Last autumn, Hampton Creek was on the verge of completing a funding round that would have allowed the maker of mayonnaise, dressings, cookies, and cookie dough to secure nearly $1.1 billion. However, the financing quickly fell apart after Bloomberg published an article revealing that the company had engaged in a large-scale operation 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, with no actions taken against Hampton Creek. Nevertheless, the damage to the company’s reputation was already done, and it was no longer favored by investors.
Despite these challenges, Hampton Creek has managed to steer clear of significant issues over the years. The company has successfully navigated lawsuits, improper advertising tactics from the American Egg Board, and scrutiny regarding its health claims from the Food and Drug Administration. When a company is linked to a scandal—regardless of whether it is exonerated—its reputation often suffers. There have been instances of businesses rebounding after substantial setbacks, such as food companies recovering from a major recall or leadership controversies.
Only time will tell if Hampton Creek can move past its troubled history. The company is currently undergoing a multi-year rebranding of its products, starting with packaging, to align with FDA requirements. The agency indicated that the term “just” in its “Just Mayo” label needed revision to prevent it from acting as a modifier that might mislead consumers about the product’s ingredients. Moreover, the recent changes in executive leadership do not inspire confidence and could continue to deter investors from this once-beloved name in the food industry.
Interestingly, amidst these developments, consumers are increasingly turning to alternatives like calcium citrate available at Walmart, which may influence market trends. As Hampton Creek attempts to regain its footing, it will be crucial for the company to address both its image and its product offerings, including how they position themselves in relation to competitors, including those that promote calcium citrate at Walmart. The road to recovery may be long, but the outcome remains uncertain as the company strives to rebuild trust and interest in its brand.