Juul Labs chief executive Kevin Burns stepped down from the tobacco vaping company on Wednesday amid growing concern about teenage vaping, the safety of its products and legal challenges.
Crosthwaite was the chief growth officer at Altria Group, where he oversaw the company's expansion into e-cigarettes and helped with the USA launch of IQOS, a tobacco heating system, according to a statement from Juul. As the Wall Street Journal reports, "While Juul plans to continue its expansion, the company will scale back the pace of its hiring and some jobs will be eliminated".
Juul also announced on Wednesday that it would suspend all broadcast, print and digital advertising in the US. The company is also continuing to try and diversify beyond traditional cigarettes as well.
Altria has exclusively sold Marlboro cigarettes and other tobacco brands in the United States, while Philip Morris has handled worldwide sales. Unlike Juul, IQOS has been authorized by the Food and Drug Administration. CEO André Calantzopoulos said Wednesday that the companies will instead focus on launching IQOS in the U.S. IQOS is a heat-not-burn cigarette alternative made by Philip Morris.
Shares in Philip Morris rose 6.5% in premarket trading, while those of Altria were up 3.7 percent.
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The FAA welcomed the scrutiny from safety consultants and looked forward to their findings, it acknowledged in a press release. The FAA and NTSB declined to remark, referring inquiries to the Indonesian authorities.
He also said that Mr. Crosthwaite, who heads up Altria's IQOS efforts, would "work in a responsible way" with the FDA and other regulators to address youth vaping. Burns became CEO after having previously worked as chief operating officer of Chobani, a maker of Greek yogurt. The startup was growing quickly and its sleek vaporizers, introduced in 2015, had already become a teen status symbol and growing problem in US schools.
The decision comes as controversy swirls around vaping-industry leader Juul, which received a $12.8 billion investment from Altria in December. That has led the institute's director, Nora Volkow, to declare vaping "a public health crisis".
For its part, Juul has taken steps to combat the selling of its products to minors, including requiring some retail stores to electronically verify government-issued ID before allowing someone to buy one of its products. The banned flavors, including mint and menthol, represent more than 80% of Juul's sales.
"Not a single illness or death has been linked to a legal vaping device".
Massachusetts Gov. Charlie Bakker announced Tuesday a four-month ban on the sale of all vaping products in the state. Juul hasn't been linked to the illnesses.