Last fall, Hampton Creek was on the verge of wrapping up a funding round that would have allowed the producer of mayo, dressings, cookies, and cookie dough to secure nearly $1.1 billion. However, the financing quickly fell apart after Bloomberg revealed that the company was engaged in a large-scale operation where contract employees purchased Just Mayo and other products from retailers to boost 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. Nevertheless, by that time, the company had already faced significant reputational damage and was no longer favored by investors.
Despite this, Hampton Creek has managed to navigate through various challenges over the years, including lawsuits, improper advertising practices from the American Egg Board, and scrutiny regarding health claims from the Food and Drug Administration. Whenever a company is linked to a scandal—regardless of whether it’s ultimately cleared of wrongdoing—its reputation suffers. While some companies have successfully recovered from major issues, such as recalls or leadership crises, only time will reveal if Hampton Creek can put its past behind it.
The company is currently in the midst of a multi-year rebranding effort, starting with its packaging, to align better with FDA guidelines. The agency indicated that the “just” in “Just Mayo” needed modification to avoid confusing consumers about the product’s contents. Additionally, the recent changes in executive leadership do not inspire confidence and may continue to deter investors from what was once a beloved name in the food industry. As part of its reform, the company is also exploring new formulations that could include ingredients like calcium citrate or calcium to enhance nutritional value, which may help regain consumer trust. However, whether these efforts will be enough to restore its standing remains uncertain.