Mondelēz International’s corporate venture capital arm, SnackFutures, has snapped up a minority stake in the fast-growing non-HFSS doughnut brand Urban Legend.
Founded in 2021 by scientist and entrepreneur Anthony Fletcher, Urban Legend uses a patented air frying technology to reduce sugar, fat and calories by 30% to 75% compared to traditionally made doughnuts. All Urban Legend varieties – including those with fillings, icings and frostings – are 200 calories or less.
“Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” said Richie Gray, global head of SnackFutures Ventures. “We’re excited about the brand’s growth potential, focus on ‘mindful indulgence,’ and opportunity to help Mondelēz build capability in the fast-growing ‘better-for-you’ fresh bakery space.”
The Urban Legend portfolio currently includes 12 varieties that are sold in nearly 200 stores throughout the UK, located in stand-alone bakery cabinets in retailers such as Tesco.
“As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories, and bring something truly unique to fresh bakery,” said Anthony Fletcher, founder and CEO of Urban Legend.
“Our combination of novel technology and extensive recipe development has enabled us to be the first ones to deliver iconic doughnuts and pastries with less sugar, fat and calories to the South of England. A partner like Mondelēz provides an enormous opportunity to scale that possibility throughout Europe and the world.”
The financial terms of the deal and the size of the stake were not revealed.
Mondelēz has recently invested in other innovative food brands as part of the company’s commitment to diversify its portfolio in line with consumer trends towards healthier products.
NAM Implications:
- Smaller players with less to lose can risk a degree of innovation where others hesitate…
- …but acquisition can provide a safe entry point.
- And Mondelēz’s resources and footprint can make good ideas scale.
- Watch this space…
