DATE 12 dCT1979
                                                                                           SEEN' ) *,L;
                                                                                           Lp ST!lIY


                                                                                                       A. L
                                                                                                       r- m-,
                           MILLBANK     PRODUCT      DEVELOPMENT      COMMITTEE

            Minutes of Meeting  held              on Monday,       lst Octob*er     1979
            G.R. & D.C. Southampton.

                           Present:      Messrs.       P. Sbeeby                   (Cbairman)
                                                       R.J. Pritchard
                                                       P.L. Short
                                                       L.C.F.  Blackman
                                                       F. Haslam
                                                       W.B. Fordyce               (secretary)

                           Part-time:                  M..Oldman

            Matters    Arisina

            (a)        Product        DeveloDment      Seminars                                               ACTICN

                       Dr . For dyce reported  that the London Heathrow
                       seminar for Marketing     Managers   and Directors
                       from the European    Companies   had taken place as
                       @lanned,   while a further seminar for countri es
                       from the Asian sub-continent      would take,place
                       in Sri Lanka in the week beginning       lst October.

                      At the Chairman's    suggestion, it was agreed
                      that a one-day   seminar for Directors   would take
                      place on some date to be agreed     (around mid
                      December),@ and that ibis should essentially    be
                      an up-dating   exercise in the Product Development
                      area.   A programme will shortly be put forward to
                      the Chairman   for his consideration.                                                   F.H.

            (b)       Proiect         "tiEUTENANT"

                      It was reported    that agreement   has now been
                      reached bet:ween Marketing    Department,   the IBU'S,
                      Product Development    and BWIT.    Further monitoring
                      will be on a six-montbly basis as previously
                      suggested,   and it is expected    that costs should
                      fall more or less equally between Louisville       and
                      Southampton,   with further economies     arising from
                      the reduced   test frequency.

            (c)       One-i)iece        Pack
                      Mr. Pritchard   reported that the R. & D. blank                                            C:)
                      design is not in fact clear of the Molins Patent,                                          c::i
                      but Molins have, however,    agreed to drop their                                          C)
                      demand for Royalty payments.      It is now intended,                                      @-I
                      therefore,  to use the B.A.T. blank design, whilst                                         r\3
                      paying L2000 per machine to Molins for the
                      appropriate  machinery  modifications.

                     for      ofBritish
        BATCO document Province             9
                                     Columbia November1999

BATCO                                                                                                                00093051

                The choice of a suitable market has still to be
                made by B.A.T. (U.K. & E.), since it is currently
                felt that both the Canary  Islands and the Channel
                Islands may not be sufficiently   large in volume
                terms.                                                          P.L.S.


                Dr. Oldman described     the current    state of development
                of the Delta Panel technique,       whose use has so far
                been restricted    to the assessment     of low-tar cigar-
                ettes.    Though not yet ready for "export" to
                Associated   Companies   throughout   the Group, major
                Companies   are aware of the progress      to date, and
                it is anticipated    that the technique      should be
                ready for disclosure    to Associated     Companies by
                the end of the year.                                           L.C.F.B.

                Other applications  for the technique   were
                suggested, including the examination    of full-
                flavour pfoducts,  MOORGATE brands,   and competitive
                products in both these categories.

                Dr. Oldman went on to discuss      other behavioural
                studies currently   under way in Southampton,     and
                these will be reported    by G. R. -& D.C. in due
                course.   Further,  it was agreed that M.P.D.C.
                should be updated on the progress       of these studies
                at some appropriate   time in the future.


               BROLAM-HEADLAMP      (Short and long-term   testing in
               U.S.A. of BROLAM,     with-and without  Duolite, versus
               MARLBORO.    Project   leader: . W.B. Fordyce) .

