JOE CAMEL TURNS UP IN PORTLAND NIGHTCLUBS

* R.J. Reynolds and other cigarette companies are promoting smoking in
a number of local nightspots

Cigarette smoke thickens the night air as a young crowd spills onto the
sidewalk outside Fellini, a bar in Northwest Portland. Next door, the
Satyricon nightclub regulars wait for the heavy-rock band Morbid Angel to
play.

Ingrid Ohlson, who books bands at Satyricon, waves her Camel cigarette like
a wand. "We try to appeal to everyone," she said -- 20 and 30-years olds,
"yuppies who come here after work to people covered in tattoos like me --
everyone is here."

Tobacco companies are here, too. Although cigarette smoke in bars and clubs
is nothing new, what's new for cities such as Portland are contracts
between tobacco companies and clubs for brand-name sponsorship. Forced into
a corner by advertising restrictions and accusations of targeting underage
youths, the tobacco industry appears to have found a creative way to appeal
to a slightly older crowd.

Fellini and Satyricon are "Camel clubs" -- among about 1,000 such
nightspots across the nation to sell and promote Camel cigarettes
exclusively to their clientele.

R.J. Reynolds Tobacco Co., maker of Camel, was the first to use this
marketing strategy. Beginning in 1994, R.J. Reynolds signed contracts with
popular nightspots in Dallas, Chicago, New York City and Los Angeles.

Now the network has expanded to include smaller cities such as Portland.
Philip Morris Inc. has joined the trend with sponsored music events at its
"Marlboro bars," places such as the Caribou Bar & Grill on West Burnside,
East Bank Saloon and Restaurant in Southeast Portland and Space Room, also
in Southeast Portland.

At Fellini, the Camel logo appears on everything from ashtrays, napkins and
coasters to glasses and posters. By contract, the cigarettes sold on site
are Camels, sometimes offered free by tobacco company representatives,
often hired from the club scene.

"Once in awhile, we'll have an event and (the tobacco company) will do
anything. They will make T-shirts, they'll call around for sponsors,
they'll design and pay for our ads -- whatever we need. They will help us
throw a party," Ohlson said. "We would not have been as successful without
their help."

George Touhouliotis , who owns both Fellini and Satyricon, signed the Camel
contract last year.

Touhouliotis said he recognizes the dangers of cigarette smoke. He quit
smoking 15 years ago out of concern for his health. But he also recognizes
that corporate dollars can help small, locally owned establishments.

"It's not like I sold my soul to the cigarette companies," he said. "It's
business."

At least five other Portland-area clubs and bars have signed contracts with
R.J. Reynolds, including the Gypsy Supper Club and Lounge in Northwest
Portland, La Luna in Southeast Portland and E.J.'s in Northeast Portland.

From trendy downtown nightspots to alternative clubs, tobacco companies are
there.

"We want to be in an environment where we are able to interact with adults.
We have a presence in age-restricted (over 21) venues, and we hope to
reinforce brand loyalty or convert adult smokers to our brand," said Carole
Crosslin , spokeswoman for R.J. Reynolds Tobacco Co. in North Carolina. She
declined to say how much money the tobacco company spends to promote its
product in bars and clubs.

Although Camel clubs sell R.J. Reynolds cigarettes exclusively, people who
frequent these places are free to choose what to smoke, if they want to
smoke at all.

However, sometimes R.J. Reynolds representatives give away packs of
cigarettes or encourage smokers to swap their current brand for a pack of
Camels at shows sponsored by the tobacco company, Crosslin said.

Prizes Awarded

Philip Morris has a policy against offering free cigarettes at its
sponsored events but sometimes awards sweepstakes prizes, such as vacations
at a "Marlboro ranch" in Montana or Arizona, as part of its promotions.

Scott Ballo worries about this new tobacco trend.

"(Tobacco companies) have the best market researchers. Their advertising
campaigns are sleek, sexy and cool. It's smart advertising for something
that's not only dumb, but deadly," he said. Ballo is an account manager at
Pac/West Communications, a public relations firm hired by the Oregon Health
Division to help develop a $2 million campaign to warn about the dangers of
tobacco use.

Ballo said tobacco companies are using a form of "social marketing" to hook
the people who frequent night spots. By placing brand cigarettes in places
where people go for fun, smoking becomes associated with having a good time.

"It may look glamorous now, but the consequences are severe," he said.

In Oregon, 27.4 percent of the adult population smokes cigarettes
regularly, according to a 1996 Oregon Health Division survey. And Oregon
taxpayers pay at least $116 million annually in smoking-related illnesses,
loss of productivity and other tobacco-related health costs. Both firsthand
and secondhand smoke exact a health toll, Ballo said.

About 80 percent of smokers start in high school and develop brand-name
preferences before the age of 18, according to the national Centers for
Disease Control and Prevention. About 98 percent of smokers begin the habit
before the age of 25, so the young-adult population remains attractive to
the tobacco industry.

"When it comes to smoking, I believe in everybody's right to go and kill
themselves as soon as possible," said Jason Angelfell, a Fellini regular
who plays in a band. Angelfell opposes any form of corporate sponsorship.
He said tobacco company dollars are killing the authenticity of alternative
culture.

Others disagree.

"I don't think these ads and contracts make too much of a difference," said
Nick Mondrut, a customer at Gypsy. "Everybody who comes here smokes anyway,
and they smoke what they want to smoke."

But he acknowledged the marketing could be influential. "If you see Camel
everywhere, it could be subliminal. It could sway your opinion about the
cigarette."

Still, smoking is a matter of choice, Satyricon's Ohlson said.

"I'd say that 99 percent of people who smoke cigarettes have smoked before
Camel took over the bar scene," she said. "We all know it's bad for us. It
really is our choice. It doesn't start with Camel and it doesn't end with
Camel."