WPC  XsGV9!Z(Rp- M6 xA@b04$5XsxEo>;b.< 4A4#/L`vSC0lh+HqG]@qrɰ#W&[ifRʻzFf~ӧ.(:GDJ*4 *"BZ Un\nL϶f3&?e *Gvٹ+,_=ugXr AN\X\r}MkUpRP_z׼[n1q.#)@ lsts%6VP ӂjZQzC[|8@r.K`@ T2ڽo8~]15@x#!U&N %O 0(UUN}^ w@4+: m< 04SU<> HP DeskJet 540 Printer ,,,, 0(9 Z6Times New Roman RegularX($(hH  Z 6Times New Roman Regulart& D[DD#x&:i+003|xU0 .Normal      XX         XX   &Times New Roman NorbertHirschhornBATCoActronunaffordableBevanflavour NTR RJR M.J.HardwickA.L.H.Barcaly eg.CORESTAHarmonisationR.J.R.dissention ISOrecognisedH.F.DymondBoderBATUKE HFDReemstmaGallahers H.F.Dymonddefence A.L. cigs D.G.HarwoodMillbank AGMUNCTAD UICCaldrinFerriman MPs W]eflavourfulrecognise I]tP]romotional N]orMumenBATCOMNH.F.D.Weissmangroujpprogramme   !  _XhXXXUKUS., 8hXXdd8TRS6&A4X3' Letter6&A43'TPBRIEFINGPAPER015"NorbertHirschhorn,MD  BARCLAYCIGARETTES:BATCosATTEMPTTOPULLTHETAROVEREVERYONESEYES.FromtheMinnesotacacheofBATCodocuments.  t 1. PresentationbyCEOBarryBramleytoBATIndustriesinternationaltobaccoconference,BudapestMay1992,titled, TheWorldCigaretteMarketandBAT,BAT700324698753.(Acorporatereport,comparingBAT,andBATsbrands,toothercompanies,notingtheopportunitiesforgrowthinformerSovietUnionandFarEast.SignificantgrowthoflowpricemarketsegmentinUSA,Malaysia,andAustralia.)Notablequotes: Whereveritisagriculturallyfeasible,BATencouragesthedevelopmentof   tobaccogrowingbyindependentfarmersbyprovidingseed,fertilisers,andtechnicalfarmingadvice.BATprovidesadviceandassistancetoover500,000smallfarmersfromwhomitpurchasestobaccoeveryyear.[handcrossedout]: BATsagriculturalexpertiseis p frequentlyusedtoadvantageinjointdevelopmentprojectswithgovernmentsandotheragencies. Withinthiscompetitiveindustrytheissueoftasteandflavourisparamountifwe H aretogainaleadoverourcompetitorsparticularlyinthelowandultralowdeliverysectorsofthemarket.BAThasbeenattheforefrontinresearchingnewprocessesandproductsandasanexampleIwillmentiontwo.TheActronFilterhasbeenthereasonforthesuccessofBarclaywithitsnovelfilterventilationconcept,[handcrossedout:]whichhasa H beneficialeffectonthesensorypropertiesofthesmoke. Theattacksfromtheindustrys 4 opponentsnowfocusonmakingsmokingsociallyunacceptable,theremovaloftheindustrysrighttomarketitsproductsandmakingcigarettesunaffordablebyconsumersasaresultofexcessivetaxation.Itisvitalthatsmokersremainfreetouseourproductsandeveryeffortmustbemadetoensurethatthishappens.Wemustalsofighttoprotectthecompanysrighttomarketitsproductsbypromotingfreedomofchoiceandfreedomofcommercialspeech....Recentlywehavehadsuccessesin[handcrossedout:]persuadinggovernmentstochange l changingexcisesystemsandwehavebeeninstrumentalinsecuringapostponementuntilthe X  endofthedecadeoftheabolitionofinterEECdutyfree.Industryasawholeisnowunderthemicroscopeofenvironmentallyconsciousindividuals,,organisationsandultimately,Governments....thezealousmannerinwhichgreengoalsarepursuedisdefinitelycauseforconcern.#XhXXXh+#US.,UK.,J2.Researchreport,NO.RD.2077,P.C.Bevan,14May1987, Areviewofthefactorsinfluencingnicotine/tarratioinmainstreamsmoke,BAT(Fileno.AQ2910)400493381398.  (Blendandventilationincreasetheratio.Highblendnicotine(includingY1),highventilation,andalsoalkalinepHcangivearatiothreetimesthatofa fullflavourproduct,e.g.Barclays.)Notablequote: Technologically,designofahighNTRproductanywhereinthe110mgtar T,'+ rangeispossibleimmediately.Subjectively,itisnotclearhowNTRshouldvarywithtardeliverytogiveacceptablesmokingcharacteristicsatanygivendeliverylevel. ,.