               Although   the construction    of MARLBORO   in the States
               is not necessarily    completely   stable, our latest
               information suggests that it is sufficiently so for
               the proposed   consumer- test to proceed     early in 1980.
               The necessary   tobaccos   and filters   for both pro-
               ducts have already    been ordered    by Southampton,   and
               manufacture   will take place before the end of the
               year.    While two versions    of BROLAM with respect-
               ively 10% and 20X ventilation      have been designed,
               information   from B. & W. suggests     that MARLBORO
               has stabilised at 9/10% ventilation        for the time
               being (although Philip Morris appear to be using
               a number of different     forms of ventilation to
               achieve this end-result) . No problems are
               currently anticipated    either in manufacture, masking,
               or consumer   testing, but contact will be maintained
               with R. & D. Louisville    over the next three months.          W.B.P.
               TIMER-VIRTUE   (Short     and long-term   testing of TIMER               c::5
               V. MERIT in the U.S.       Project  leader: *,W.B. Fordyce) .            C:)

               Consumer testing   of TIMER versus MERIT will begin on
               4tb October, 1979, and it is anticipated that it
               will take 5-6 weeks.     Analysis   of the data should,                  GN
               therefore,  be available    in early December.

    BATCO documentfor       ofBritish
                     Province      Columbia9 November 1999

BATCO                                                                               00093052

                           INK JET   PRINTING   (Masking   of cigarettes.   Project
                           leader:    D. Conway).

                           Cambridge  Consultants   Limited   have now proposed
                           further development    of this technique,     capable of
                           over-printing   cigarettes   at a speed of 100 per
                           minute.   While it is'recognised      that Marketing
                           are not yet too favourably      disposed.towards    the
                           form of over-printing    achieved hitherto,      it was
                           agreed that establishing     a practicable    operating
                           speed should have priority      over improvements
                           in the colourants    available.

                           VIGOR   (Virginia cigarette     to meet target GORI
                           ratings.   Project leader:      M.B.P. Sheridan)..

                           Five products   have been designed    and compared
                           together  with UK SILK CUT KS, using the Delta
                           Panel technique.     One product   (M140) was found
                           to be reasonably    acceptable,  while a second of U.S.
                           character   (M80) was also felt ' to be a possible
                           candidate  for further development.      It was notic6d
                           that M140 sprayed with pure ethanol-found       higher
                           acceptability   in the panel assessment.

                           Further flavour research  is in progress     to improve
                           the acceptability of these samples.

                           GUARANTEE   *(Cigarettes designed   not to exce6d a
                           stated delivery   and to make smoker compensation
                           impossible.    Project leader:   -D.E. Creighton).

                           Considerable  discussion   took place on whether the
                           "guarantee"  should correspond    to smoking-machine
                           figures obtained under prevailing     smoking protocols.
                           it was expected   that such a development    would pose
                           considerable  technical difficulties,    and it'was
                           agreed that stage 1 of the development      should be the
                           design of cigarette s of low to middle delivery
                           which would negate ' all attempts   by the smoker to
                           achieve any form of compensation.      Tentative
                           designs have already been suggested     within the
                           P.D.G., but'tbere   is no significant   progress to
                           report at this stage.

                           GEMINI    (5 mg products  of 10 mg character.
                           Project   leader:   A.G. Stephenson).  -

                           Experimental   flue-cured   cigarettes  have been
                           manufacutred   and sumbitted    for analysis.   HAUNI-
                           type pe'rforations will be applied on selected
                           variants.    in addition, a programme     for the
                           expansion   of various  blend components    has been
                           initiated, with the dual objectives of increasing
                           burn-rate   and lowering densities,    in order to              C=)
                           achieve higher taste per puff.                                  C=>

                           PROJECT BATON    (100% R.T.S. cigarettes  with 1-2%
                           mg tar delivery.    Project leader:   G.O. Brooks).


        BATCO   document    for Province of BritishColumbia 9 November        1999

BATCO                                                                                    00093053

                           Six different materials have now been manufac-
                           tured into 100% R.T.S. cigarettes and are
                           currently under-going analysis., The cigarettes
                           have been smoked subjectively by' the-P.D.G., and
                           on present indications the products made from P.J.S.
                            (Normal Stem) ex B. & W., have been found much the
                           most acceptable.     Further-developments   await the
                           outcome of delivery measurements.       In the mean
                           time, the ac,ceptability of the more promising
                           samples will be explored using Delta against such
                           low delivery products as CARLTON (U.S.) and
                           MEDALLION   (Canada).

                           SAMPLE   MANUFACTURE   (Project   leader:-   P. Kangis).

