?Romc? nmuTion 74 RJR is= h of Premier may open doers to furtbGr metment-lon e of.he U.S. cigarette n&rkAt. Performance of Premier to date has r Ve tocular and couammor reaction to the product's than 1 e c n en : , at vervh Wally negative. Nevertheless, Premier may be ,: o I: but the it rat of a new sagment of breakthrough product technology, RAW, in conjunction with the otbAr UT laboratories, in performing preliminary research in product sltsrnLtiv*s to be competitive in this segment. The goal is to provide Sood tests And smoke quality while adfte4slu key rowmar and social concern@. Several fcadamental experisoutx are underway in Louisville, Southamptou, w3d Itamburs which will help focus technical alternatives. And, material research to support concentric product design* has been initiated. The next major ailostone review of the -41RDUS project will occur during the ?trot Quarter. 2. MMTIPLZ-NINIS (PROJECT PIUSUS) Two current trends in the U.S. market are growth in value products and Increased smoking restrictions. This concept is to provide the consumer with a product to moot these pressures. A shorter ciaoretts (*a 63-67m) of reduced eirc.=ferencs (22mm) looks promising for this concept. Those short cigarettes with a more balanced look and feel (since slimar) could be offered as a value proposition CthrouSh. either packet cost or number of sticks r packet). The cousmor could then enjoy a quick or short smoke P a; conventional smoke quality witbwut fasting cheated as he dove .ban satinguishing a conventional size product in given restrictive circumstances. Initial prototypes are currently being manufactured for cousumer concept testing in the &stond quarter a9 1939. reduced sideatream papers may be Incorporated to Lcng*r tormt enhance this proposition. c0 1 ~0 00 C-- BATCo document for Province of BritiSh Columbia 1 November 1999 ZC:80 Ga/G2/10 PIE HD31 M J.01 F, d a Wo"M 3. Plaiscr Big W mck~rs Of full flavor, IkOmstithOl Cigarettes remain a target group for A&W's work In developing &%Meriot smoking quality. To enhance the i344ACY for those mookars, our best nonmenthol recipes r vouLd be utilized in a larger aircumference cigarette. When equipment is available, ve will produce first prototype& in the range of 27-a9mm circumforance. And, vhau acceptable smoks quality Is obtainedp suples and concepts vill be tasted in consumer panels Later in 19$9. A. LOW TAX/R02MAL HICOTINK The concept in to dovolop new products which deliver lower tar while maintaining nicotine doliv4riss. Two concepts ars being ~orksd on, a Lights to appeal to full flavor smokers, and an ultra to appeal to lI&hta smakars. The consumer 'benefit of this concept in to provide equai/b4ttar smaking satisfaction and P. pleasure vh1la allowing the Conamer to Mate down in tar. A genetically engineered flue-curad tobacco (7-1) has been develop4d with substantially higher nicotine Levels and good taste. This leaf forms the technical basis for the davviopment. Product development In underway and initial consumer product testing in scheduled for late 1939. KasrNhIls, over 400s000 lbo of tobacco are being &town at the present time to support future needs. S. LOW/No RICOTISI Croving tranAs in U.S. consumer goods include lowine &Lc*h*l beer, decal'tainated coffee and soft drinks, and a range of sugar-fro* or salt-free items. An4j with current adverse publicity regarding nicotine in cigarettes, there may be a niche vArItt for a low nicotine or a nicotine-free aigsrstts. Samples of tobacco veto provided and have had the nicotine extrae,ted with carbon dioxide by DATCP. Those samples will be blended to make prototype recipes. Significant product development challenges are to enhance flavor, impact, body, and satisfaction in the low/tic nicocias smoks. The next round of prototypes vill be made In let and 2nd quartarep 1999. There Is also substantial evidence that Philip Harris has boon developing a supercritical, CO, extraction process for similar goals. lumors of PH product launch&* in this area have been noted. CD Co BATCo document for Province of British Columbia 1 November 1999