HEROIN, COCAINE 'COMPETITION' FOR YOUNG SMOKERS

The tobacco industry's argument that it is not interested in children has
been discredited by the Tobacco Papers, with one executive arguing
cigarettes were competing with heroin and cocaine for the youth market.

Many manufacturers have collated research on children as young as 14, the
papers show.

Notes for an undated presentation by Mr D.E. Creighton, an executive with
British-American Tobacco, which in Australia has formed as a result of the
merger between Rothmans and WD&HO Wills, show the industry's interest in
presenting cigarettes with a rebellious image.

Under the heading "future market trends, directions, constraints and
opportunities", Mr Creighton predicts "competition with cannabis, glue
sniffing and possibly hard drugs - heroin and cocaine".

"We must find a way to appeal to the young, who want to protest, so that
the product image and the product will satisfy this part of the market. The
cigar and pipe market has an 'old' image. Cigarettes will follow as
something 'my father and grandfather did' unless we are careful."

This presentation was among 26 million pages of internal industry documents
gradually being released onto the Internet as a result of a settlement
between the tobacco industry and 46 US States last November.

The documents detail the industry's strategies to hide its knowledge of
that smoking was dangerous and to peddle its influence throughout the
political, sporting, media and cultural worlds.

"Youth market" was the title of a confidential letter from Mr John McCain
of the New York ad agency William Esty to Mr Jack Watson of the marketing
department at R.J. Reynolds Tobacco Company, dated March 8, 1973.

Referring to "demographic data on 14-20 year old smokers", Mr McCain wrote
that "13.1% of total respondents 14-20 were smokers; this compares to a
national average of about 30% for all ages".

"The progression of smoking incidence begins at 3.7% for 14-15 and moves up
to 23.1% for 18-20 ...

The New England (20.5%) and Mid-Atlantic (16.3%) regions have the highest
14-20 smoker development ...

"The top five brands ... account for 78.7% of the total 14-20 market. The
remaining 45 brands account for only 21.3% ...

"The most intriguing aspect of the performance of these three brands is the
progression of preference share through the 14-15, 16-17, 18-20 age
segments.

"Marlboro's share among the 14-15 segment is a phenomenal 51%. It drops off
steadily to 33.5% among 18-20 and 21.3% among the 21-24 group.

"Many manufacturers have 'studied' the 14-20 market in hopes of uncovering
the 'secret' of the instant popularity some brands enjoy to the almost
complete exclusion of others (as shown above). Creating a 'fad' in this
market can be a great bonanza.""

Marlboro's share of the youth market worried the company enough to
commission research from Leo Burnett USA which was presented to the
manufacturers, WD&HO Wills, in 1990.

Marlboro's share of "entry level smokers", as the researchers called them,
had dropped from 55 per cent in 1976 to 11 per cent in 1985. A key problem
identified was that Marlboro's image was not "aspirational to youth".

The report also said Marlboro had also been hurt by competition from two
"key youth brands" - Winfield and Peter Jackson.