Urban Legend, a key player in the UK bakery sector, specializes in creating doughnuts and pastries that feature HFSS reductions ranging from 30% to 75%. Additionally, the brand has successfully trimmed calories by 200 in its offerings, which include creamy, iced, and frosted varieties.
This minority stake acquisition aligns with the confectionery and snacking giant’s commitment to enhance its presence in the cakes and pastries market. Following its recent acquisition of Chinese frozen cakes and pastries brand Evirth last month, Mondelez has signaled a robust interest in food manufacturing trends and innovation.
“UK-based Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” states Richie Gray, the global head of SnackFutures Ventures. He emphasizes, “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 notes that better-for-you options and pastries represent a crucial trend that SnackFutures is eager to explore in the coming years. He identifies the health sector as experiencing increasing consumer interest, highlighting that pastries are “adjacent to chocolate.”
Urban Legend features a diverse portfolio of 12 varieties, all available in over 200 standalone bakery cabinets across the UK. This expansion indicates a strong alignment with food distribution trends.
Founded in 2021 by Anthony Fletcher, a former scientist and CEO of healthy snacking brand Graze—acquired by Unilever in 2019—Urban Legend is poised for significant growth. Partnering with Mondelēz, through its minority stake in SnackFutures Ventures, presents an opportunity for Urban Legend to scale its operations across Europe and beyond, according to Fletcher.
How SnackFutures invests
According to insights from FoodNavigator and discussions with Gray, Urban Legend must either be profitable or on the path to profitability for SnackFutures to consider an investment. This criterion highlights the importance of established performance in the food and drink industry.
Fletcher notes, “As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories.” He further explains, “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.”
In a recent funding round, Urban Legend successfully raised £3m in March, led by the UK food producer Samworth Brothers’ investment arm, Perfect Redd. Since its launch in 2021, the business has garnered a total of £13m, prior to Mondelez acquiring its stake. Notably, investors include former England football captain Harry Kane and Welsh rugby coach Warren Gatland, underscoring the growing interest in food and drink industry innovation.
