Embattled e-cigarette manufacturer Juul announced its CEO, Kevin Burns, left the company in an unexpected staff shakeup Wednesday morning. He will be replaced by K.C. Crosthwaite, an official at the tobacco giant Altria Group, which owns a 35% stake in Juul.
Crosthwaite oversaw Altria’s expansion into the business of creating smoking alternatives, including the vaping device IQOS from Philip Morris, approved by the Food and Drug Administration in April.
Juul announced Wednesday that the company is also ending all lobbying efforts against the Trump administration’s proposed ban on flavored e-cigarettes and suspending all broadcast, print, and digital advertising in the United States.
Crosthwaite said in a statement that the company’s mission was at risk because of a sudden rise in youth vaping and eroding public trust in the industry. “Against that backdrop, we must strive to work with regulators, policymakers and other stakeholders, and earn the trust of the societies in which we operate,” he said.
Juul’s “Make the Switch” campaign showing that their device is helping adult smokers transition from regular cigarettes has been overshadowed by allegations that the company markets its products to teens, who are now taking up vaping at alarming rates.
Congress and the Trump administration have intensified scrutiny of the vaping industry in recent weeks in response to a rise in vaping-related illnesses.
Nine deaths due to lung diseases linked to vaping have been confirmed since August, and 530 cases of lung disease are under Centers for Disease Control and Prevention investigation. Officials on state and federal levels have warned the public against using vaping products, whether they contain nicotine or the psychoactive chemical in marijuana, THC. Many patients reported they had used nicotine and THC vaping devices and showed similar symptoms including shortness of breath, chest pain, and nausea.
