201 



tine deliveries to others with medium tar and high nicotine deliv- 

 eries and are visualized as attracting those smokers who combine 

 above average inner need with above average concern for health. 



And the potential for this market is very large. 



Let me quote again from the report: "Consumers in these cat- 

 egories accounted for some 40 percent of those who took part in the 

 first product test." This figure is quoted in order to give some idea 

 of the possible potential for cigarettes of the types indicated in the 

 model. It seems to me that this Project Wheat is very relevant to 

 what Dr. Kessler has been telling us. 



Dr. Kessler has told us, beginning in the early 1980's, the nico- 

 tine concentration in the lowest tar cigarettes began to increase. 

 The same point was made in a paper by Mr. Spears. The tobacco 

 industry has explained this trend toward use of high nicotine 

 brands and low tar cigarettes by saying that these blends were 

 used for taste. 



The gentleman from your company made this claim again on 

 April 14. Is this still your view? 



Mr. Sandefur. I don't understand the question. 



Mr. Wyden. The tobacco industry, Mr. Sandefur, has explained 

 a trend towards use of high nicotine blends in low tar cigarettes 

 by saying that these blends were used for taste. Is that still your 

 view? 



Mr. Sandefur. Yes. That's why we produce any blend that we 

 have is for taste. 



Mr. Wyden. But it seems to me that Project Wheat presents a 

 very different rationale. Project Wheat recommends that nicotine 

 levels in low tar cigarettes be increased not for taste but to satisfy 

 smokers' inner need for nicotine. Project Wheat, in our view, has 

 central relevance to the question of whether nicotine containing 

 cigarettes are a drug. 



If Project Wheat is correct, and your company designed cigarettes 

 with deliberately high nicotine levels in order to satisfy _ smoker 

 also inner need for nicotine, it sure looks to me like you all are in 

 the drug making business. So my question to you, Mr. Sandefur, 

 is what specific actions did Brown & Williamson take to follow up 

 on Project Wheat? 



Mr. Sandefur. I have absolutely no idea. This is the first time 

 I've ever heard of Project Wheat. I can tell you that we don't design 

 our cigarettes that way. As I stated previously, I've been in this 

 business for 30 years and most of the time in marketing. And our 

 cigarettes aren't designed that way. We get specifications for our 

 cigarettes we set a target in terms of the taste characteristics we 

 want and that's the way we manufacture, produce and manufac- 

 ture our cigarettes. 



Mr. Waxman. Mr. Wyden, would you yield? 



Mr. Wyden. Tnis document, Mr. Sandefur, was submitted by 

 your company to this subcommittee while you were CEO and you 

 have no knowledge of it? 



Mr. SandsFuTI. Congressm-an, we submitted all the documents 

 we had on the subject that you asked for. There is absolutely no 

 way that I could be knowledgeable about all these documents. This 

 was done in 1976, Congressman. And I've never — ^I've never heard 

 of it. 



