Internal
emails reveal coordinated attack by American Egg Board to quash the
rise of Hampton Creek’s egg alternative in possible breach of federal
regulations
A government-controlled industry group targeted popular food
bloggers, major publications and a celebrity chef as part of its
sweeping effort to combat a perceived threat from an egg-replacement
startup backed by some of Silicon Valley’s biggest names, the Guardian
can reveal.
The lobbyists’ media counterattack, in possible violation
of US department of agriculture rules, was coordinated by a marketing
arm of the egg industry called the American Egg Board (AEB). It arose
after AEB chief executive Joanne Ivy identified the fledgling technology
startup Hampton Creek as a
“crisis and major threat to the future” of the $5.5 billion-a-year egg market.
A
detailed review of emails, sent from inside the AEB and obtained by the
Guardian, shows that the lobbyist’s anti-Hampton Creek campaign sought
to:
- Pay food bloggers as much as $2,500 a post to write
online recipes and stories about the virtue of eggs that repeated the
egg lobby group’s “key messages”
- Confront Andrew Zimmern, who had featured Hampton Creek on
his popular Travel Channel show Bizarre Foods and praised the company
in a blog post characterized by top egg board executives as a “love
letter”
- Target publications including Forbes and Buzzfeed that had written broadly positive articles about a Silicon Valley darling
- Unsuccessfully
tried to recruit both the animal rights and autism activist Temple
Grandin and the bestselling author and blogger Ree Drummond to publicly
support the egg industry
- Buy Google advertisements to show AEB-sponsored content when people searched for Hampton Creek or its founder Josh Tetrick
The
scale of the campaign – dubbed “Beyond Eggs” after Hampton Creek’s
original company name – shows the lengths to which a
federally-appointed, industry-funded marketing group will go to squash a
relatively small Silicon Valley startup, from enlisting a high-powered
public relations firm to buying off unwitting bloggers.
One
leading public health attorney, asked to review the internal
communications, said the egg marketing group was in breach of a US
department of agriculture (USDA) regulation that specifically prohibited
“any advertising (including press releases) deemed disparaging to
another commodity”.
Tetrick called for the USDA to clamp down on the food lobby, as thousands of
petitioners called on the White House to to investigate the USDA itself for “deceptive endorsements”.
“This
is a product that has been around for a very long time,” the Hampton
Creek founder said. “They are not used to competition and they don’t
know how to deal with it.”
In statements, AEB’s Ivy and a USDA
official denied any wrongdoing. An agriculture department official said
that it “does not condone any efforts to limit competing products in
commerce”.
The AEB contracted Edelman, the world’s largest public
relations company, to coordinate the attack. One passage within the
email tranche suggests that AEB amended its contract with Edelman to
include a section called “Beyond
EggsConsumer Research”.
“Conduct
qualitative/quantitative consumer research to pinpoint and prioritize
areas of focus. For example, research will, ideally, provide actionable
intelligence on what attacks are gaining traction with consumers and
which are not so as to help industry calibrate level of communications
response (if any) to ensure a consistent response strategy moving
forward,” the passage reads.
“Ads considered disparaging are
those that depict other commodities in a negative or unpleasant light
via either video, photography or statements,” said attorney Michele
Simon, of the law firm Foscolo and Handel, after reviewing the AEB
emails. “The entire contract [amendment] with Edelman violates this
rule.”
Some of the web’s biggest food blogs were unwittingly paid
from the “Beyond Eggs” budget to write supportively about eggs as AEB
executives privately expressed mounting frustration about Hampton Creek,
whose high-profile backers include the Facebook backer Peter Thiel,
billionaire investor Vinod Khosla and other Silicon Valley luminaries.
When
one Edelman executive, Jamie Singer, advised that the board wait on “an
eventual and organic balancing of the media narrative”, Kevin Burkum,
AEB’s senior vice-president of marketing, shot back: “Help us understand
why the recommended course of action seems to always be sit back and do
nothing?”
More recently, Hampton Creek has in fact faced its own PR woes with
allegations of suspect science and hazardous work environments. And last month the US Food and Drug Administration
warned the California startup that
the name of its flagship product, Just Mayo, was misleading and and
should be renamed, insisting an egg-less product should not be described
as mayonnaise.
The emails reveal how AEB executives had grown
increasingly frustrated about coverage of Hampton Creek, hailing the
company as providing a high-tech and sustainable alternative to
factory-farmed eggs.
In an email an AEB executive noted
a blogpost by
Zimmern – an influential TV celebrity – that complimented Hampton Creek
and described caged-chicken egg production as “the poster child for
everything farming and food systems shouldn’t be”.
The AEB
executive complained Zimmern’s post was “a new love letter” to Hampton
Creek and suggested sending the TV chef a study underwritten by the AEB
to contradict his take. A long exchange discussed whether or not to
respond to Zimmern’s offer to host a bake-off between Beyond Eggs and
hen eggs.
