The food industry is undergoing a significant transformation, particularly in the realm of snacking and baked goods. With increasing awareness about health and nutrition, consumers are on the lookout for indulgent treats that do not compromise their wellness goals. In a strategic move to align itself with this trend, Mondelēz International—famed for its Oreo cookies—has entered the scene by investing in the UK-based startup Urban Legend through its entrepreneurial arm, SnackFutures. This investment not only reflects Mondelēz’s desire to innovate but also highlights the burgeoning market for healthier bakery alternatives.
Urban Legend: Leading the Pack in Health-Conscious Snacks
Founded in 2021 by Anthony Fletcher, who boasts impressive credentials from his leadership roles at Graze and innocent drinks, Urban Legend has made waves with its inventive approach to doughnuts. Using a patented air frying technology, the startup has significantly reduced sugar, fat, and calorie content by an impressive 30-80% compared to traditional methods. This innovation prompts significant questions about how baked goods can evolve to meet modern health standards without sacrificing the comfort and taste that consumers expect.
Fletcher articulates a bold vision: “I was very interested in taking some of the most unhealthy food on the market and asking how radically can you reformulate it?” The result is a line of doughnuts that mirrors the classic appeal of renowned brands like Krispy Kreme while providing a healthier option. This emphasis on taste and presentation is pivotal, as many consumers shy away from products that appear to compromise on indulgence.
Scaling Up with a Purpose
Urban Legend currently showcases 15 delightful doughnut flavors, ranging from double chocolate to lemon drizzle, appealing to a diverse array of palates. Priced at £2.45, or approximately $3.21, these doughnuts are not only healthier, but also competitively positioned in a saturated market. Initially launching through pop-up shops, Urban Legend has swiftly expanded to include prominent grocery chains such as Tesco around the UK, affirming its growing popularity and market viability.
The initial interest from Mondelēz underscores the startup’s potential to redefine the realm of fresh bakery items. Richie Gray, Vice President and Global Head of SnackFutures Ventures at Mondelēz, expressed admiration for Fletcher’s vision and the innovative approach of Urban Legend. Gray stated, “It was almost exactly a year ago that we went over to London, met with Anthony, tasted their incredible product, and toured the factory.” This enthusiastic endorsement emphasizes the alignment between Mondelēz’s goals and Urban Legend’s mission.
Founded as a venture platform by Mondelēz, SnackFutures is tasked with pinpointing disruptive brands that have the potential to reshape the snack industry landscape. With a portfolio that includes ventures like Celleste Bio—dedicated to cocoa technology—and Craize snack crackers, SnackFutures represents Mondelēz’s forward-looking approach to business. The investment in Urban Legend is notable, marking the company’s inaugural foray into the fresh bakery segment in the UK, which Gray describes as a “natural adjacency” for the corporation.
This strategic partnership aims not only to support Urban Legend’s growth but also to collaborate in creating a category that caters to health-conscious consumers. Gray articulated, “We just felt this was a great opportunity to take a small stake in Anthony’s business… It’s really about partnering, learning together, and potentially creating a new category for better-for-you fresh bakery.”
Despite being early in its journey, Urban Legend has reportedly achieved sales in the millions, primarily through partnerships with retailers like Tesco. Fletcher recognizes that the current market lacks a prominent segment focused on health-oriented baked goods, noting, “There really isn’t a better-for-you bakery segment in the UK.” This sentiment is echoed by Gray, who highlights a clear consumer demand for snacks that prioritize health without compromising on taste.
As the low-calorie and healthier bakery segment gains traction, particularly in the U.S. market, Urban Legend stands at the forefront of this trend in the UK. With strong backing from Mondelēz and a clear vision for creating appealing yet healthier bakery products, the future appears bright for Urban Legend. Gray’s optimistic remark, “In an ideal world, it may one day become part of the Mondelēz portfolio,” signals a potential evolution for a brand that has quickly established itself within a critical niche.
Overall, this investment and partnership not only represent a promising future for Urban Legend but also outline a broader trend indicating that the snacking world is ripe for disruptive innovations that cater to health-conscious consumers.