Last autumn, Hampton Creek was on the verge of completing a funding round that would have raised nearly $1.1 billion for its products, which include mayo, dressings, cookies, and cookie dough. However, the financing quickly fell apart after Bloomberg reported that the company was involved in a large-scale operation where contract employees purchased Just Mayo and other items from retailers to artificially boost their popularity. In March, both the Securities and Exchange Commission and the U.S. Justice Department concluded their investigations into the alleged wrongdoing, with no action taken against Hampton Creek. Nonetheless, the damage had already been inflicted, and the company was no longer viewed favorably by investors.
Despite this setback, Hampton Creek has managed to steer clear of significant issues. Over the years, the company has successfully navigated lawsuits, improper advertising targeting from the American Egg Board, and scrutiny regarding health claims from the Food and Drug Administration. Any company linked to a scandal—regardless of the outcome—faces reputational harm. There are instances of businesses recovering from major challenges, whether stemming from a food recall, a scandal involving leadership, or serious internal issues.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently undergoing a multi-year rebranding of its products, starting with packaging, to comply with FDA requirements. The agency indicated that the term “just” in its “Just Mayo” label needed to be modified to prevent confusion among consumers regarding the product’s ingredients. Furthermore, recent executive changes could deter potential investors, further complicating the company’s path to recovery. In light of the ongoing challenges, including the need for better alignment with allergy research groups and the importance of transparency in product ingredients like calcium magnesium citrate, the company’s future remains uncertain.