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This is not availble on line for free anymore, so am

taking the liberty to post the full article. I worked

for Kraft Foods for 8 years during the mid 80s during

the buy outs and witnessed much of the beginning

" influence " the tobacco companies had on the food

companies.

Jeff

http://www.chicagotribune.com/business/chi-0601290254jan29,1,3082179.story?ctrac\

k=1 & cset=true

" Still, Kraft and Philip scientists traded

ideas for studying the fine details of how the brain

processes tastes and smells. A 1997 planning memo

proposed investing in " neuroimaging, " or brain scans,

and research on sensory neuroreceptors, which are

sites on brain cells that process smells and tastes.

That synergy group included Spence, now Kraft's

research chief, and Dick , Philip USA's

senior vice president for research and science. "

TRIBUNE SPECIAL REPORT: A FOLLOW-UP

Where there's smoke, there might be food research, too

Documents indicate Kraft, Philip shared

expertise on how the brain processes tastes, smells

By Callahan, Manier and Delroy

Tribune staff reporters

Published January 29, 2006

America's largest foodmaker and its biggest cigarette

company for years have likened themselves to distant

siblings, giants that just happened to be owned by the

same parent company.

In fact, Kraft Foods Inc. and Philip USA have

pooled expertise in search of making more-alluring

foods and cigarettes since the dawn of their corporate

pairing two decades ago, a Tribune examination of

tobacco-lawsuit documents has found.

Documents show Northfield-based Kraft collaborated on

flavor issues with some of the same Philip

brain researchers who probed what gives cigarettes

their kick. None of those scientists was more

controversial than Gullotta, a former top Philip

researcher whose brain experiments suggested

the company knew more than it claimed about

cigarettes' addictive nature.

The documents also reveal that Kraft and Philip

discussed investing jointly in brain scans to study

how the brain processes tastes and smells. Food

scientists even helped their tobacco counterparts make

experimental cigarettes--working after-hours in a

German coffee plant.

A Tribune series on obesity last year detailed Kraft's

interest in brain science, including how the brain is

rewarded by sweet and fatty foods. This report delves

deeper into the collaboration between cigarette

researchers and food scientists.

The records, which span a period from the mid-1980s to

2001, were public but buried among more than 3 million

documents that Philip turned over in settling

tobacco litigation.

Kraft, as a food company, was not compelled to release

documents. But available records from Philip ,

specifically from the files of tobacco employees,

provide a tantalizing glimpse into the interplay

between food and tobacco scientists.

Their collaboration on brain research " certainly

sounds ominous, " said Lloyd Kolbe, an Indiana

University health sciences professor who served on a

federal panel that reported last year on the marketing

of junk food to children. " We need to understand the

nature of that relationship, " he said.

As America grapples with an epidemic of obesity, some

plaintiffs' lawyers would love to prove that junk

food-makers manipulate their products to make it

harder for customers to stop eating them.

Kraft has not been accused of such conduct in

lawsuits. But other major food companies such as

Mc's have been sued for contributing to the

obesity of children.

Kraft declined to answer specific questions about

whether it has done or funded research on the brain

areas known to play a role in addiction or controlling

hunger. The company would not discuss any of its brain

research in detail.

The maker of Oreo cookies, Jell-O pudding and

Mayer wieners also would not reveal whether its work

with cigarette scientists influenced Kraft products,

which reaped $24.5 billion in sales in the first nine

months of last year.

" We do not conduct or fund any research aimed at

creating dependency upon any of our products, or

limiting consumers' ability to control their eating

behaviors, " Daigler, a Kraft spokeswoman, said

in a written statement. " Nothing in the documents that

you've called to our attention suggests otherwise

about the past. "

However, a 1998 memo suggested that Kraft, Philip

and Brewing, which were corporate

siblings at the time, collaborate on foods and drinks

" engineered to influence " a customer's mood or sense

of fullness. It is unclear from the documents whether

those companies acted on that suggestion.

