Two sources told Bloomberg that Hampton Creek, producer of the eggless “Just Mayo,” is losing $4 million a month and could run out of money in six months absent additional funding. The company has experienced months of infighting over control of the start-up and the role of co-founder Joshua Tetrick.
A company spokesman says Hampton Creek “has solid strategic and financial support from major investors across the world,” with additional capital available if needed. Four of the company’s five board members resigned last month, the exception being Tetrick. “It’s reasonable that employees, investors, suppliers, and creditors be concerned for the company’s future, which portends to be dramatic,” David Larcker, director of Stanford University’s Corporate Governance Research Initiative, told Bloomberg.
“The empty boardroom is the latest twist for a company that promised to pioneer the future of food but is now facing an uncertain future itself,” said Bloomberg. Tetrick has raised $220 million over six years for the venture, which plans to market plant-based foods that replace animal protein. Bloomberg says there were recent disputes about whether to increase funding for lab-grown meat, favored by Tetrick, or to provide money for egg-replacement products, an initiative that attracted investor funding two years ago.