Top US e-cigarette manufacturer Juul is replacing its CEO and suspending all lobying and advertising amid a backlash against its products
(Robyn Beck)

Washington (AFP) – A tobacco industry veteran will replace the current CEO of Juul, the top US e-cigarette manufacturer, as the company suspends all lobbying and advertising and responds to a mounting public backlash against its main products.

Also on Wednesday, Altria Group, a major Juul stakeholder, said it had ended merger talks with Philip Morris International, scuttling a potential tie up between the world’s two largest tobacco makers.

Kevin Burns, co-founder of the San Francisco-based Juul, which had seen a meteoric rise in recent years, will be replaced by K.C. Crosthwaite, a top Altria executive.

With at least nine dead of causes potentially tied to vaping, e-cigarettes face heightened scrutiny in the United States and a potential ban on most flavored vaping products.

As traditional tobacco sales decline, the technology had offered old-guard cigarette manufacturers hope of transitioning into a new market.

A month ago, Altria and Philip Morris International announced merger talks, potentially allowing the two companies to diversify into a shifting consumer market.

But in a statement, Altria said efforts to reach an agreement to forge a $200 billion combined entity had failed.

“While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach agreement,” Altria Chairman Howard Willard said in a statement.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.