Last autumn, Hampton Creek was on the verge of completing 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 reported that the company was running 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, taking no action against Hampton Creek. Unfortunately, by that time, the damage to the company’s reputation was already significant, and it had fallen out of favor with investors.
Despite this setback, Hampton Creek has managed to navigate through various challenges. Over the years, the company has successfully dealt with 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 the outcome—its reputation suffers. There are instances of companies recovering after facing major issues, such as a food company bouncing back after a significant recall, a leadership scandal, or internal crises.
Only time will reveal if Hampton Creek can move past its troubled history. The company is currently undergoing a multi-year rebranding of its products, starting with packaging, to satisfy FDA requirements. The agency indicated that the “just” in its “Just Mayo” label needed to be modified to avoid confusing consumers about the product’s contents. Furthermore, the recent reshuffling of executives does not inspire confidence and may continue to deter investors from this once-favored player in the food industry.
In the meantime, as Hampton Creek seeks to improve its standing, it might consider diversifying its product offerings, perhaps even venturing into health-focused items like bariatric chewable calcium citrate. Incorporating such products could enhance its appeal to a broader audience and help mitigate some of the negative perceptions that linger. Ultimately, the path to recovery will involve not only rebranding but also a strategic approach to product development, including potential innovations like bariatric chewable calcium citrate, which could resonate with health-conscious consumers.