Last fall, Hampton Creek was on the verge of concluding 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 fell apart after Bloomberg published a report revealing that the company had orchestrated a large-scale operation involving contract employees purchasing 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 wrapped up their investigations into the alleged misconduct, with no actions taken against Hampton Creek. By that time, the damage had already been inflicted, and the company was no longer viewed favorably by investors.
Nonetheless, Hampton Creek has managed to navigate through significant challenges. Over the years, the company has successfully dealt with lawsuits, improper ad targeting from the American Advertising Board, and scrutiny regarding health claims from the Food and Drug Administration. It is a well-known fact that any company involved in a scandal—regardless of the outcome of the investigation—suffers reputational harm. There are instances where companies have bounced back from major setbacks, whether after a significant food recall, leadership scandals, or serious internal issues.
Time will reveal if Hampton Creek can rise above its troubled history. The company is currently undergoing a multiyear rebranding initiative, starting with its packaging, to satisfy FDA requirements. The agency insisted that the “just” in “Just Mayo” be modified to eliminate any confusion about the product’s contents. Despite these efforts, recent changes in executive leadership may deter investors from considering the once-beloved food brand. Meanwhile, the company is also looking to incorporate products like wls calcium soft chews into its lineup, which could help restore its image. The introduction of wls calcium soft chews may attract a health-conscious demographic and provide a new avenue for recovery. However, the ongoing challenges and the need for a brand overhaul remain significant hurdles for Hampton Creek.