After a decline in fortunes, Hampton Creek was on the verge of finalizing a funding round that could have brought in nearly $1.1 billion for its products, including mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly fell apart following a Bloomberg report revealing that the company was engaged in a large-scale operation where contract employees purchased Just Mayo and other items from retailers to artificially boost their popularity. In March, the Securities and Exchange Commission and the U.S. Justice Department concluded their investigation into alleged improprieties without taking any action against Hampton Creek. Nonetheless, the damage to the company’s reputation was significant, and it lost its status as a favorite among investors.
Despite these challenges, Hampton Creek has managed to navigate through various issues, including lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration. The journey of any company involved in a scandal—regardless of whether it is exonerated—often leads to reputational harm. There are instances of companies bouncing back after facing significant challenges, whether through a major recall or internal leadership crises. Only time will reveal if Hampton Creek can overcome its tumultuous past.
Currently, the company is embarking on a multi-year rebranding journey for its products, starting with its packaging, to align with the FDA’s requirements. The agency indicated that the “just” in “Just Mayo” needed modification to prevent it from misleading consumers about the product’s contents. However, recent executive changes raise concerns and may deter investors from re-engaging with this once-beloved player in the food industry. As Hampton Creek continues its journey to restore its reputation and regain investor confidence, it remains to be seen if its efforts will bear fruit in the long term.