                           Replies to the original P.D.G. enquiry have now
                           been received from the following companies:

                           Wills (Australia)
                           B.A.T. Benelux (Belgium)
                           Suomen Tupakka (Finland)
                           B.A.T. Cigaretten-Fabriken   (Germany)
                           M.T.C. (Malaysia)
                           B.A.T. (Suisse) (Switzerland)
                           B.A.T. (U.K. & E.)    (U.K.)
                           Brown & Williamson  (U.S.A*.)

                           Considerable diversity in practice was found to
                           exist amongst all companies replying, and P.D.G.
                           were asked to ensure that Group guidelines would            F.H.
                           be available by January Ist, 1980.                          P.K.

                           WADER   (Measurement of nitric oxide and hydrogen
                           cyanide deliveries of significant brands world-
                           wide.  Project leader;   D.E. Conway).

                           This.project is now effectively terminated, and
                           attention-vill now turn within G.R.*& D.C. to the
                           leaf precursors of the compounds in question,
                           together with research work on possible methods of
                           control.  Information obtained in the course of
                           the project will be circulated to appropriate
                           companies within the group.                                 L.C.F.B.

                           BROADBAR   (Re-examination of MOORGATE brands since
                           acquisition.   Project leader: G.R. & D.C.) .

                           Work is now underway in Southampton on this exam-
                           ination, paying particular attention to changes                     C:)
                           which have taken place in R.T.S. and in filter                      C=)
                           specifications.   Tbe importance of maintaining                     CD
                           the original character of the brands in question
                           was emphasised, and the Product Development Advisors
                           were asked to keep in close touch with progress in          F. S.
                           G.R.'& D.C.                                                 W. B.

                           At the same time, Dr. Haslam was asked to prepare
                           a memo for Mr. Sheehy by 5th October, covering all
                           matters in which B.W.I.T. and Central Product
                           Development have a mutual interest.

        BATCO   document     for Province   of British Columbia   9 November    1999

BATCO                                                                                    00093054
                                                                                              ' ACTION

                   LASER PERFORATED      CIGARETTES         (Project     leader:
                   A.G. Stephenson).

                   Sample cigarettes     perforated   by the HAUNI system
                   have been compared     with cigarettes   ventilated  to
                   the same degree using the Hauni Needle device.          All
                   perforations   were positioned     13 mm from the mouth
                   end, and while the expected delivery reductions
                   were obtained   by both ventilation     systems, no
                   particular   differences    were noted in the levels
                   of the various    smoke constituents    determined.
                   Similarly,   subjective    assessments  by the G.R.
                   & D.C. smoke panel      (not Delta) showed slight but
                   probably not ,§ignificant differences      in*impact
                   or irritation.     No adverse comments were made on
                   the taste of the cigarettes.

                   A further supply of SEFK 555 cigarettes,  perforated
                   to the same level by both HAUNI systems, are being
                   examined for puff-by-puff delivery characteristics.

                   BRAND X/Y  .(Low delivery  cigarette,               Latin    America.
                   Project leader:   Dr. Haslam).

                   Work is proceeding  according   to plan, and the second
                   series of s.amples is currently   being manufactured.

                   TOTA-T, PRODUCT   DESIGN      (Project     leader:      Dr.     Haslam).

                   As agreed at the last meeting   of M.P.D.C.,  the
                   further dissemination   of this technique is now in..
                   the hands of the Product Development    Group   -
                    (possibly through the medium of Product Knowledge
                   Seminars), and of individual'Territorial    Teams.
                   It will, therefore,   cease to feature on the M.P.D.C.

                    MORC-AN PACK   (Focke and Pfhul,  one piece                pack under
                   .examination'by   Packaging Group.   Project                leader:
                    Dr. Haslam).

                   Although*the   pack was well received    in consumer
                   tests in Switzerland,     it was agreed tbat-the price
                    (54p per mille) was much too high to merit further
                   consideration.     The Marketing  Committee  will be
                   advised of this conclusion.                                                F.H.

