Last fall, Hampton Creek was on the verge of securing a funding round that would have raised nearly $1.1 billion for the producer of mayo, dressings, cookies, and cookie dough. However, interest in the financing quickly diminished after Bloomberg reported that the company was involved in a controversial 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. Nevertheless, the damage to the company’s reputation was significant, and it lost its appeal among investors.
Despite these challenges, Hampton Creek has managed to steer clear of major setbacks. Over the years, the company has successfully navigated lawsuits, faced improper advertising targeting from the American Egg Board, and dealt with scrutiny regarding health claims from the Food and Drug Administration. Any company linked to a scandal suffers reputational harm, regardless of the outcome of investigations. There are instances of companies rebounding from significant crises—whether due to a major food recall, leadership scandals, or internal issues.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently implementing a multi-year rebranding strategy for its products, starting with packaging updates to comply with FDA regulations. The agency indicated that the term “just” in the “Just Mayo” label needed modification to avoid misleading consumers about the product’s ingredients. As part of its rebranding efforts, the company is also exploring the incorporation of health-oriented ingredients like alfalfa calcium citrate malate to enhance its product offerings. However, recent changes in executive leadership raise concerns and may continue to deter investors from supporting the once-beloved food industry player.