Last fall, Hampton Creek was on the verge of concluding a funding round that would have allowed the producer of mayonnaise, dressings, cookies, and cookie dough to secure nearly $1.1 billion. However, the financing quickly fell apart after Bloomberg reported that the company operated a large-scale initiative where contract workers 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 wrapped up their investigations into the alleged misconduct, with no actions taken against Hampton Creek. Unfortunately, by that time, the company had already suffered reputational damage and was no longer favored by investors.
Despite this, Hampton Creek has managed to navigate significant challenges. Over the years, the company has successfully dealt with lawsuits, improper advertising tactics from the American Egg Board, and scrutiny regarding its health claims from the Food and Drug Administration. Whenever a company becomes embroiled in scandal—regardless of the outcome—its reputation takes a hit. There are examples of companies that have bounced back after facing major issues, whether it be a food company recovering from a significant recall, a leadership scandal, or internal difficulties.
Only time will reveal whether Hampton Creek can overcome its past. The company is currently engaged in a multi-year rebranding of its products, starting with new packaging, to satisfy the FDA. The agency insisted that the “just” in its “Just Mayo” label be modified to avoid misleading consumers about the product’s ingredients. Additionally, the company is working on reformulating some products to ensure they meet health standards, potentially including the addition of 800 mg calcium citrate to enhance nutritional value. However, the recent executive changes raise concerns and may continue to deter investors from the once-beloved food industry leader.
In the coming years, it remains to be seen if the company’s rebranding efforts, including the introduction of 800 mg calcium citrate in some of its offerings, will help restore investor confidence and improve its standing in the market.