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MEMORANDUM TO: Dr. A. W. Spears FROM: A. B. Hudson SUBJECT: Socially Acceptable Cigarette November 8, 1979 We are fast approaching the time when the "tar game" will enter the final act, that is, theoretical zero tar. This means that for Lorillard to stay in the forefront of technological innovation we have to find other avenues to explore. However, it appears to me that a situation ha-s developed which has found us and that is the growing antagonism to the smoker by the non-smoker. Some of my personal experiences bear this_ out. The first experience occurred when I was visiting at the home of a "friend" and lit a cigarette. Without hesitation, this "friend" asked me to go outside to smoke because his wife was allergic to smoke. Lately there seems to have been an exponential-type growth in the number of people who are "allergic" to cigarette smoke. A second personal experience occurred at the latest TCRC. I was having my coffee and cigarette after lunch when the waitress came to refill my cup. She started fanning with her hand and said with obvious annoyance, "that smoke." I have had other similar experiences but these impressed me the most because first it was a "friend" and second, a waitress waiting on a customer in a very nice restaurant. To me, this drives home the point of the degree of an ta- gonism to smoking that exists among non-smokers today. The over-riding danger in this attitude is that smoking could become "socially unacceptable." It has to be remembered- that a similar phenomenon occurred with chewing tobacco many years ago when the "social unacceptability" of this habit was pronounced by the removal of spittoons from public O buildings and later private businesses. w ~ O 1~+ 4

Dr. A. W. Spears - 2 - November 8, 1979 I certainly don't want to appear to have a "chicken - little" syndrome by proclaiming the sky is falling, but it- should be remembered that this potential problem was-gestating and was recognized over three years ago when a proposal was made to develop a socially acceptable product. Based on a study by de Garmo (study attached), the gestation period appears to be over and a serious, growing problem exists. The data generated by this study was only reenforced by a recent study conducted by the Roper Organi- zation for the Tobacco Institute. The bottom line of this study was stated in an article (attached) in the Wall Street Journal. The quote, referring to the fears of non-smokers, states that the findings of the study "represents the most dangerous development to the viability of the tobacco industry that has yet occurred." Since the-attached report by de Garmo, which was based on the findings of six focus group studies, details the social pressures that are being felt by the smoker, there is no need to elaborate in this text except to cite a few phrases, such as "a significant development has emerged - the disapproval of smoking" and "structured overt anti- smoking pressures" and "there are indications that smokers are increasingly sharing the non-smokers' perception of smoking as a negative, irritating habit" and finally "the most prevalent reaction on the part of the smoker - he is more self-conscious about smoking." Looking at the situation from a positive point of view and one which can be capitalized on, it presents the classic marketing situation for the introduction of a new product, - that is, "find a consumer need and fill it." It is felt that the best "first step"- product would be one with a significant and obvious reduction in the sidestream which seems to be one of the non-smokers' main complaints. This would give the smoker a feeling of being less offensive and an obvious "conversation piece." The ultimate; of course, would be to develop a product with no visible sidestream-and a pleasant room aroma which would elicit compliments from the non-smoker and, thereby, give the smoker a psychological boost and a feeling of comfort about smoking. - We have made samples with electrostatically perforated magnesium oxide cigarette paper treated with 3% sodium acetate and found the samples to have a significant reduction in visible sidestream. The CPM, CO and HCN values are ~ essentially comparable to the control and no major taste ~O negatives were detected. ~ N 0 H+ CD

Dr. A. W. Spears - 3 - November 8, 1979 1% The major problem with the paper is that is has bad ashing characteristics, that is, there is-excessive flaking which Ecusta thinks can be improved. However, they cannot make this paper on pilot plant equipment which means it requires a mill run. They do not want to incur this expense unless there is a great deal of interest by a manufacturer. It is my opinion that this interest will have to be firmly stated by Lorillard before we can expect to get the needed paper samples in a reasonable time frame for development and evaluation. In summation, it may be that we are entering a new era, an era in-which the primary negative as perceived by the smoker is not health related but rather social related and it behooves Lorillard to meet this consumer need. It is an opportunity to take the first step in reversing the defensive posture that has prevailed in this industry for so many years by developing a new product with an advertisable positive attribute and thus support the smoker and his desire to smoke without being continually ostracized. Lorillard should be the leader in providing this product and thereby maintain its image as the innovative leader of the industry. Xc: Dr. F. J. Schultz Mr. C. L. Tucker Attachments . B. Hudson /gc