Juul CEO is out, and it stops all advertising as vaping crisis escalates

Juul announced Wednesday that CEO Kevin Burns will be replaced by K.C. Crosthwaite, who had been chief growth officer at tobacco company Altria, a major investor in Juul. In that position, Crosthwaite oversaw an expansion into alternatives to traditional cigarettes. He also played a key role with commercial and regulatory efforts related to the US launch of iQOS, a device that heats tobacco rather than burning it.

"I have long believed in a future where adult smokers overwhelmingly choose alternative products like Juul," said Crosthwaite."Unfortunately, today that future is at risk due to unacceptable levels of youth usage and eroding public confidence in our 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.

Juul's weekly US sales more than tripled from the start of 2018 through the end of October, according to Herzog. Then, in November, it announced that to combat underage vaping, it stopped shipping non-tobacco and non- menthol-based flavors, such as cucumber, creme, mango, and fruit. Sales briefly fell, but by March 2019 they were topping the company's previous sales peak. Sales began falling again in July, as reports of health problems started to surface.

"The company has not managed the change in perceptions of e-cigarettes," said Hubbard, an expert on CEO dismissals and reputation crises."In a short time, what was seen by some as a safer alternative to smoking has been vilified. When compared to traditional tobacco products - which have remained on the shelves for decades despite being proven dangerous - e-cigarette makers have failed spectacularly.

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