We are basically in the nicotine business. . . . Effective control of nicotine in our products should equate to a significant product performance and cost advantage.

If younger adults turn away from smoking, the industry will decline, just as a population which does not give birth will eventually dwindle.

If our company is to survive and prosper, over the long term we must get our share of the youth market.

I believe that for the typical smoker nicotine satisfaction is the dominant desire, as opposed to flavor and other satisfactions.

[A]ny desired additional nicotine 'kick' could be easily obtained through pH regulation.

It should be said that we are presently, and I believe unfairly, constrained from directly promoting cigarettes to the youth market...Realistically, if our Company is to survive and prosper, over the long term, we must get our share of the youth market. In my opinion, this will require new brands tailored to the youth market.

First, let's look at the importance of the young adult in the cigarette market. In 1960, this young adult market , the 14 to 24 age group, represented 21% of the population. As seen by this chart, they will represent 27% of the population in 1975, they represent tomorrow's cigarette business, as this 14 -24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years .