This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

This Startup Wants You to Pass the (Eggless) Mayonnaise

Stocks in this article: KRFTULCAGAMZNYHOOWFMSWYKRCOST

NEW YORK (TheStreet) -- Hampton Creek -- a small, privately owned startup whose backers include Bill Gates -- is trying to shake up the $11.9 billion global mayonnaise industry that's dominated by Kraft Foods (KFT) and Unilever (UL) in the U.S. 

Founded in 2011 by entrepreneur Josh Tetrick, Hampton Creek has created a mayonnaise product that doesn't include eggs. Instead the product -- "Just Mayo" -- relies on a formula that uses plants and other natural ingredients. 

The eggless mayonnaise is being sold in more than 4,000 stores, including Whole Foods Market (WFM), Safeway (SWY), Kroger (KR) and Costco (COST). Hampton Creek's products are also sold by small natural-food retailers and are being offered by Amazon's (AMZN) food-delivery service which is being tested on the West Coast.

The mayonnaise is also being sold overseas. Hampton Creek recently expanded into Hong Kong's leading grocery store, Park n Shop, through its ties with Asia's wealthiest man, Li Ka-shing, who has helped fund Hampton Creek, along with Gates, venture capitalist and PayPal co-founder Peter Thiel and Internet entrepreneur Jerry Yang, a co-founder and former CEO of Yahoo (YHOO).

Hampton Creek has raised almost $30 million, including a $23 million round of funding announced in February.

In the U.S., Hellmann's and Best Foods, both owned by Unilever, control 45.5% of the mayonnaise market. Kraft, with its Kraft Mayo and Miracle Whip brands, controls another 39.4%. Together the four brands make up over 85% of mayonnaise sales.

Hampton Creek also has its eyes set on frozen cookie dough and the egg substitutes. The company will launch a frozen cookie product called Just Cookies and egg substitute called Just Scrambled, which will take on ConAgra Food's (CAG) Egg Beaters line of egg substitutes. Hampton Creek already sells a product called Beyond Eggs to other food manufacturers.

Tetrick's long-term plans call for an IPO. He said that several companies have approached him about a buyout, but he said he will keep saying no to offers, even at valuations beyond $1 billion.

Here's What We Think We Know About the Next iPhone

Avoiding the 60-Day IRA Rollover Rule

The Trust About Rental Cars and Insurance

At the time of publication, the author held no positions in any of the stocks mentioned.

Follow Chris on Twitter @chriskatje

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs