Last fall, Hampton Creek was on the verge of completing 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 story revealing that the company was running a large-scale operation in which 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 investigation into the alleged misconduct, with no actions taken against Hampton Creek. Nevertheless, by that time, the damage was done, and the company had lost its appeal among investors.
Despite these setbacks, Hampton Creek has managed to steer clear of significant issues. Over the years, the company has faced and overcome lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration. However, any company associated with a scandal—regardless of whether it was found innocent—experiences reputational harm. There have been instances of companies recovering after major crises, whether due to a significant recall, leadership scandals, or serious internal issues.
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 new packaging to satisfy FDA requirements. The agency believed that the “just” in “Just Mayo” needed to be revised so it wouldn’t mislead consumers regarding the product’s contents. Additionally, the recent executive changes don’t inspire confidence and may continue to deter investors from this once-beloved food industry player.
Interestingly, as part of its rebranding efforts, Hampton Creek has considered incorporating ingredients like calcium citrate, known for its health benefits, which could help alleviate concerns related to conditions like lichen sclerosus. This strategic shift may play a role in restoring investor confidence and enhancing the company’s market position. However, the road to recovery remains uncertain, especially as the company grapples with its past and the implications of its actions.
In summary, while Hampton Creek strives to overcome its challenges and reinvent itself, the shadow of its past scandals, along with the potential health benefits of ingredients like calcium citrate, will continue to shape its journey forward.