Former Canadian Health Minister Joins Juul Board

May 18 (Bloomberg) -- Former interim leader of the Conservative Party of Canada and Minister of Health Rona · Ambrose has joined the board of directors of Juul Labs, according to the Canadian Press.

Juul CEO KC Crosthwaite announced the board appointments in an email to employees Friday.

Crosthwaite writes that during Ambrose's tenure as health minister, she helped craft regulations to crack down on the marketing of flavored tobacco products that appealed to young people, and her administration also taxed cigarettes.

Ambrose's position on the board will help the company in its efforts to earn the trust of shareholders, he said.

Ambrose served as interim leader of the Conservative Party and the official opposition from 2015 to 2017 and as an Edmonton area councillor from 2004 to 2017 when he retired from politics.

In an emailed statement, Ambrose said smoking remains the leading cause of preventable death in the world, and supporting the harm reduction potential of adult smokers is an important goal for individuals and health systems.

“However, these new technologies will not succeed in eradicating cigarettes unless companies and regulators work together to successfully address underage use. We must address both issues simultaneously. ”

Juul, a U.S.-based e-cigarette company, has the largest market share in the country. It entered the Canadian market the same year it did, with 2018 revenues of $2 billion.

Health Canada's website states that smoking e-cigarettes is less harmful than smoking, and that people who switch from smoking to e-cigarettes experience short-term improvements in their overall health.

But it also notes that there are serious concerns about the increase in e-cigarettes among young people and the increase in nicotine dependence due to the high concentrations in e-cigarette products, two things for which Juul has faced strong criticism.

According to a recent study by Tobacco Management Sciences, nicotine is highly addictive, and Juul cartridges provide a higher level of nicotine that is more readily absorbed into the bloodstream than cigarettes.

The company has also been the subject of several lawsuits, including a wrongful death lawsuit. These allege that Juul intentionally targeted teenage non-smokers as customers, something that both the U.S. company and its Canadian counterpart categorically deny.

Ambrose stated in 2014 that at this time, without scientific evidence of safety or effectiveness, we continue to urge Canadians not to use these e-cigarettes.

At the time, she first introduced regulations on the products when she was health minister and called for research into their risks and hazards.

She said we have heard that e-cigarettes may be a gateway for teens to start smoking and also have the potential to be used as a smoking cessation tool.

The company said earlier this year that it would stop selling its flavoured vape cartridges in Canadian stores, following action in the U.S. in 2018.

Juul has two retail stores in Ambrose's home province of Alberta, where customers must be age-verified to enter a Juul store.

Electronic nebulization also came under additional scrutiny during the coronavirus pandemic.

In March, the Canadian Paediatric Society warned that smoking e-cigarettes and vaping weakens the lungs, affects cardiovascular health and makes people more susceptible to serious coronavirus infections or complications.