The e-cigarette manufacturer Juul Labs is reorganizing its corporate leadership, reacting to the growing criticism of recent weeks. CEO Kevin Burns explained his resignation. KC Crosthwaite will replace him, the company said. With Crosthwaite takes over a manager of the US tobacco company Altria, which is involved with 35 percent of Juul.
Altria also announced that it had ended talks with US tobacco company Philip Morris over a possible merger. No agreement has been reached, said Altria boss Howard Willard.
Juul wants to stop advertising and lobbying for the time being
The start-up Juul from San Francisco is because of dubious methods in the marketing of e-cigarettes to young people massively in the criticism and in the focus of various investigations by US authorities. Electronic cigarettes are being watched more closely after the deaths of nine people in the US.
Parallel to the change of boss announced Juul, in the US all advertising measures in radio, print and online for the time being. Juul has stopped social media advertising in the past to stop teens from buying the products. Now any kind of advertising and lobbying would be finished, the company said.
Video: E-cigarette bans in the US
President Donald Trump announced "very strict" regulations and described the use of e-cigarettes as a "big problem". According to the US Department of Health (CDC), 530 cases of lung injury have been reported in the US after the use of e-cigarettes.
Juul recently imposed significant market restrictions in Germany. For the time being, the company was forbidden by the court to trade cartridges without electronic symbols on the plastic housing.
A second injunction prohibits Juul from selling cartridges where the actual nicotine content differs by more than a milligram from the value stated on the package.