Amid government official’s growing surveillance on a mysterious vaping-related lung illness and its connection with smoking e-cigarettes, Kevin Burns has handed in his resignation from the position of Juul Labs’ CEO.
The Chief Executive position has now been acquired by Altria Group Inc.’s K.C. Crosthwaite, who has served as chief growth officer of tobacco giant Altria.
Altria, the maker of Marlboro cigarettes bought a 35% stake in Juul back in December for about $13 billion.
“Since joining Juul Labs, I have worked non-stop, helping turn a small firm into a worldwide business, so a few weeks ago I decided that now was the right time for me to step down,” says Burns.
Altria confirmed that its collaboration talks with fellow vaping founder Philip Morris will not come to fruition.
While Juul once had explosive growth, it is currently facing serious threats.
Trump’s administration is gearing up to ban the sale of flavored e-cigarettes across the nation within a span of one month.
Juul is going through multiple investigations, thanks to its marketing practices.
Juul has been promoting e-cigarettes for years while ignoring the US e-cigarette law of advertising. Juul contains addictive nicotine; however, it was promoted as an alternative to traditional smoking products.
Keeping in line with that, FDA recently warned Juul for making false health claims without any scientifically proven evidence and without any approval of authorities.
Juul is the company that US e-cigarette market but its crackdown follows a serious lung injury in the US related to vaping products.
According to health authorities, till date, nine people have died and 530 are reported ill. What do you think about the impending ban? Share your thoughts in the comments section below!
Also Read: Walmart to stop selling e-cigarettes