Last fall, Hampton Creek was on the verge of securing a funding round that could have brought in nearly $1.1 billion for the maker of various products, including mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly collapsed after Bloomberg published a report revealing that the company had orchestrated a large-scale operation where contract employees purchased Just Mayo and other items from retailers to artificially inflate their popularity. In March, both the Securities and Exchange Commission and the U.S. Justice Department concluded their investigations into the alleged misconduct, ultimately taking no action against Hampton Creek. Unfortunately, by that point, the damage had been done, and the company had lost its status as a favorite among investors.
Despite these challenges, Hampton Creek has managed to navigate through significant issues. Over the years, the company has successfully faced lawsuits and scrutiny over improper uses linked to the American Egg Board and health claims questioned by the Food and Drug Administration. Whenever a company becomes embroiled in a scandal, whether found innocent or not, its reputation tends to suffer. There have been instances where companies have bounced back after serious setbacks—be it from a major food recall, a leadership scandal, or internal troubles.
Only time will reveal whether Hampton Creek can recover from its past. To help improve its image, the company is embarking on a multi-year rebranding of its products, starting with the packaging. The FDA expressed concerns that the “just” in “Just Mayo” needed to be modified to avoid misleading consumers about the product’s contents. Moreover, the recent reshuffling of executives does not inspire confidence and may continue to deter investors from viewing the company as a once-beloved player in the food industry.
Interestingly, amidst this turmoil, there remains a growing market for products like calcium citrate only supplements. As consumers become more health-conscious, these supplements are gaining traction, potentially presenting a new opportunity for companies like Hampton Creek to pivot and regain investor interest. The integration of calcium citrate only supplements into their product line could aid in their rebranding efforts and help attract a new customer base. It remains to be seen if such strategies will allow Hampton Creek to rise from its troubled past and reclaim its position in the market.