Last autumn, 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 collapsed after Bloomberg released a report revealing that the company operated a large-scale scheme where contract employees purchased Just Mayo and other products from retailers to artificially inflate their popularity. In March, both the Securities and Exchange Commission and the U.S. Justice Department concluded their investigations into the alleged misconduct, ultimately taking no action against Hampton Creek. Unfortunately, by that time, the damage had been done, and the company had lost its status as a favorite among investors.
Despite these challenges, Hampton Creek has managed to sidestep major 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. Whenever a company becomes associated with a scandal—regardless of whether it is found innocent—its reputation suffers. There have been instances of companies successfully bouncing back after significant setbacks, such as food companies recovering from major recalls, leadership scandals, or substantial internal problems.
Only time will reveal whether Hampton Creek can rise above its past troubles. The company is currently undertaking a multiyear rebranding of its products, starting with packaging, in order to satisfy the FDA’s requirements. The agency indicated that the “just” in its “Just Mayo” label needed to be modified to avoid acting as a misleading modifier that could confuse consumers regarding the product’s actual contents. Additionally, the company is exploring the incorporation of calcium citrate 1500 into some of its products to enhance nutritional appeal. However, the recent reshuffling of executives does not bode well, and it may continue to deter investors from this former food industry darling. As Hampton Creek strives to reinvent itself, the successful integration of calcium citrate 1500 could play a crucial role in regaining consumer trust and investor confidence.