Briefing

Juul Labs switches CEO, halts U.S. advertising and lobbying

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Kevin Burns has stepped down in favour of K.C. Crosthwaite, who was chief growth officer at Altria, the tobacco giant that is one of the company’s major investors. Altria and Philip Morris ended talks of a US$187-billion merger. Juul also said it will stop advertising its products on television, in print and digitally, and will not lobby the U.S. government on the Food and Drug Administration (FDA)’s upcoming vaping regulations. “Juul Labs is a global company and this announcement impacts the U.S. only,” StrategyCorp’s Jeff Lang-Weir told The Logic on behalf of Juul Canada. (The Logic)

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Talking point: The three companies’ decisions reflect the challenges facing vape firms in the U.S., where the Trump administration is planning to ban all flavoured products. Juul is facing multiple investigations, including by the Federal Trade Commission, the FDA and criminal prosecutors. Altria is hedging its bet on Juul by proceeding with the launch of an FDA-approved heated tobacco device in partnership with Philip Morris. Health Canada has not announced any new investigations or policies in response to the U.S. government actions. The agency is currently considering new regulations to restrict vape advertising on social media and at the checkout in stores, as well as banning more flavours. Juul is also not changing its Canadian plans—it will continue to lobby and advertise in Canada.