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The McCain bill ghost haunts the vacant halls of Capitol Hill as members of the 105th Congress returned to their home states this fall, but Big TobacCo fought on in courtrooms of Minnesota, Idaho and Florida, among others-battling huge settlement payments and public relations nightmares. The McCain legislation, which allocated substantial tobacco pricing and marketing power to the Food and Drug Administration, was killed this summer, but its spirit is sure to ris again when the regulatory is. sue is readdressed.

Cigarette makers also invested in the desires of current smokers. According to the Attitudes and Behaviors Related to Smoking Cessation survey, conducted by SmithKline Beecham Consumer Healthcare, 53 percent of smokers are puffing non-regular cigarettes, hoping these light, low-tar and ultra-light varieties will satisfy their desire to smoke while doing less physical damage.

Last year, R.J. Reynolds, which controls about one-quarter of the U.S. cigarette market, with its Winston, Camel, Salem, Doral, Monarch and Best brands, released the Eclipse reduced-smoke cigarette to select markets in Georgia, Nebraska and Tennessee, hoping to generate excitement for an as-yet untapped niche. The product, which took 10 years and about a billion dollars to develop, has not lived up to expectations, though, representatives said. Eclipse features a carbon tip, which produces less-lingering, lower-tar smoke, but consumers have found it difficult to light and puff despite instructions printed on the packaging. In addition, marketers have faced the difficulty of pitching the product without badmouthing its core commodity-regular cigarettes.

This summer Philip Morris, which supplies about half of America's cigarettes with its Marlboro, Benson & Hedges, Merit, Virginia Slims, Parliament and Basic brands, introduced the Accord battery-powered cigarette, a pricey gadget that reduces sidestream smoke, ashes and most lingering odor. For $40, consumers get a carton of specially made cigarettes, a battery charger, an instructional video and a "puff-activated" electronic lighter that holds the cigarette and allows smokers to wait hours between puffs. Since Accord burns at a lower temperature than normal cigarettes, it could introduce fewer harmful chemicals to the body, but the packaging currently does not make health claims. The high-tech smoke is not blowing their socks off, spokespeople say, but they plan to keep working on it and expanding awareness through direct-mail of the product, which has been five years and over $200 million in the making.

A reduced-smoke cigarette is also in the works for B&W, a company representative said, but additional details were not available at press time.

Last month, B&W launched Kool Natural, containing 100 percent natural menthol and other natural flavors. "We believe that Kool Natural meets the taste preferences of consumers who are seeking natural flavors in their cigarettes," said Bob Bexon, senior vice president of marketing for the company, which accounts for about 16 percent of the U.S. cigarette market with its GPC, Misty, Capri, Carlton, Lucky Strike and Viceroy brands. Kool Natural will be available in Kings, l00s, Light Kings and Light 100s. B&W controls about 26 percent of the U.S. menthol market, according to company reports. Kool Natural will be supported with magazine, newspaper and billboard advertising, as well as in-store promotions.

B&W is also planning to re-position its Canton brand, which has 1.2 percent of the market, and up the profile of GPC, the best-selling discount brand with 6 percent of share.

Lightening up

Even the "microsmokes" are going light, as Santa Fe Natural Tobacco Co. extended its Natural American Spirit line this January with a light cigarette, which has already captured 80 percent of the company's sales, and in August with a menthol light. An ultra-light is slated for launch next January, according to Ron Tully, vice president for public affairs, who explained, "There is a large segment of consumers who prefer lights, and we will have both."

All natural

Positioned as an all-natural, premium brand priced at 25 cents to 85 cents higher than standard packs, Natural American Spirit contains a blend of tobacco with no stems or artificial flavorings. For the menthol items, a chamber containing natural menthol is infused into the center of the filter to release a vapor into the smoke as it is inhaled--no menthol is added to the tobacco. Medium and light filter cigarettes have increasingly dense filters and porous papers to dilute the smoke with more air.

"The real benefit of carrying them is the trade margin," Tully said, with an average profit per pack of $1.02.

Regionally popular in New Mexico, California, Oregon, Michigan, New York and Chicago, Tully reported the brand's compound annual growth rate over the past eight years as 17 percent. This month the company will introduce a tobacco-free herbal cigarette and, by next January, will offer all varieties in hard packs.