, ML11bank, to'ensure that it has the right objectives and operating procedure. 49. Likewise, the Millbauk -requests for competition aud 'home samples should be reviewed. 50. Consideration should be given to establishing a regular competition monitoring survey to cover both technical and marketing actions and strategy. 51. Consideration should be given to how beat Associates might assess consumer attitudes to hardness, s4p-ft,' collapse, pressure dro etc. cm BAT Co LTD MINNESOTATOBACCOLITIGATION