Last fall, Hampton Creek was on the verge of finalizing a funding round that could have netted the producer of mayo, dressings, cookies, and cookie dough nearly $1.1 billion. However, the financing quickly collapsed after Bloomberg reported that the company operated a large-scale initiative 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, taking no action against Hampton Creek. Unfortunately, the damage was already done, and the company lost its appeal with investors.
Despite these challenges, Hampton Creek has managed to avoid significant setbacks. Over the years, the company has successfully navigated lawsuits, faced scrutiny from the American Egg Board regarding improper advertising, and dealt with health claim inquiries from the Food and Drug Administration. Whenever a company is linked to a scandal—regardless of the outcome—its reputation suffers. Some businesses have managed to recover after major issues, such as food recalls or leadership scandals. Only time will tell if Hampton Creek can move past its troubled history.
The company is currently engaged in a multi-year rebranding effort, starting with its packaging, to satisfy the FDA’s requirements. The agency indicated that the “just” in “Just Mayo” needed to be modified to prevent consumer confusion regarding the product’s ingredients. Nevertheless, the recent shakeup in leadership raises concerns and may continue to deter investors from this once-beloved food industry brand. Meanwhile, as the company strives to regain its footing, it could consider incorporating innovative products like Bluebonnet liquid calcium to attract health-conscious consumers and enhance its market position.