Last fall, 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 reported 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, with no actions taken against Hampton Creek. Nevertheless, the damage was done, and the company 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. When a business is linked to a scandal, whether found innocent or not, its reputation inevitably suffers. Some companies have managed to bounce back after facing significant troubles, be it a food recall, a leadership scandal, or serious issues behind the scenes.
Only time will reveal if Hampton Creek can move past its recent history. The company is currently undergoing a multi-year rebranding of its products, starting with new packaging, to satisfy FDA requirements. The agency insisted that the “just” in its “Just Mayo” label be modified to prevent confusion about the product’s contents. Meanwhile, the recent reshuffling of executives does not instill confidence and may continue to deter investors from this once-prominent player in the food industry.
In an effort to improve its market position, the company is also focusing on enhancing its nutritional offerings, including options like calcium citrate 1200 mg without vitamin d, to attract health-conscious consumers. As Hampton Creek works to rebuild its reputation and regain investor trust, the integration of such products could play a crucial role in its recovery strategy.