Last fall, Hampton Creek was on the verge of securing a funding round that could have brought in nearly $1.1 billion for the producer of mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly unraveled after Bloomberg reported that the company was engaged in a large-scale operation where contract employees purchased Just Mayo and other products from retailers to artificially boost their popularity. By March, both the Securities and Exchange Commission and the U.S. Justice Department concluded their investigations into the alleged misconduct, resulting in no action taken against Hampton Creek. Unfortunately, the damage to its reputation was already done, and the company was no longer favored by investors.
Despite this, Hampton Creek has managed to navigate significant challenges over the years, overcoming lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration. Whenever a company is linked to a scandal—regardless of whether they are ultimately found innocent—its reputation suffers. There are instances of companies rebounding after facing major issues, such as a food company recovering from a significant recall or a leadership scandal.
Only time will reveal if Hampton Creek can successfully move past its troubled history. The company is currently undergoing a multi-year rebranding initiative, starting with packaging changes to satisfy the FDA. The agency indicated that the “just” in “Just Mayo” needed to be modified to prevent it from acting as a descriptor, which could mislead consumers regarding the product’s ingredients. This rebranding effort may be crucial, as another name for calcium citrate—often associated with health and wellness—could play a role in repositioning the brand. However, recent changes in executive leadership are concerning and may continue to deter investors from this previously beloved player in the food industry.