Dive Brief:
- Unilever, maker of the Hellmann's brand, has withdrawn its lawsuit against Hampton Creek, parent of the vegan mayonnaise brand Just Mayo.
- The lawsuit proved a public relations disaster, as consumers heaped scorn on the company for what they viewed as a frivolous lawsuit. Things got worse when Unilever was caught changing the definitions of its own products on its website because they, too, didn't meet the standard that Unilever wanted a court to enforce.
- In filing for the dismissal, Unilever suggests it still has a problem with Just Mayo being called mayo, and said it expects Hampton Creek will "address its label directly with industry groups and appropriate regulatory authorities."
Dive Insight:
It's been clear from the start of this case that Unilever had stumbled. This was a perfect example of what can go wrong when you don't think things through, may not necessarily understand social media, and turn to lawyers, rather than consumers, to build a brand.
Meanwhile, Hampton Creek said it has received $90 million in its Series C financing round, now totaling at $120 million. While Horizons Ventures and Khosla Ventures have invested before (and did so again), Eduardo Saverin - Facebook's co-founder - and Marc Benioff, Salesforce founder and CEO, are new backers. This is for sure a company we're going to watch heading into 2015.