             3     INTF-RNATIONAL    BRAND    DELIVERIES

                   Mr. Short reported   that target deliveries  have now
                   been agreed in collaboration   with U.K. & E., with
                   firm figures planned up to 1991.     In addition, tent-
                   ative programmes   for further reductions  have beeoh
                   agreed to cover the years up to 1984/5.
                   The "note previously   circulated  by Dr. Fordyce was                              Ln
                   discussed,   and the P.D.G. in collaboration    with                               r%.)
                   Production   and Marketing   will now ensure that

        BATCO documentfor       o      Columbia November1999
                         ProvincefBritish      9

BATCO                                                                                                00093055

             appropriate steps are taken throughout  the group
             to ensure that all companies  conform to the highest
             standards of physical Quality  Control.                             F.H.

            In particular, the Chairman  asked that Associated
            Companies be reminded  of the importance of main-
            taining strict surveillance  over the coal retention
            of all group brands.                                                 P.D.G.

        5   OIL-WATER      PARTITION

            -Dr. Blackman reported that R. & D. am-p- continuing
             to look for more economic   approaches   to this
             technique, with a view to giving it more wide-
             spread application around, the group.     'It is now
             established as an R. & D. project, and will not
             concern M.P.D.C. unless   special  circumstances
             require that it*be brought    back to the agenda.                   L.C.F.B.


            G.R. & D.C. have added both DAP and urea to the
            sheet and casing components  of the TIMER blend.
            Its effect on other products  such as GEMINI will
            be studied in due course.                                            L.C.F.B.

            P.D.G. will maintain contact with R. & D. work,
            and consideration  will be given to how best to
            test the effects of DAP on consumer preference
             (following initial work using.the most appro-
            priate panel assessment) . A plan covering   the
            proposed programme will be circulated  either
            with these minutes or shortly after their distri-
            bution.                                                              W.B.F.

        7   NITROSAMINES

            Two aspects of this         group of compounds     are   currently
            under consideration         in Southampton.

            (a)          Nitrosamines ex tobacco      versus   those
                         from other sources

                         Work is in progress    using the Borgwaldt
                         device which - employs  radio-active
                         nitrogen.   No results are available
                         at the moment.

            (b)          Cultural practice    and   tobacco

                         Leaf from Venezuela   and Maryland
                         may'be particularly   likely to show
                         high hitrosamine   levels in the smoke,
                         probably  because  of the high nitrate
                         level of these two crops.     It is,
                         therefor'e, possible  that changes   in                    01%
                         cultural practice,   most particularly                     \0

       document Province
   BATCO     for     of    Columbia
                       British          1999

BATCO                                                                               00093056

                          in the types of nitrogen fertilisers
                          used, could beneficially affect nitros-
                          amine levels. This is under study in
                          Leaf Department.                             R.J.P.

               Little evidence is available so far on the ranking
               of commercial brands for tobacco-specific nitrosa-
               mines, but a comparison with competition brands in
               Switzerland tends to indicate tbat-B.A.T. brands
               may not compare favourably with those'of Philip
               Morris. Further, measurements of ambient nitrosa-
               mine levels (analytically very different) tend to
               suggest that cigarette smoke may-be as significant
               a source as those deriving from other sources such
               as cooking of some meats.

               Other avenues under consideration in the Leaf
               Steering Committee include variety selection and
               curing practice. It is also possible that all
               aspects of processing from R.D.P. through to the
               end of the primary processing stage could affect
               final levels found in smoke. For the moment, the
               elimination or reduction of nitrate levels in leaf,
               either by stem-leaching or micro-biological de'gra-
               dation appear to be the most promising directions
               to pursue.

               At Mr. Sheehy's request, work in any promising
               avenue should proceed with all speed, with a 50%
               reduction in smoke nitrosamine levels as a first
               target.                                                 L.C.F.E.

         8     R.   & D./MARKETING   INTERFACE

               It is anticipated that a closer working relation-
               ship between R.'& D. and Marketing will'begin to show
               considerable benefits, notably in the areas of
               smoking behaviour, and of the quality of infor-
               mation supplied to Marketing Advisors.

         9     COMPENSATION

               G.R. & D.C. have two studies in progress. The first
               concerns differences between the behaviour of middle-
               and low-tar habitual smokers, wbilst the second is
               basically an examination amongst small groups of
               potential switchers. Evidence to date suggests that
               such smokers may well compensate by as much as 40%        C:D
               of their accustomed delivery. However,- it was noted      C:)
               that the "nicotine hypothesis" is being challenged
               in some quarters, although no other valid theory
               has yet been suggested.

