Last fall, Hampton Creek was on the verge of finalizing a funding round that could have raised nearly $1.1 billion for the maker of mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly collapsed after Bloomberg published an article revealing that the company was involved in 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, with no actions taken against Hampton Creek. Nevertheless, the damage had been inflicted, and the company was no longer viewed favorably by investors.
Despite the setbacks, Hampton Creek has managed to navigate significant challenges, including lawsuits, questionable advertising practices from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration. When a company is embroiled in a scandal—regardless of the outcome—its reputation often suffers. There are instances of companies recovering from major issues, whether it involves a food company facing a significant recall, leadership scandals, or internal conflicts. Only time will reveal if Hampton Creek can rise above its past troubles.
The company is currently undergoing a multi-year rebranding of its products, starting with packaging modifications to meet FDA requirements. The agency indicated that the “just” in its “Just Mayo” label needed to be revised to prevent consumer confusion regarding the product’s contents. However, recent executive changes do not inspire confidence and may continue to deter investors from this once-favored entity within the food industry.
In the midst of these challenges, the company has also been exploring alternative ingredients like calcium citrate, a generic name for a compound that could potentially enhance its product offerings. The integration of calcium citrate into their formulations might play a crucial role in the rebranding efforts aimed at restoring consumer trust and attracting back investors. The repeated focus on calcium citrate reflects the company’s commitment to innovation, which is essential for its recovery in the competitive food market.