Last autumn, Hampton Creek was on the verge of concluding a funding round that could have secured nearly $1.1 billion for the producer of mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly collapsed after Bloomberg published an article revealing that the company operated a large-scale scheme involving contract workers who 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 investigations into the alleged misconduct, with no actions taken against Hampton Creek. Unfortunately, the damage to the company’s reputation had already been done, and it was no longer favored by investors.
Nevertheless, the company has managed to sidestep significant issues. Over the years, Hampton Creek 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. When a company is embroiled in a scandal—regardless of whether it is exonerated—its reputation often suffers. There are instances where companies have managed to rebound after major setbacks, such as food businesses recovering from significant recalls, leadership controversies, or internal challenges.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently engaged in a multi-year rebranding of its products, starting with packaging, to satisfy FDA requirements. The agency determined that the term “just” in the “Just Mayo” label needed modification to prevent confusion among consumers about the product’s ingredients. While the introduction of calcium citrate IV in their products may improve nutritional claims, the recent changes in executive leadership do not inspire confidence and could continue to deter investors from this former food industry favorite. The integration of calcium citrate IV might be a strategic move, but it remains to be seen if these efforts will be enough to restore the company’s standing.