|)-  /h*.  XhXXXh3.Marketanalysis,noauthor,April1982, Conferenceonmarketinglowdeliveryproducts, NWX Xh        55; NW NW; NW NW NW NW  <( ` hp x X<# XhX NW#   BAT(Fileno.G928)102213836-849. NWX Xh c݌  Ќ<( ` hp xX< NW NW NW NW NW NW NW NW        55; NW NW; NW NW NW NW  <( ` hp x X<# XhX NW#     (WhyBarclaysucceeded..An ultra-lowbrandofferingamale-model warmimage;  agood-tastethemeof thepleasureisbackprobablyreflectingquicknicotinedeliverytothethroat;theActronfilter,expandedtobacco,strongall-laminablend,promisingjust1mgtaror 99%tar-free; buy-one-get-one-freelaunch.PhilipMorrisandRJRsued,allegingtheconstructionfooledtheFTCsmokingmachine--atriumphofcompensationbyblockageofventilationholes.) NWX Xh L݌ $ t Ќ<( ` hp xX< NW NW NW NW NW NW NW NW        5 `5; NW NW; NW NW NW NW  <( ` hp x X<   #NW NW ##XhXNW# ݌̌      XhXXXh NWX Xh         NW NW NW NW   :   XhX NW4.Minutesofmarketingmeeting,M.J.Hardwick(researchanddevelopment),2May1985,  L   BarclayPlus,BAT(Fileno.G999)102943790-796.# NWX Xh# :݌  8  Ќ<( ` hp xX< NW NW NW NW        5$ 5 NW NW NW NW  <( ` hp x X< XhX NW     (Discussionofdifferentlegalsmoketestingstandardsindifferentcountries,needto $  increasetarintheBarclaystemmingfromthelitigationbycompetitors,discussionofdesigningacigarettewithfivemgtarwhenventilationholesblockedor1-3whenunblocked.)# NWX Xh# ݌   Ќ<( ` hp xX< NW NW NW NW        5` 5 NW NW NW NW  <( ` hp x X< .!  NW NWXhXNW5.January1989,minutes,A.L.H., NotesonBARCLAYstrategymeeting,BAT(Fileno. `  AA0832)401112645647. .!d"݌̌      XhXXXh NWX Xh  # NW NW"# XhX NW  Acknowledgmentthatthesupposed1mgtarcigarettewassmokedinsuchawayasto 8 beequivalentto5mg.InexchangeforagreeingnottolabelBarclayas1mgwherenotrequired(eg.Switzerland),PhilipMorrisandRJRwoulddroplawsuitinSwitzerland.# NWX Xh=$## NW NW"#NW NWXhXNW6.15September1989,minutes,unsigned, CORESTAsmokestudygroup,BAT(Fileno.  AA0832)401112655662.  AnindustrysupportedEuropeanresearchbodywhererivalfirmscancometomeetandagreeonpolicies.HerehowBATwilllabelBARCLAYstarcontent,andhowothercompanieswilldosoinwhatwillbereportedoutasthe HarmonisationReport.Notablequotes: AspartoftheearlierBARCLAYdiscussionswithP.M.itwasagreedthat d theywouldsupportastatementinthenewmethodsproposingaminimumreportedtarlevelof2mg.Thiswasincludedinthedraft.Twoproblemsoccurred.1.P.M.inJapanwerearguingforalowerlimitof0.5mgtarand0.05mgnicotine.Thiswascausinggreatconcernnotonlyforb&WbutfortherestoftheIndustry....Initially,P.M.wantedtoleavethemattertolocaldiscussionbutweinsistedthatP.M.sticktotheagreementworldwide.ItalsotranspiredthattheirconcernwasfornicotineandtobeabletoadvertiseNEXTaslessthan0.1mgnicotine....SubsequentlyP.M.JapanagreedtopursuenegotiationsinJapaninlinewiththerestoftheIndustry.2...R.J.R.U.S.A.hadaproblemwiththe2mg.TheyhadbeencalledbeforeaCongressionalhearingtojustifytheclaimforNOWandwereconcernedthatapositive[industry]statementthatcigarettesmustnotbelabeledwithtarvaluesbelow2mgwouldprovedetrimentaltotheircase.IfweproceededR.J.R.wouldhavetoobjectofficially.Theymadeitclearthatscientificallytheysupportedthestatementandthattheobjectionwasentirelyalegalconcern.AnobjectionbyR.J.R.mayhavebeenacatalystforothercompaniestofollowandtherewouldhavebeenariskofdissention[sic]resultinginthestandardsfailingtobeadopted.Acompromisewasagreed.Theagreementwastodiscuss2mgintermsoftheminimumlevelthatcanbemeasuredwith ,$(, reliabilityandgivingwiderangeoftoleranceinthemeasurements,asagreedinanindustryISOmeetinginHavana,CubainNovember1989: Wherevaluesarereportedbelow2mg,in .). conformitywithprevailinglawsandregulations,thedatashallbeproducedorconfirmedbyonelaboratoryrecognisedbytheregulatoryauthority.Otherwise,valuesobtainedbelow2mg,usingthismethodshouldbereportedas2mg.  # XhXXXh%## NWX Xh%#NW NWXhXNW7.16December1988,minutes,H.F.Dymond, NotesofameetingheldwithJBBoderof < PhilipMorris,BAT(Fileno.AA0832)401112693698.  ElaboratenegotiationswithPhilipMorristocallofftheirlawsuitagainstBATUKEinSwitzerlandfortheclaimthatBarclayshadonly1mgtarwhentheACTRONfilterdesigncausedcompensationbythesmokerandthecigarettesmokedlikea5mgbrand,makingthemachinereadingadeception.AnagreementonindustrystandardsaheadoftheCORESTA/ISOmeetingswasneededforthegoodofIndustry.Notablequotes: Ingeneral,themanagementofPMhavealowopinionofBATandbelieve   thatBATwilluseanyopportunitytorenegeonitspreviouspositionsandcannotbetrusted....AtthispointHFDtoldBoderthatBATfeltexactlyaboutPMasapparentlyPMfeltaboutBAT `  pages401112699708showthevariouscompanies(RJR,PM,Reemstma,Gallahers,ItalianMonopolyB&W,BATUKE)meetinginGenevatoironoutindustrywidetechnicalaspectsofventilatedfilters,howtheyaretestedandhowsmoked.#NWXXh/## NWNW/#NW NWXhXNW8.18May1988,draftreport,R.E.Thornton,H.F.Dymond, IssuesrelatingtoBarclay, ( BAT(fileno.AA0832)401112734736  Anexplanationthatmarketswerecontractingindevelopedcountries,competitionkeentobringinnovativeproductson,demandforlowerdeliverycigarettesincreasing.NeedforBATtobestrongerinCORESTA,andestablishstrongerrelationshipswithnationalmonopolieswhosevoteatCORESTAcounts.SuggestsallyingwithRJR indefenceofinnovativeproducts.Notablequote: Inthisscenariomanufacturersmaydevelopverycompetitivestrategiesto 8 attacksuccessfulinnovations,especiallyifitisperceivedthattheyhaveanunfairadvantage.#NWXXh4## NWNW4#NW NWXhXNW9.9June1988,memofromA.L.HeardtoBATCEOBramley, ISOTC126meeting, !  Beijing,2729April1988,BAT(Fileno.AA0832)401112738744.  BATtookabeatingatthemeeting,PMhaddelegateslinedupagainsttheBARCLAYproduct.Notablequotes: ThereisnoreasonwhyanyothercompanyshouldsupportBATonthe `&!% channelventilatedcigaretteissue!wehaveallthepatentsandthustheonlyproducts....UnlessourcompetitorscanbelicensedtousetheActronfilterorsomesimilarcommercialinitiativeistaken,wecanexpectnosupportfromanyone.#NWXXhi8## NWNWI8#NW NWXhXNW10.?mid1988,handwrittennote,unsigned,BAT(Fileno.AA0832)401112747. *(&*   Difficulttoreadinplaces,butachronologiclistofideasoftheattemptsofPMandBATtouseISOindustrystandardsfortarandtarmeasurementtotheirownadvantage.Notablequotes: allcigscompensate....PM&othersshouldbeinformed(atseniorlevel) -(- thatunlessattacksonBarclaycease,wewilltakeactiontoinformconsumersthatm/cfigs .). donotprovideaccurateguidetouptakefromallvent.prods.ArmageddonMar88decidednottodoso!awaitChinaISO.  #NWXXhl;## NWNWL;#NW NWXhXNW11#NWXXh>#.XhXNW25October1990,memofromH.F.DymondtoD.G.Harwood(BATCO,Millbank), P  Lowertarlimit,BAT(Fileno.AA0832)401112899900.  NowitisRJRsturntoprotestanyattempttosetaminimumtarreadingabove1mgbecauseofproductsintheUSAandJapan.The2mgcompromiseagreementseemsgone,evenasBATagreedtorepositionBarclayasa5mgcigarette.MemosuggeststhatBATmembercompaniescoulddevelop1mgproducts,i.e.thatwouldnotundercutBATsownBarclay.Notablequote: Withincreasingpressureonpackprintedvaluesthemostimportantissueis    toensuresufficienttolerances. [NB.atableshowingrepeatabilityandreproducibilityof   machinetestingtobewideenoughtopermita2mgminimumtobedeclaredevenforlowertarcigarettes.] #NWXXh>## NWNWu>#NW NWXhXNW12.10June1982,positionpaper,unsigned, BATpositiononvariousallegationsthatcould @  beraisedattheAGM,BAT(Fileno.C98)100443246262.  