Last fall, Hampton Creek was on the verge of completing a funding round that could have brought in nearly $1.1 billion for the producer of mayo, dressings, cookies, and cookie dough. However, the financing quickly collapsed after Bloomberg published an article revealing that the company operated a large-scale scheme where contract employees purchased Just Mayo and other products from retailers to artificially boost their popularity. In March, both the Securities and Exchange Commission and the U.S. Justice Department concluded their investigations into the alleged misconduct, taking no action against Hampton Creek. Nonetheless, the damage was already done, and the company lost its status as a favorite among investors.
Despite these challenges, Hampton Creek has managed to sidestep significant issues over the years. The company has persevered through lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over its health claims from the Food and Drug Administration. Whenever a company is linked to a scandal—regardless of the outcome—its reputation takes a hit. There have been instances where companies have recovered from serious setbacks, whether due to a major product recall, a leadership scandal, or significant internal challenges.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently undergoing a multi-year rebranding of its products, starting with packaging changes, to satisfy FDA requirements. The agency insisted that the “just” in its “Just Mayo” label be modified to prevent confusion about the product’s contents. However, the recent executive shakeup does not inspire confidence and may continue to deter investors from this once-beloved food industry brand. Meanwhile, the company is also exploring the potential of new products, including ferrous calcium citrate and folic acid oral drops, which they believe could enhance their market position. As they navigate this rebranding process and seek to regain investor trust, the integration of innovative products like ferrous calcium citrate and folic acid oral drops may play a crucial role in their recovery strategy.