Kraft declined to answer questions about the memo,

which bore the initials of Jane V. Leland, a senior

Kraft scientist and a leader for corporate synergy

efforts. Leland referred calls to a Kraft spokeswoman.

Kraft, Philip USA and corporate parent Altria

Group Inc. all declined to answer questions about

Gullotta, the former Philip brain scientist.

Documents released in the tobacco-liability suits

revealed his role supervising brain tests at a secret

Philip lab in Germany. Gullotta's work is cited

in a pending U.S. Department of Justice fraud suit

against the tobacco-makers as evidence that Philip

knew more about the addictive nature of

cigarettes than the company told the public.

Gullotta was a driving force behind cross-company

efforts to figure out how people perceive the tastes

and smells of foods and cigarettes. Documents show

Gullotta met in 1991 with Kraft's scientists in

Glenview and Tarrytown, N.Y. In Glenview, Gullotta and

Kraft neuroscientists discussed how to study nerve

impulses using rats or human subjects. At Kraft's

General Foods coffee division in New York, he

consulted with researchers on how people perceive the

smell of coffee and lectured about his work on how the

brain processes flavor.

" I anticipate more interactions (collaborations?) with

General Foods in the near future, " Gullotta wrote.

He listed himself as a consultant to Kraft in a 1992

memo he wrote.

Two years earlier, Gullotta co-authored a memo titled

" Raison d'etre " --French for " reason for being. " In it,

he and his colleagues outlined the importance of their

electrophysiological studies, in which they measured

brain activity by hooking up electrodes to smokers'

scalps. The research showed how much nicotine was

needed in order to trigger a feeling of " impact " in

smokers--a sensation that helps explain why cigarettes

are addictive.

In the same memo, Gullotta noted that Kraft had

expressed interest in his work on brain responses to

tastes and smells " as a means of understanding flavor

differences in certain products. " Gullotta, who

retired in 2002, did not return repeated phone calls

seeking comment.

In general, Kraft's Daigler said it's not surprising

some of its scientists " look for ways to exchange

information, share best practices and identify

efficiencies that reduce overall costs. " She also

noted, " There clearly was a shared interest among

these employees in issues relating to flavor and

aroma--issues that are relevant to a number of

otherwise unrelated industries. "

The primary goal of Kraft's research and development

team, Daigler said, is " ensuring the safety and

wholesomeness of our foods. "

Still, Kraft and Philip scientists traded ideas

for studying the fine details of how the brain

processes tastes and smells. A 1997 planning memo

proposed investing in " neuroimaging, " or brain scans,

and research on sensory neuroreceptors, which are

sites on brain cells that process smells and tastes.

That synergy group included Spence, now Kraft's

research chief, and Dick , Philip USA's

senior vice president for research and science.

The relationships between cigarette scientists and

food researchers could play into the hands of

plaintiffs' lawyers and their strategists. Among them

is Banzhaf, a law professor at Washington

University who has plotted legal strategies against

the makers of cigarettes and foods. He said extensive

research links might make it easier to convince juries

that food companies share responsibility for the

obesity crisis.

" It becomes relevant not only because they are the

same company, siblings in effect, but the very same

scientists, some in the very same laboratories, are

working side by side, " Banzhaf said.

Other lawyers who took on the tobacco industry said

the companies' collaboration could startle consumers

who don't realize how similar the research agendas at

food and tobacco companies can be.

" What seems to be happening is these companies said,

`Hey, you guys are sort of in the same business,' "

said Daynard, a law professor at Northeastern

University in Boston who helped formulate strategies

for suing food and cigarette companies.

Like cigarettes, he said, processed foods " are highly

engineered to make the consumer react in a particular

way. "

Kraft says it is responding to concerns about obesity

by reformulating products, revamping marketing and

providing more information to its customers. Those

efforts, Daigler said, " are far more constructive ...

than any lawsuit could be. "

She noted that nearly all of the documents the Tribune

found were old and available to the public since the

late 1990s.

