622 



is required by the Bureau of Alcohol, Tobacco, and Firearms in 

 miniscule quantities. 



Mr. Waxman. So you say it's not a flavor because it wasn't 

 added? 



Mr. James Johnston. That was a document, as I recall, that ad- 

 dresses flavors and aromas. 



Mr. Waxman. So you submit then that it is not listed as a flavor 

 in your company's document, because it's a natural ingredient in 

 the tobacco? 



Mr. James Johnston. I would have to look at that document, un- 

 derstand what it's purpose and intent is. I'm trying to give you a 

 generalized answer to a publication 22 years old. 



Mr. Waxman. Well, we're going to move on. We'll get back to 

 some of these issues. Mr. Bliley? 



Mr. Bliley. Mr. Campbell, allegations have been made that the 

 cigarette industry adds or controls nicotine to hook smokers. But 

 it seems inconsistent with a number of facts, including Philip Mor- 

 ris' development of a virtually nicotine-free cigarette. Did Philip 

 Morris spend about $200 million in the late 1980's building a plant 

 capable of producing denicotinized tobacco in commercial quan- 

 tities? 



Mr. Campbell. On expenses and in promoting and trying to sell 

 the product, yes, sir. 



Mr. Bliley. It Philip Morris a long time to develop a denico- 

 tinized cigarette, isn't that because the technology for selectively 

 removing nicotine from tobacco was unavailable until recently? 



Mr. Campbell. It was very unusual technology. When we ac- 

 quired the Maxwell House Company, we saw their decaffeination 

 process over in Europe. And it's a very selective type of process, 

 and we were able to take out the nicotine without taking out a lot 

 of other things, so we applied that technology, yes, sir. 



Mr. Bliley. Am I correct that between 1986 and 1989 Philip 

 Morris research and development team, working with a marketing 

 team, tested different blends using denicotinized tobacco in an at- 

 tempt to produce a cigarette with all the other desirable properties 

 of cigarettes, but no nicotine? 



Mr. Campbell. Innumerable man hours, sir. That work actually 

 still continues today. 



Mr. Bliley. My understanding is that Philip Morris denicotized 

 cigarettes failed in marketplace because consumers didn't like the 

 way they tasted, is that correct? 



Mr. Campbell. That's exactly correct. People found them a little 

 bit lacking in taste and flavor. And the other word they used was 

 "flat," which relates to, I guess, mouth impact. Nicotine seems to 

 have an impact that's like carbonation in a soda. 



Mr. Bliley. Mr. Johnston, didn't you have a similar experience 

 with your so-called, well, your tobacco-free cigarette. Premier? 



Mr. James Johnston. We were not able to provide the level of 

 taste that smokers expected. We continue to do a lot of 



Mr. Bliley. I know my wife is a smoker. I took a pack of your 

 cigarettes, those, home and she took three puffs, put it down never 

 to pick it up again. She said it tasted terrible. 



