Dive Brief:
- Hampton Creek will become the exclusive supplier of baking mixes and salad dressings to major foodservice company, Compass Group.
- "With the deal, Compass Group is replacing one of the top-five global consumer-packaged goods companies in the world with Hampton Creek’s dressing, as well as a top-five supplier of bakery products in the U.S. with mixes made by the startup. At the request of Compass Group, Hampton Creek declined to name the incumbent companies," Fortune reported.
- Because Compass works with major distributors like Sysco and US Foods, this deal will give Hampton Creek a presence in more than 85 warehouses. This offers the company placement among distributors that commonly work with restaurants as well, significantly expanding Hampton Creek's reach.
Dive Insight:
In a September interview, Hampton Creek CEO Josh Tetrick told Food Dive that the company was working with "some of the largest foodservice companies in the world," and it appears Compass Group was one of those entities. This announcement also coincides with Hampton Creek's rollout of salad dressings and pancake batter this past summer.
Tetrick called Compass Group "the biggest cog in our machine." "It’s the most important partner for us because of its scale and shared philosophy," he said.
Hampton Creek's partnership with Compass supports the growth of a company that has had an impact on packaged foods and the egg industry. Unilever filed and later dropped a lawsuit against the company, which said the company cannot call its product mayonnaise because it doesn't have eggs in it and was stealing market share.
The FDA sent a warning letter earlier this year on the subject, saying the company cannot call Just Mayo "mayonnaise" because it does not contain eggs. The American Egg Board has also been accused of activities that could compromise the company, and AEB's president has since retired early. The USDA is looking into the AEB.
Hampton Creek recently told the FDA the product should be allowed to keep its name since "mayo" itself isn't a regulated term, according to Business Insider.