Philip has released few documents since 2001,

making it difficult to determine whether or how the

cigarette-maker and Kraft have collaborated in recent

years.

But the earlier documents show that the researchers

traded tips on a range of sensory technology. At an

intra-company workshop in 2000, Philip

scientists presented their findings on the chemical

composition of smoke while Kraft researchers lectured

on how they used a tool called an " electronic

nose " --capable of detecting the chemicals in odors--in

work on Capri Sun fruit-flavored drinks.

Weighing in on addiction

The documents do not show that Kraft employees

researched cigarette addiction, but one researcher

offered her opinion on that controversial topic. Kraft

scientist Dorothy Chou in 1994 offered cigarette

executives ways to argue that nicotine was not

addictive.

In the memo to Philip USA's research director,

Chou raised objections to calling cigarettes

addictive. Unlike alcohol, depressants or Valium,

" withdrawal from nicotine never threatens physical

well-being, " she wrote, noting that her boss at Kraft

had recommended she send her opinion to Philip .

Just two years earlier, Chou strongly recommended

Philip fund a university study to probe whether

cigarette smoking had " beneficial effects on

Alzheimer's patients. " She suggested specific ways of

using brain scans in the study.

Chou, who retired in 1996, referred questions to

officials at Kraft.

At times, food scientists aided cigarette development.

Scientists from Kraft's Maxwell House coffee division

in the mid-1980s helped Philip make test

batches of low-nicotine cigarettes in coffee labs in

New York and Germany, using their expertise in taking

caffeine out of coffee to extract nicotine from

tobacco.

Such a cigarette wasn't healthier. Cigarettes kill by

releasing carbon monoxide, tar and other chemicals

that increase the risk of cancer, emphysema and other

ailments. But research at the time showed that

consumers thought low-nicotine cigarettes were

healthier and would buy some based on that misguided

belief.

" It should be noted that the health benefits linked to

this product appear to be invalid/misconceptions, "

noted a 1988 market research report commissioned by

Philip USA. " The absence of information to the

contrary works in the product's favor. "

Philip ultimately built its own plant to

extract nicotine. The company test marketed but later

dropped the product.

Kraft's Daigler sees nothing unusual about such

cooperation. " It's been publicly understood for some

time that the coffee industry's methods and equipment

for making decaffeinated coffee were relevant to

efforts to reduce nicotine levels in tobacco

products, " she said.

Controlling `pleasure drugs'

The contacts between Philip and Kraft reflect

how the companies viewed food and tobacco, said

Farone, former director of applied research at

Philip . Farone, who left the company in 1984

before it bought Kraft, said that from 1980 onward

there were talks in executive meetings about acquiring

coffee and food companies.

Farone, who has testified against his former employer

in tobacco lawsuits, said in a recent interview that

he believed the strategy was " to control all of the

pleasure drugs that are not regulated. "

Victor Han, a spokesman for Altria, now the parent

company of Kraft and Philip , said in a written

statement that such a strategy was " unknown to us

here. " Han said Altria " diversified at that time as a

means to improve growth and expand the scope of our

businesses. "

The company long has sought to downplay the links

between its food and tobacco arms. " Altria's companies

operate independently of each other, " Han said. " Kraft

manufactures and markets its own distinct products.

Scientists at our operating companies may occasionally

share ideas and expertise for the benefit of their

respective businesses. "

But the corporate links have caused headaches for the

foodmaker. Anti-smoking activists in 1994 launched a

boycott of Kraft products.

Philip hired Burson-Marsteller, a

public-relations concern, to gather intelligence on

the activists. In preparing executives for a

worst-case scenario, the PR firm dreamed up a possible

jingle that protesters might sing to the tune of " I

wish I were an Meyer Wiener " :

" I wish I were a stockholder of Kraft. That is what I

truly want to be; cause if I were a stockholder of

Kraft, I'd stop this cruel tragedy ... Boycott Kraft

General Foods! "

The companies have worked to limit collateral damage

from the tobacco arm's bad public image. In 2003 the

parent company changed its name from Philip

Cos. to Altria Group Inc. Altria executives said they

did so partly to clarify that the corporate parent was

a holding company, not a cigarette-maker.

