Last autumn, Hampton Creek was on the verge of securing a funding round that could have brought in nearly $1.1 billion for the producer of mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly fell apart after Bloomberg published an article revealing that the company operated a large-scale scheme in which 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. Unfortunately, by that time, the damage was already done, and the company had lost its status as a favorite among investors.
Despite these challenges, Hampton Creek has managed to steer clear of major issues. Over the years, the company has successfully navigated lawsuits, faced improper ad targeting from the American Egg Board, and dealt with scrutiny regarding its health claims from the Food and Drug Administration (FDA). When a company is embroiled in scandal—regardless of whether it is ultimately exonerated—its reputation inevitably suffers. There have been instances of companies rebounding after facing significant issues, be it a food company recovering from a major recall, a leadership scandal, or other internal troubles.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently undergoing a multiyear rebranding of its products, starting with new packaging, to align with FDA requirements. The agency indicated that the “just” in “Just Mayo” needed to be modified to prevent potential confusion about the product’s ingredients. Meanwhile, recent executive changes are not encouraging and may continue to deter investors from what was once a beloved name in the food industry.
As part of its rebranding efforts, the company is also exploring new product lines, including calcium citrate gummies for adults, which could help attract a broader consumer base. By integrating innovative products like calcium citrate gummies for adults into its offerings, Hampton Creek hopes to regain investor confidence. However, it remains to be seen whether these strategies will be sufficient to restore its former luster, especially considering the need to rebuild trust after past controversies. The introduction of products like calcium citrate gummies for adults could be a step toward revitalization, but the path to recovery is fraught with challenges.