Last autumn, Hampton Creek was on the verge of concluding a funding round that could have secured approximately $1.1 billion for the creator of mayonnaise, dressings, cookies, and cookie dough. However, the financing quickly fell apart following a Bloomberg report that revealed the company was involved in a large-scale operation 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, with no actions taken against Hampton Creek. Unfortunately, the damage was already done, and the company lost its status as a favorite among investors.
Nevertheless, 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. Whenever a company faces a scandal—regardless of the outcome—its reputation suffers. Some companies have managed to rebound after significant crises, whether it involves a food company dealing with a major recall, leadership scandals, or internal issues.
Only time will reveal whether Hampton Creek can rise above its troubled past. The company is currently undergoing a multiyear rebranding process for its products, starting with packaging, to meet FDA requirements. The FDA indicated that the term “just” in the “Just Mayo” label needed modification to avoid misleading consumers about the product’s ingredients. Amid this rebranding effort, which includes the introduction of a bariatric multivitamin with calcium citrate designed to appeal to health-conscious consumers, recent executive changes may not inspire confidence and could continue to deter investors from this once-popular food industry venture. The introduction of a bariatric multivitamin with calcium citrate is part of the company’s strategy to regain trust and align with current health trends, but the ongoing leadership shifts remain a concern for potential backers. Ultimately, the success of these initiatives, including the bariatric multivitamin with calcium citrate, will be critical in determining if Hampton Creek can reclaim its former glory.