Now Kraft and Philip are planning to part ways.

Once the courts rule on some key tobacco suits,

Altria, which owns nearly 87 percent of Kraft, is

preparing to spin off the foodmaker entirely.

- - -

Research elicits different reactions

Public documents related to tobacco lawsuits provide a

glimpse into the interplay between scientists at Kraft

and Philip .

Point

Their collaboration on brain research " certainly

sounds ominous, " said Lloyd Kolbe, an Indiana

University health sciences professor.

Counterpoint

" We do not conduct or fund any research aimed at

creating dependency upon any of our products, or

limiting consumers' ability to control their eating

behaviors, " Daigler, a Kraft spokeswoman, said

in a written statement.

- - -

Under the same umbrella

Kraft Foods, America's largest foodmaker, and Philip

USA, the biggest cigarette company in the U.S.,

are owned by Altria Group. According to company

spokesman Victor Han, Altria's companies operate

independently of each other. " Scientists at our

operating companies may occasionally share ideas and

expertise for the benefit of their respective

businesses. "

ALTRIA GROUP OF COMPANIES

1961

Philip International (100% ownership)

- International tobacco

- Produces seven of the top 20 best-selling global

cigarette brands

Brands: Marlboro, Lark, Chesterfield, L & M

1968

Philip USA (100% ownership)

- Domestic tobacco

- Largest tobacco company in U.S. with half of the

cigarette market's retail share

Brands: Marlboro, Virginia Slims, Parliament, Basic

1982

Philip Capital (100% ownership)

- Financial services

- Investment company that manages a portfolio of

leveraged and direct finance assets

- Provides Altria with financial, tax and economic

benefits

1995

Kraft Foods (About 85% ownership)

- Food and beverage

- Largest branded food and beverage company with

headquarters in the U.S. and second-largest in the

world

Brands: Kraft cheeses, Maxwell House coffee, Oreo

cookies, Mayer meats

Other interest: Altria holds a 28.7 percent stake in

SAB, the world's second-largest brewer.

THE EVOLUTION OF ALTRIA

In 1902 Philip & Co. is incorporated and later

renamed Philip .

1961: Philip Overseas is renamed Philip

International.

1968: Philip Domestic is renamed Philip

USA.

1970: Philip acquires Brewing Co.

1982: Philip Credit is incorporated, later

renamed Philip Capital.

1985: Philip Cos. is incorporated and becomes

the publicly held holding company and parent of Philip

. Philip Cos. acquires General Foods.

1988: Philip Cos. acquires Kraft.

1989: Kraft and General Foods combine to form Kraft

General Foods.

1990: Kraft General Foods acquires s Suchard, a

leading European coffee and candy company.

1995: Kraft General Foods is renamed Kraft Foods.

2000: Philip Cos acquires Nabisco, which

becomes part of Kraft Foods.

2001: Kraft Foods completes $8.4 billion IPO. Philip

Cos. proposes to change its name to Altria

Group.

2002: Shareholders approve name change to Altria

Group. Brewing Co. is merged into South African

Breweries PLC, becoming SAB.

2003: Name change to Altria Group takes effect.

Source: Altria Group

Chicago Tribune

----------

pcallahan@..., jmanier@...,

dalexander@...

Go to chicagotribune.com/oreo to read documents

related to this story and the Tribune's three-part

series, " The Oreo, obesity and us. "

Copyright © 2006, Chicago Tribune

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Hi Jeff:

You have an interesting point about a possibly nefarious relationship

between Tobacco and Kraft. I had not made that connection

previously. Thank you. Naturally I have no sympathy at all for

tobacco companies.

