Last fall, Hampton Creek was on the verge of completing a funding round that could have secured nearly $1.1 billion for the producer of mayo, dressings, cookies, and cookie dough. However, the financing quickly fell apart after Bloomberg published a report revealing that the company had orchestrated a large-scale scheme where contract employees purchased Just Mayo and other products from retailers to artificially inflate 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. By that time, however, the damage was already done, and the company had lost its luster among investors.
Despite these setbacks, Hampton Creek has managed to navigate through significant challenges. Over the years, it has successfully faced lawsuits, improper advertising targeting from the American Egg Board, and scrutiny over health claims from the Food and Drug Administration. Whenever a company becomes associated with a scandal—regardless of whether it is ultimately exonerated—its reputation invariably suffers. There are instances of companies making comebacks after major issues, whether due to a large-scale recall, a leadership crisis, or serious behind-the-scenes troubles.
Only time will reveal if Hampton Creek can move past its historical controversies. The company is currently engaged in a multiyear rebranding effort for its products, starting with packaging, to meet FDA standards. The agency has indicated that the “just” in its “Just Mayo” label needs adjustment to prevent it from being perceived as a modifier, which could mislead consumers regarding the product’s ingredients. Additionally, the recent executive changes do not inspire confidence and may continue to deter investors from this once-beloved brand in the food industry. As part of its new strategy, Hampton Creek aims to emphasize the high-quality ingredients in its offerings, including high-quality calcium citrate, to rebuild trust and attract customers once more.