731 



2.3 million people engaged in this industry. We hear about addic- 

 tion and the threats. 



If cigarettes are too dangerous to be sold and they are addictive, 

 then ban them. But let me tell you what the consequence of ban- 

 ning them is. Some people will quit. Some people, no matter what, 

 will obey the law. Many will not. Many will not. 



And people will get their cigarettes from people selling them out 

 of the trunks of cars, made who knows where, of who knows what, 

 and sold to my kids and yours and everybody else's, because crimi- 

 nals don't care who they sell to. 



My colleagues and I, the 10,000 people in Reynolds Tobacco, we 

 will go find other jobs somewhere where we cannot be accused of 

 all these things. 



Mr. Bliley. Mr. Johnston, I want to be absolutely certain of this, 

 because there has been a lot of interest in this subject and at least 

 one of your competitors has sued ABC over it. Once and for all, 

 does your company spike its cigarettes with nicotine? 



Mr. James Johnston. No, Mr. Congressman. We do not spike 

 our products with nicotine. 



Mr. Bliley. Mr. Campbell? 



Mr. Campbell. Mr. Bliley, we do not spike our cigarettes and we 

 have sued the ABC Company for its accusing us of doing so. 



Mr. Bliley. Mr. Tisch? Mr. Taddeo, you don't have cigarettes. 



Mr. TiSCH. No, sir. We do not spike our cigarettes with nicotine. 



Mr. Bliley. Mr. Horrigan? 



Mr. Horrigan. At Liggett, we do not spike our cigarettes with 

 nicotine. 



Mr. Bliley. Mr. Sandefur? 



Mr. Sandefur. We do not add nicotine to our cigarettes, no, sir. 



Mr. Bliley. Mr. Johnston? 



Mr. Donald Johnston. We do not spike our cigarettes at all. 



Mr. Bliley. Thank you. Thank you, Mr. Chairman, for your in- 

 dulgence. 



Mr. Waxman. Thank you, Mr. BHley. Mr. Synar. 



Mr. Synar. Thank you, Mr. Chairman. Mr. Johnston, 1,147 peo- 

 ple die each day because of cigarettes. And with those deaths, there 

 is need to replenish the customer base. It is your claim that you 

 do not target children to replenish that base. Is that correct? 



Mr. James Johnston. There is no need to 



Mr. Synar. Is that correct? 



Mr. James Johnston [continuing]. Approach that base and, no, 

 we do not market to children and will not. 



Mr. Synar. Thank you, Mr. Johnston. In deciding to launch your 

 Joe Camel campaign, and I'd ask the staff to put the advertisement 

 up, according to FTC documents, your company sponsored focus 

 groups studies to determine the preferences of your likely cus- 

 tomers. By 1987, your sales of our product among young people had 

 been declining because your product's image was an older person's 

 cigarette. 



In fact, at the time, your market share among 18 to 34-year-olds 

 was on the decline. When your campaign began in 1988, Mr. John- 

 ston, the focus group data confirmed that "Smooth Moves" cam- 

 paign and its later revisions had greater appeal among younger age 

 segment, 18 to 20, than the older segment of 18 to 34. 