Rodney.

--- In , Jeff Novick <chefjeff40@...>

wrote:

>

> This is not availble on line for free anymore, so am

> taking the liberty to post the full article. I worked

> for Kraft Foods for 8 years during the mid 80s during

> the buy outs and witnessed much of the beginning

> " influence " the tobacco companies had on the food

> companies.

>

> Jeff

>

> http://www.chicagotribune.com/business/chi-

0601290254jan29,1,3082179.story?ctrack=1 & cset=true

>

> " Still, Kraft and Philip scientists traded

> ideas for studying the fine details of how the brain

> processes tastes and smells. A 1997 planning memo

> proposed investing in " neuroimaging, " or brain scans,

> and research on sensory neuroreceptors, which are

> sites on brain cells that process smells and tastes.

> That synergy group included Spence, now Kraft's

> research chief, and Dick , Philip USA's

> senior vice president for research and science. "

>

> TRIBUNE SPECIAL REPORT: A FOLLOW-UP

>

> Where there's smoke, there might be food research, too

> Documents indicate Kraft, Philip shared

> expertise on how the brain processes tastes, smells .......

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I don't know whether this is a shame on them for trying to sell us more product, or shame on us for ASSuming they would hold our interests any higher than theirs. I like to say life is an ongoing IQ test and this is yet another example of how poorly many are scoring.I share a general concern since my tax dollars and healthcare expenses will no doubt be influenced by these general population trends, but I don't see what corporate behavior and obese populations have to do with our practice of proper nutrition.The human animal is remarkably resistant to embracing good advice however well intentioned. Our energy is probably better spent on our own personal issues. My apologies to any who are still addicted to junk food after being exposed to the poorly concealed truth that "it is bad for you". At this point we're flogging an IMO already well explored and dead issue. Heaping new angles on  top of the old profit motive doesn't change the more important data point, such foods aren't fit for consumption. JROn Aug 15, 2006, at 10:29 AM, Rodney wrote:Hi Jeff:You have an interesting point about a possibly nefarious relationship between Tobacco and Kraft. I had not made that connection previously. Thank you. Naturally I have no sympathy at all for tobacco companies.Rodney.> Jeff> >

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Hi Jeff & Rodney,

This has also been explored by the magazine _Adbusters_ and its related

activists. That's the other side of the coin, but I think they have a good

point:

http://adbusters.org/spoofads/food/products/

http://www.no-smoke.org/getthefacts.php?id=78

Cheers,

[ ] Re: Food & Tobacco Together

> Hi Jeff:

>

> You have an interesting point about a possibly nefarious

> relationship

> between Tobacco and Kraft. I had not made that connection

> previously. Thank you. Naturally I have no sympathy at all for

> tobacco companies.

>

> Rodney.

>

>

> >

> > This is not availble on line for free anymore, so am

> > taking the liberty to post the full article. I worked

> > for Kraft Foods for 8 years during the mid 80s during

> > the buy outs and witnessed much of the beginning

> > " influence " the tobacco companies had on the food

> > companies.

> >

> > Jeff

> >

> > http://www.chicagotribune.com/business/chi-

> 0601290254jan29,1,3082179.story?ctrack=1 & cset=true

> >

> > " Still, Kraft and Philip scientists traded

> > ideas for studying the fine details of how the brain

> > processes tastes and smells. A 1997 planning memo

> > proposed investing in " neuroimaging, " or brain scans,

> > and research on sensory neuroreceptors, which are

> > sites on brain cells that process smells and tastes.

> > That synergy group included Spence, now Kraft's

> > research chief, and Dick , Philip USA's

> > senior vice president for research and science. "

> >

> > TRIBUNE SPECIAL REPORT: A FOLLOW-UP

> >

> > Where there's smoke, there might be food research, too

> > Documents indicate Kraft, Philip shared

> > expertise on how the brain processes tastes, smells .......

>

>

>

>

>

>

>

>

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