Juul Labs CEO Kevin Burns to Step Down

Over 530 reports of lung injuries due to e-cigarettes inspire worry about the tobacco alternative’s health effects. (Flickr, www.vaping360.com)

Juul Labs announced on September 25 that CEO Kevin Burns will step down, according to the Wall Street Journal. The same day, Altria Group, which owns a 35 percent stake in Juul, ended talks with Philip Morris International about a potential merger between the two tobacco giants.

Juul cited its need to address proposed e-cigarette regulations as the reason for its leadership change. However, Juul has said that it will not lobby against the Trump administration’s ban on non-tobacco flavored e-cigarettes.

The blockbuster merger would have created a global corporation worth almost $200 billion. Phillip Morris became increasingly wary of a deal as the threat of increased government regulation grew, the Wall Street Journal reports. 

Increased regulation stems from recent revelations about the negative health impacts of e-cigarettes. On September 19, the Center for Disease Control and Prevention cited 530 cases of lung injuries and eight confirmed deaths in the U.S. due to e-cigarettes. A day later, the Food and Drug Administration proposed new rules that force e-cigarette manufacturers to maintain records of their legal marketing status, Reuters reports.

Juul has gradually dominated the e-cigarette market, gaining notoriety for its popularity among teenagers. According to the Wall Street Journal, youth use of e-cigarettes increased by 78 percent from 2017 to 2018. This spike in young people vaping has caused many to question whether the advertising practices of Juul and other e-cigarette companies target youth.

Juul has denied allegations that it’s social-media marketing targets teenagers, but it has not done so without controversy. According to the Wall Street Journal, Juul formerly paid influencers to advertise its products, a policy which ended after huge backlash. On September 23, federal prosecutors in California commenced a criminal probe into Juul to investigate the corporation’s advertising practices.