Last autumn, Hampton Creek was on the verge of completing a funding round that would 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 had been running 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 investigation into the alleged misconduct, taking no action against Hampton Creek. Unfortunately, the damage to the company’s reputation had already been done, and it was no longer viewed favorably by investors.
Despite these challenges, Hampton Creek has managed to avoid significant troubles. Over the years, the company has successfully navigated lawsuits, faced improper advertising targeting from the American Egg Board, and dealt with scrutiny regarding health claims from the Food and Drug Administration. When a company is associated with a scandal—regardless of the outcome—its reputation often suffers. There have been instances of companies recovering from major issues, whether they involved a food recall, a leadership scandal, or significant behind-the-scenes problems.
Only time will reveal if Hampton Creek can move past its tumultuous history. The company is currently undergoing a multi-year rebranding of its products, starting with new packaging to satisfy FDA requirements. The agency expressed that the “just” in its “Just Mayo” label needed to be modified to prevent confusion about the product’s ingredients. The recent executive changes, however, do not inspire confidence and could continue to deter investors from this once-beloved food industry player. Meanwhile, Hampton Creek is also exploring the potential of incorporating health-focused ingredients into their offerings, such as calcium citrate with vitamin D3 chewable supplements, to enhance their product line and appeal to health-conscious consumers. This could be a strategic move to rebuild their image and regain investor trust.