On behalf of the egg group, Edelman contacted
high-profile food blogger and Food Network star Drummond, author of
several top-selling cookbooks. Drummond did not agree to work on the
campaign, the emails indicate. The group also sought out Grandin,
another famous figure whose endorsement would have been valuable.
Grandin, too, appears to have declined.
In 2013, Google bought ads
against Hampton Creek’s name and other search terms including Tetrick’s
name and his chief product, Just Mayo, so that links to egg
board-sponsored talking points about industrial farming would pop up
alongside links to Hampton Creek. The AEB emailed about how to deal with
Buzzfeed’s Rachel Sanders, who
reported on the ads, and others who followed up on the campaign, in the emails.
The
AEB retained at least five bloggers and contacted many more during the
period covered by the emails. The bloggers disclosed the egg group’s
advertising on their sites. The two bloggers who responded to the
Guardian for this article said they were completely unaware that the
sponsorships were part of a concerted effort against Hampton Foods.
Hemi
Weingarten, author of the popular food blog Fooducate and an occasional
columnist for the Huffington Post, published a post marked as sponsored
by the AEB entitled
“10 Reasons to Love Eggs” that
including this sentence: “At just $0.15 each, eggs are the least
expensive source of high-quality protein per serving.” This language is
consistent with one of the American Egg Board’s most regularly used
talking points.
Weingarten said he knew nothing of the campaign against Hampton Creek and pointed out that his blog had published
positive coverage of
the company. “As part of our ad sales activities we reach out to
healthy brands and commodity boards to spend their ad dollars to reach
our audience,” Weingarten told the Guardian.
Lori Lange, of the popular blog Recipe Girl, is listed by Edelman as receiving a fee of $2,500 for
a bagel quiche recipe. Lange
disclosed the post was sponsored. The Guardian emailed Lange for
comment; she did not respond but did remove an AEB infographic that read
in part: “Today’s hens are producing more eggs and living longer due to
better health, nutrition and living space.”
Blogger Gaby Dalkin
was paid $2,000 to include the AEB’s “Incredible Eggs” talking points in
a recipe for breakfast burritos, and Susan Whetzel of Doughmesstic
included the language in her
in her Italian Egg Frittata recipe, according to the emails. Both disclosed the posts were sponsored.
Whetzel
said she, too, was unaware that the blog post was considered part of a
campaign against Hampton Creek by the AEB, and that she had adhered to
the Federal Trade Commission’s advertising guidelines by including a
disclosure notice. “It’s obvious it’s a sponsored post,” she wrote in an
email to the Guardian.
Dalkin did not respond but an email bounce back said she was out of the country.
The cache of 600 pages of AEB emails,
first reported last week,
was obtained by Ryan Shapiro, a Freedom of Information Act (Foia)
expert at the Massachusetts Institute of Technology, and Washington
DC-based Foia specialist attorney Jeffrey Light.
The messages show Ivy, who is set to leave the AEB at year’s end after being named the industry’s
2015 Egg Person of the Year,
received many messages from egg producers and processors who make up
the board’s constituent members, are required by law to supply its
budget and were evidently unnerved over the rise of Hampton Creek.
Ivy expressed a desire to push back at the positive media coverage the company would start to receive, from
the pages of Forbes magazine to Buzzfeed and beyond.
“We
know that shell egg producers are [...] feeling threatened by the
introduction of this product,” she wrote in a September 2013 email.
In
a statement to the Guardian, Ivy said the AEB’s efforts to “balance
existing media efforts” were “common” practice and “part of a larger
business strategy”.
“While egg replacers have been around for many
years, we recognize that the interest in this category has increased
recently,” she said. “In response, we bolstered our efforts to
increase the demand for eggs and egg products through research,
education and promotional activities.
“These activities, which are
common within the consumer products industry, include continuing to
work with industry thought-leaders, conducting a paid social media
strategy to balance existing media efforts and liaising with partner
organizations.”
However it is the process of targeting a perceived
rival that could prove most controversial for the AEB, a statutory body
paid for by industry but partly appointed by the US agriculture
secretary.
Paid-for or “sponsored” blog posts are not uncommon, but the
notion that a quasi-governmental body funded a campaign to undercut a
Silicon Valley food startup could raise eyebrows.
Tetrick, the Hampton Creek founder,
called for a congressional inquiry on Thursday, saying that the agriculture department should be held responsible for the AEB’s actions.
“They have gone way beyond what they are allowed to do,” Tetrick said of the egg lobbying group.
He said the scale of the egg lobby’s retaliation against his company’s rise was “hard to wrap your head around”.
“They
play the same game over and over again,” he told the Guardian on
Friday. “They say they are doing it to promote eggs, but it’s got
nothing to do with competition.”