Kevin Burns, CEO, JUUL, Left, and Carl Quintanilla of CNBC
Kevin Burns has resigned as CEO of Juul and will be replaced by the former CEO of Altria K.C. Crosthwaite, Juul announced Wednesday.
Altria invested $ 12.8 billion for a 35% stake in Juul late last year, making a huge bet on the e-cigarette company. Altria shares are down nearly 18% this year.
Crosthwaite will continue "a broad review of the company's practices and policies to ensure that it is aligned with its goal of responsible industry leadership," Jul says in a press release.
The company announced Wednesday that it will suspend all advertisements for broadcast, print and digital products in the United States. It will not lobby the Trump administration for its upcoming policy to remove flavored e-cigarettes from the market and will comply with the final policy when effective.
Crosthwaite serves as Chief Growth Officer of Altria, where he oversees the company's expansion into heated tobacco products. He directs Altria's work in introducing its flagship product, iQOS, to the FDA for review, and successfully clears it for sale in the US July, and all e-cigarette manufacturers will have to subject their devices to the same FDA review process next spring.
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