Last fall, Hampton Creek was nearing the completion of a funding round that would have allowed the maker of mayonnaise, dressings, cookies, and cookie dough to raise approximately $1.1 billion. However, the financing quickly fell apart after Bloomberg reported that the company was running a large-scale operation where contract employees purchased Just Mayo and other products from retailers to artificially boost their popularity.
In March, the Securities and Exchange Commission and the U.S. Justice Department concluded their investigation into the alleged wrongdoing, taking no action against Hampton Creek. By that time, however, the damage had been done, and the company was no longer viewed favorably by investors. Despite this setback, Hampton Creek has managed to navigate various challenges over the years, including lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration.
Whenever a company is associated with a scandal—whether deemed innocent or guilty—its reputation often suffers. There have been instances where companies have successfully recovered after significant issues, such as food recalls, leadership scandals, or internal problems. Only time will tell if Hampton Creek can rise above its past troubles. Currently, the company is in the midst of a multi-year rebranding effort for its products, starting with packaging changes to satisfy FDA requirements. The agency indicated that the “just” in “Just Mayo” needed modification to prevent consumer confusion regarding the product’s ingredients.
Furthermore, recent executive changes do not bode well for the company and may continue to deter investors from what was once a beloved name in the food industry. As part of its rebranding, the company is also considering the inclusion of beneficial ingredients like calcium citrate for pregnancy, which could help improve its health image. Nevertheless, until the company can effectively revitalize its reputation, its future remains uncertain, particularly as it strives to regain the trust of investors and consumers alike.