http://en.wikipedia.org/wiki/Premier_(cigarette)
also, from another page:
"Despite such criticism, the major cigarette makers have attempted to market several versions of safer cigarettes. In 1988, RJR introduced a high-tech cigarette called Premier. Premier, touted as a virtually smokeless cigarette that dramatically reduced the cancer-causing compounds inhaled by smokers, was made of aluminum capsules that contained tobacco pellets. The pellets were heated instead of burned, thereby producing less smoke and ash than traditional cigarettes. Although the product looked like a traditional cigarette, it required its own instruction booklet showing consumers how to light it.
From the beginning, Premier had several strikes against it. RJR had spent an estimated $800 million developing the brand, and the total cost was expected to soar to $1 billion by the time it was placed in national distribution. The costly project was put into test market just as Kohlberg Kravis Roberts & Co. had embarked on a $25 billion leveraged buyout of RJR that had saddled the company with debt. And the cigarette faced a lengthy regulatory battle after public health officials argued it should be regulated by the FDA as a drug. But the biggest problem with Premier was the fact that consumers simply couldn't get used to it. Many smokers complained about the taste, which some smokers said left a charcoal taste in their mouths. RJR had also gambled that smokers would be willing to give Premier several tries before making a final decision about whether to smoke it. RLR estimated that to acquire a taste for Premier, smokers would have to consume two to three packs to be won over. But as it turned out, most smokers took one cigarette and shared the rest of the pack with friends, and few bothered to buy it again. RJR scrapped the brand in early 1989, less than a year after it was introduced."
guess my father wasn't crazy afterall (i gave him pretty much the same response as above)