               At Dr. Blackman's suggestion it was agreed that Dr.
               Thornton should make a presentation to the Committee
               at its' next meeting.

   BATCO documentfor       o      Columbia November1999
                    ProvincefBritish     9

BATCO                                                                    00093057

                 10       COCOA        SUBSTITUTES

                          Dr. Baslam  reported  that LORRILARD   and AMERICAN
                          BRANDS do not now appear-to    be using cocoa, although
                          they might well be using some form of cocoa substi-
                          tute, and be reminded the meeting,tbat     there* is still
                          no U.K. clearance for the addition of cocoa to
                          cigarettes.    It was agreed that a B.A.T. brand
                          enjoying significant   sales, and using cocoa in the
                          casing, should be used as a test v,ebicle for the
                          examination  of whatever  cocoa substitutes    are
                          available to us at present.                                               P.D.G.

                          The P.D.G. will also establish                B. & W.'s    latest
                          thinking in this area.

                 11       BURLEY        BFAT-TREATMENT

                           Dr. Blackman  outlined R. & D.Is approach to a study
                           of the important parameters  in this stage of
                          -processing.   The urgency of the matter was emphasised
                           and G.R. & D.C. will make a report to M.P.D.C.   in
                           six months'  time.

                 12       EXPANDED        TOBACCOS

                          Tobaccos from Viceroy Rich Lights and B. & H. are
                          in the process    of being expanded  by both Gi3 and.
                          the * DIET process,  and the outcome will be reported
                          in due course.                                                            L.C.F.B

                          The construction   of the DIET plant in the South-
                          ampton compound   i3s proceeding  satisfactorily   and is
                          expected to be completed     by January  1980.   The
                          anticipated   cost is El.2 million, and a re-
                          evaluation  of those countries    where the process can
                          be profitably   installed is in progress.                                 R.J.P.

                          At present, it appears that the installation of
                          DIET in Malaysia,  Germany, Singapore, Denmark,
                          Canada and the U.K. may be viable, and it appears
                          that ten plants in total may be required.

                          G.R. & D.C. Production    Services are pursuing a
                          value engineering   approach to tbe*current   plant
                          design and are currently    in contact with B.O.C.
                          and D.C.L.   The topic will remain on the'Committee's
                          agenda for-the time being but witb.empbasis     on the
                          Product Development   trends foreseen  by G.R."& D.C.                     L.C.P.B
                          and P.D.G.

                13        DATE    OF    NEXT   MEETING

                          Thursday,    6th      December   at   10.00   am at G.R.    & D.C.,   -     C:)
                          Southampton.                                                                C:)


        BATCO   document for Province of BritishColumbia 9 November                      1999

BATCO                                                                                                 00093058

              P. Sheehy,     Esq.
              C.H. Stewart Lockhart,           Esq.
              E.A.A. Bruell,        Esq.
              I.B.D. Bluett, Esq.
              D.S.   Dunbar,     Esq.
              B.P. Garraway,        Esq.
              N.W.   Goddard,     Esq.
              M.W.   Marjoram,      Esq.
              R.J. Pritchard,        Esq.
              P.L. Wright,       Esq.

              R. A. Crichton,       Esq.
              R.F. Gilderdale,          Esq.
              M.R.   Noakes,     Esq.
              T.J. Tice, Esq.
              B.G. VerRerk,       Esq.
              P.J.N. Roberts,        Esq.
              P.L. Short, Esq.
              Dr. F. Haslam
              Dr. W.B. Fordyce
              Dr. L.C.F. Blackman/
              R.D. Lowe,     Esq.
              D.E. Conway,       Esq.
              C.B. Dodwell,      Esq.
              P. Kangis,     Esq--.
              G.O. Brooks,      Esq.

              Mr. C.I. McCarty
              Mr. L.E. Ricard
              Dr. H, Stutzer
              Mr. H. widdup
              Mr. X.M.   Sumner


    BATCO   document for Province of BritishColumbia 9 November 1999

BATCO                                                                  00093059

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