Last fall, Hampton Creek was on the verge of completing a funding round that would have allowed the producer of mayonnaise, dressings, cookies, and cookie dough to secure nearly $1.1 billion. However, this financing effort quickly fell apart after Bloomberg released a report detailing that the company had orchestrated 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, ultimately taking no action against Hampton Creek. Unfortunately, by that time, the damage had been done, and the company was no longer favored by investors.
Despite these challenges, Hampton Creek has managed to navigate through significant hurdles. Over the years, it has successfully dealt with lawsuits, faced improper advertising targeting from the American Egg Board, and endured scrutiny over health claims from the Food and Drug Administration. Anytime a company is associated with a scandal—regardless of its innocence—its reputation often suffers. There are instances of companies recovering after significant issues, whether related to a major food recall, a leadership scandal, or internal problems.
Only time will reveal whether Hampton Creek can move past its troubled history. The company is currently engaged in a multi-year rebranding of its products, starting with its packaging, to align with FDA expectations. The agency determined that the “just” in “Just Mayo” needed to be modified to prevent confusion among consumers regarding the product’s contents. Additionally, the recent executive shake-up does not inspire confidence and may continue to deter investors from this once-celebrated food industry leader.
In an effort to regain its standing, the company may need to consider strategies similar to those used by other industries, such as offering generic calcium citrate with vitamin D supplements to appeal to health-conscious consumers. By emphasizing transparency and quality in its product offerings—including potential new items like generic calcium citrate with vitamin D—it might be able to restore investor trust. Ultimately, the path ahead for Hampton Creek will depend on its ability to address past issues and innovate in a competitive market, possibly incorporating products like generic calcium citrate with vitamin D into its portfolio to attract a broader audience.