Posts Tagged ‘Hampton Creek’

Unilever Drops Mayo Lawsuit Giving Hampton Creek Another PR Boost

You almost have to feel sorry for Big Mayo. After getting slammed with negative press last month for its ill-conceived lawsuit against Hampton Creek, Unilever raised the white flag by dropping the case. But instead of burying the news late on a Friday, the company put out its release at 6pm on Thursday, at the end of what was a huge news day for Hampton Creek. The San Francisco start-up announced an additional $90 million in investment capital, a strong indicator that the lawsuit actually attracted more investors instead of scaring them off.

A Google news search this morning for Hampton Creek reveals about 200 news stories, a mix of coverage for its fundraising success and the lawsuit being dropped. In other words, Unilever gave reporters an additional angle to shine a positive light on Hampton Creek and keep the media coverage going from yesterday into today. (My favorite headline is from CNN Money: “Unilever lays an egg: Drops Just Mayo lawsuit”.)

But what most media outlets ignored was how unprecedented it is for the party filing a lawsuit like this to simply drop it, without getting anything in return, and before any court hearings. It’s clear that Unilever realized its mistake and just wanted the whole thing to go away, and just in time for the holidays. It’s a fitting end to a colossal PR blunder. As the Los Angeles Times put it: “The mayo war was over before it even began.”

Hey Unilever, is it mayonnaise or mayonnaise dressing?

canola oil Hellmanns

<strong>Canola</strong> Cholesterol Free Mayonnaise Dressing

 

The image on the left is a picture taken by Josh Tetrick, CEO of Hampton Creek, at a Safeway in San Francisco on Sunday, November 16. It shows the Best Foods Canola Cholesterol Free variety labeled “mayonnaise.” However on the Best Foods website is the image on the right, which has the same product labeled “mayonnaise dressing”. According to federal law, to be called “mayonnaise” the product must contain at least 65 percent oil by weight, which this product does not. For more details on mayogate see my post from yesterday.

Mayogate: Unilever Doctoring Customer Reviews

Big Mayo scrubbing Hellmann’s website to cover up deception after filing lawsuit against Hampton Creek

Hellmann's Page

Screen shots of Hellmann’s promotion showing altered customer reviews. (Click for larger resolution.)

Last week I wrote about the negative PR backlash against global giant Unilever for its desperate lawsuit against Hampton Creek over Just Mayo, a new product made without eggs that is quickly stealing market share from twin brands Hellmann’s and Best Foods, the market leaders. Most corporations shy away from filing these sorts of competitor lawsuits and Unilever is about to find out why.

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Unilever’s Bullying Backfires, Boosts Hampton Creek

Negative media coverage of Big Mayo lawsuit goes viral in case study of PR blunder

All of these images were used in recent media stories of Big Mayo lawsuit

Business schools love a good case study, especially when a big corporation blows it. Now they can add Unilever’s colossal public relations mistake to their list. Wall Street Journal tech columnist Christopher Mims summed it up with this tweet: “Giant Corporation Generates Huge Quantities of Free Advertising and Brand Equity For Tiny Rival by Suing It”.

As I predicted earlier this week in my post about the maker of Hellmann’s suing start-up Hampton Creek over egg-free mayonnaise, the press and social media firestorm in just the past few days has already given Unilever a black eye, while the Just Mayo brand enjoys free positive PR. Almost all of the stories (of more than 200) I saw online were in Hampton Creek’s favor, framing the lawsuit as a classic David versus Goliath fight, at times mocking Unilever.

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