Juul Shake-up: C.E.O. Steps Down
The chief executive of Juul Labs, the dominant e-cigarette company that has been the target of public and regulatory outrage over the soaring use of teenage vaping, stepped down on Wednesday.
The executive, Kevin Burns, will be replaced by K.C. Croswaite, an executive from Altria, the major tobacco company that owns a 35 percent stake in Juul, the San-Francisco-based company.
Juul also said it would end one of its campaigns, “Make the Switch,” which the Food and Drug Administration had criticized as an effort to portray its e-cigarettes as safer than traditional cigarettes. The company also said it would not fight the Trump administration’s proposal to ban flavored e-cigarettes.
In addition, Altria and Philip Morris International said on Wednesday that they had ended talks to merge, dashing the chances of reuniting the two arms of what had once been Philip Morris.
In a statement, the companies said they would instead focus on rolling out the IQOS heated tobacco product in the United States. They emphasized that IQOS, which Philip Morris International sells abroad, is not “an e-vapor product,” unlike Juul’s devices.
This is a developing story. Check back for updates.
Sheila Kaplan is a prize-winning investigative reporter who covers the Food and Drug Administration, the tobacco industry and the intersection of money, medicine and politics. @bySheilaKaplan
Michael de la Merced joined The Times as a reporter in April 2006, covering Wall Street and finance. Among his main coverage areas are mergers and acquisitions, bankruptcies and the private equity industry. @m_delamerced • Facebook
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