Eighteenitemsarelistedintheindex:advertisinginthirdworld,warninglabelsdualstandards,dumpingofhightarcigarettesonthirdwordnations,internationalbrandsdualstandards,WHOrecommendations,UNCTADreport,UICCguidelines,reafforestation,aldrin, SpurarticleondeforestationinKenya,animalexperiments,sponsorship,Timesarticle24thMarchbyAnnabelleFerriman,passive/publicsmoking,Argentina(expropriation  duringFalklandsWar),lobbyingandentertainmentofMPs,smokingandpregnancy,Barclay(B&Wstatement).Notablequotes:Advertising BATdulycomplieswiththelawsandregulationsofevery x countryinwhichitoperates....Itisthepolicyofallourcompaniesworldwidethattheiradvertisingfortobaccoproductsbedirectedatadultsandforachievingbrandpreferenceonly. < Warningclauses! Webelievethisisproperlytheresponsibilityofgovernments.... (x Dumping! ...[W]eprovideconsumerswithafullrangeofbrandsofvaryingdeliveries.It  d mustbeappreciatedthatitistheconsumerwhomakesthefinalchoiceandif,asinmanycountries,hesmokesonly2or3cigarettesaday,itisunderstandablethatheprefersamoreflavourfulcigarette. [NB.Thebrandsofferedbyexportormadeatthetimeofthis "(! paperrangedfrom15to20mgtar.]  #" WHOrecommendations(in ControllingtheSmokingEpidemic,1979) !  $ # RecommendationNonsmokingshouldberegardedasnormalsocialbehavior.The % $ recommendationtotallyfailstorecognisethatsmokingisalongestablishedhabitfollowedbyverymanypeople....[I]thasnotscientificallybeenproventhatsmokingcausesdiseasesinhumans....RecommendationThereshouldbeatotalprohibitionofallformsoftobacco h(#' promotion....[P]romotionaltechniquesareintendedtoachievebrandpreferenceand T)$( reinforcebrandloyalty....[N]ordoesitappearthatsuchadvertisingcausespeopletobeginsmoking....RecommendationexportsshouldbediscouragedandtheIndustryprogressively ,+|&* reducedinsize.Implementingthisrecommendationcouldhaveserioussocialandeconomic ,h'+ consequences,particularlyonthosedevelopingcountrieswithfewalternateformsofindustry.󀀀 [NB.Etc.,etc.] 󀀀 -@)- LobbyingandentertainingMPs! Itwouldbeaninsulttosuggestthatanybodycouldbe .0*. P     boughtforthepriceofalunch.BAT,incommonwithmanyothercompaniesandinterests,retaintwoMPsasParliamentaryadvisers.TheyhelptokeepthecompanyintouchwithdevelopmentsintheHouseofCommonsandinthepartypoliticalprocess.   [NB.PagesonpregnancyandBarclayarenotpresentinthisfile.]  t #NWXXhB## NWNWB#NW NWXhXNW13.4January1993,letterfromR.DaviestoDr.H.AlMumen,MinistryofHealth,Kuwait, ( x BATCOMN000664669.  Thisisafullerversionofitem16,BOX1,batcodoc1.ThereasonswhytarlevelsshouldnotbereducedbytheGulfCoordinatingCouncilfrom12to10aregivenhere.Theyincludetheprospectofsmugglingandsmokersturningtootherproductslikehookahs,pipesmoking.Notablequotes: Asyouareawaresmokerscompensatewhenonlylowtarcigarettesare   available.ThispointismadeinthebookletIslamsRulingonSmokingissuedbytheWHOAlexandriaofficein1988. [NB.EventheDevilcancitescripture.] t   14.6February1990,memofromH.F.D.DymondtoA.L.Heard, 2mgminimum,BATCOMN000862863.  SeeBOX2item17batcodoc4.Dymondreviewsthenegotiationstogetallcompaniestoagreetoa2mgtarminimumtoavoidthe tarderbyfiascoofBATbeingsuedbyPhilipMorrisinSwitzerlandoverBARCLAYsclaimto1mgasmeasuredbymachine!butequivalentto5mgwhencompensatedbysmokers.Notablequote: Antismokingbodies,GovernmentHealthDepartmentsandotherregulators  alreadyquestionthevalueoflowtarproductsandthesubjectofcompensationisnowquitewellunderstoodbysuchpeople.Activepromotionof1mgproductsislikelytofurtherincreasetheirattentiononthecompensatoryissue.