In a move that highlights the growing shift toward healthier bakery options in the UK, Oreo cookies maker Mondelēz International has made a first minority investment in local startup, Urban Legend, through its venture unit SnackFutures. Financial details were not disclosed.
Founded in 2021 by Anthony Fletcher, former CEO of Graze snacks (acquired by Unilever) and innovation manager at innocent drinks (acquired by Coca-Cola), Urban Legend is known for using a custom designed and patented air frying technology to reduce sugar, fat and calories by 30-80% compared to traditionally made doughnuts.
“I was very interested in taking some of the most unhealthy food on the market, and asking, how radically can you reformulate it’?” Fletcher explained. the result has been a range of doughnuts that retain the indulgent, Krispy Kreme-style appeal while significantly reducing unhealthy ingredients. “We’ve managed to maintain the taste and appearance, which is so important for consumers.”
Urban Legend currently offers 15 different doughnut flavors, including peanut caramel protein, double chocolate, cinnamon bun, lemon drizzle, frosting filled carrot cake, alongside several multi-packs that come in three, six, and nine different varieties. Each doughnut retails for £2.45, about $3.21, according to its website.
While the company started with pop-up shops, it has quickly scaled to multiple stores across the country, including some of the largest grocery chains like Tesco. Fletcher’s approach, grounded in innovative food science, has turned heads in the industry, attracting the attention of Mondelēz early on.
Richie Gray, VP and Global Head of Mondelēz SnackFutures Ventures, described the company’s enthusiasm for Urban Legend during their first visit. “It was almost exactly a year ago that we went over to London, met with Anthony, tasted their incredible product, and toured the factory,” Gray told me during a recent interview. “We were really impressed with Anthony himself, his track record, but also the vision he was bringing.”
Urban Legend started with pop-up shops, and it has quickly scaled to some of the largest grocery … [+]
‘A Natural Adjacency” For Mondelēz
SnackFutures was launched by Mondelēz to identify disruptive brands that are reshaping the snacking landscape. The corporate venture is constantly on the lookout for new opportunities across the globe, according to Gray, and Urban Legend fits this mold perfectly thanks to its “permissible indulgence” proposition. The current SnackFutures Ventures portfolio includes Celleste Bio, a cocoa technology company, and Craize snack crackers.
In 2021, Mondelēz also acquired Chipita for $2 billion, a high-growth croissants and baked snacks player across Central and Eastern Europe. However, the investment in Urban Legend marks Mondelēz’s first step into the fresh bakery sector in the UK, a move Gray described as a natural adjacency for the company.
He said: “We just felt this was a great opportunity to take 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.”
As part of this investment, Mondelēz aims to provide Urban Legend with the resources and expertise to scale the business. While still in early stages, Urban Legend’s sales have reached multiple millions in pounds, primarily through Tesco. Fletcher acknowledged the brand’s impressive growth, despited being stocked in only a few hundred stores, and envisions a strong future ahead.
“At the moment, there really isn’t a better-for-you bakery segment in the UK,” said Fletcher. “What we’ve had is a lot of response from retailers, claiming how this is one of the most unhealthy and largest categories in the grocery store,” adding how less than 1% of the market focused on health-conscious products.
Gray echoed this sentiment, pointing out that consumers in both the UK and the U.S. are increasingly looking for healthier snacks, but without sacrificing taste. Particularly in the U.S., the low-calorie and healthier bakery segment has already gained traction, with brands offering reduced-calorie breads and baked goods.
“In SnackFutures, we make that investment because we believe Urban Legend has the potential to get to real serious scale. In an ideal world, it may one day become part of the Mondelēz portfolio,” Gray said.