Anglo-Dutch food giant Unilever is taking legal action against a small American company which is making egg-free mayonnaise.

Unilever says the vegan product should not be called mayonnaise because it does not contain egg and that the product misleads customers.

Just Mayo uses yellow peas instead of egg and maker Hampton Creek says its product is healthier than traditional mayonnaise.

Bill Gates is one of the investors in Hampton Creek, a technology-based firm which was launched in 2011 to develop plant-based foods with popular appeal.

Unilever owns the popular US mayonnaise brands – Hellmann’s, which has just been launched in the Netherlands – and Best Foods.

The food giant’s Conopco subsidiary is demanding compensation for lost earnings and that Just Mayo changes its packaging – which features an egg shape – and adverts.