Urban Legend makes doughnuts and pastries for the home market with HFSS reductions of between 30% and 75%, as well as calories slimmed by 200 – including creamy, iced and frosted.
The minority stake comes as the confectionery and snacking giant promised it would pump more resource into the cakes and pastries market and follows its buyout of Chinese frozen cakes and pastries brand Evirth last month.
“UK-based Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” says global head of SnackFutures Ventures Richie Gray. “We’re excited about the brand’s growth potential, focus on ‘mindful indulgence’ and the opportunity to help Mondelēz build capability in the fast-growing ‘better-for-you’ fresh bakery space.”
Growing consumer demand for health
Gray outlined better-for-you and pastries as a key trend and sector SnackFutures was keen to grow its presence in over the coming years, saying the health space was of growing consumer demand and pastries were “adjacent to chocolate”.
Urban Legend has a portfolio of 12 varieties that are sold in 200 stores in standalone bakery cabinets across the UK.
The business was founded in 2021 by scientist-turned entrepreneur Anthony Fletcher, former CEO of healthy snacking brand Graze, which was bought by Unilever in 2019.
Partnering with Mondelēz, which has acquired a minority stake through its SnackFutures Ventures, would allow Urban to scale the business across Europe and globally, Fletcher adds.
How SnackFutures invests
Urban Legend would need to be profitable or running to profit for SnackFutures to invest, FoodNavigator understands following conversations with Gray.
“As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories,” says Fletcher.
“Our combination of novel technology and extensive recipe development enabled us to be the first ones to deliver iconic doughnuts and pastries with less sugar, fat and calories.”
Urban Legend raised £3m in March, following an investment round led by UK food producer Samworth Brother’s capitalist arm Perfect Redd.
The business raised a total of £13m since its 2021 launch, prior to Mondelēz’s stake today. Investors include former England football captain Harry Kane and Welsh rugby coach Warren Gateland.