#NWXXhP## NWNWiP#NW NWXhXNW15.9September1983,letterfromPatrickSheehytoGeorgeWeissman(PhilipMorris,New < York),BAT201080394395.  ThefightbetweenPMandBAToverBATsclaiminEuropethatBarclaycigaretteshad1mgtarbymachinetesting,whentheACTRONgroovedventilationfiltersupportedcompensationtoconsiderablyhigherlevels..Notablequotes: PhilipMorrisHollandB.V.recentlytookoutfullpagenewspaperadsin #" violationofDutchlawtorepublishanantismokinggroupsslanderofBarclay.Upondemand,yourcompanyofferedtoceasethisadvertisingbutdeclinedtopublisharetraction,leavingusnorecourseexceptthroughthecourts.ThecurrentcampaignoftheDutchAntismokinggroujpexpresslydeploresthegrowthofLightcigarettesalesinthatcountryandseekswaysofreversingthetrend.TheyhavesingledoutBarclaymerelybecauseitisthelatestsuccess.Theoverallthrustisagainstallcigarettebrandsincludingthoseofyourgoodcompany.IfinditincomprehensiblethatPhilipMorriswouldweighsoheavilytheshorttermcommercialadvantagefromdeprecatingacompetitorsbrandwhileweighingsolightlythelongtermadverseimpactfromanongoingantismokingprogramme.IbelievethisisthefirsttimeaTobaccoManufacturerhaspurchasedspacetopromulgatetheantismoking _position._ԀIndoingso,PhilipMorrisnotonlymakesamockeryofIndustrycooperationon -8)- smokingandhealthissues,butalsoappearstoinaugurateafreeforallinwhichillegalconductiscondonedprovidedthecommercialstakesarehighenough. #NWXXh W## NWNWV#NW NWXhXNW16.Circa1980s,strategicessayby_C.C._Ԁ_Greig_,"Structuredcreativity P Ѐgroup...marketing>scenario,"BAT(J83)100515899-910.  "Bluesky"visionofthefuturefortheindustry._Greig_Ԁultimatelyarguesforareturntothecigaretteofold,ahightar/hightastecigarette,usingtheconceptof"elasticity"wherebythesmokercaneasilydrawtoahighvalue,theBarclaybeingaprototype.Notablequotes:"Acigaretteasa'drug'administrationsystemforpublicusehasvery_very_  (  significantadvantages:_i_)SpeedWithin10secondsofstartingtosmoke,nicotineisavailableinthebrain....Other'drugs'suchasmarijuana,amphetamines,andalcoholareslowerandmaybemooddependent.ii)LowdosageThedeliveryofnicotinefromthepuffofaUKmiddletar(USfullflavour)isabout0.1mgor100ugoftheactiveagent....[Comparedtoalcohol,aspirin]nicotineisaboutthelowestdose'common'drugavailable.CostTheunitcostofa10minute'high'fromtobaccois,inUKterms,about6pence....Thissumisabout40secondspretaxearningsattheUKaveragewageorabout1minuteaftertax!TheFuture?Thuswehaveanemergingpictureofafast,highlypharmacologicallyeffectiveandcheap'drug',tobacco....However,ithasdrawbacks.Themajoroneisthatithasa'healthshadow'overitwhichisnoteasytodispel.Secondly,itisamessyhabit,pollutingthenon-smokersbreathableatmosphere,andleavingash   anddebris,nottomentionsmells,aroundforhoursordays.Thirdly,carelesslyused,itsetsfiretothings.""Itisamootpointwhetheractualdeliveriestohumanshaveeverreallydroppedacrossthevastmajorityofthesmokingpopulation....[_T]he_Ԁimmediateconclusionisthatpuffvolumeshaverisenasinexorablyasmachinedeliverieshavedeclined....Manypeoplewilltellyouauthoritativelythat,onasoundstatisticalanalysisofwelldesignedexperiments,lowtarsmokersdonotcompensate.Rubbish....Peoplewillwantthe'highest'deliveryforaunitprice...itismoreliabletobea'medium'delivery_compensatable_product."# XhXXXh.^#XhXX Xh#NWXXhN^#