Mondelēz acquires a minority stake in Urban Legend, a UK-based bakery known for healthier doughnuts and pastries. Learn how this partnership supports the better-for-you trend.


Introduction: Mondelēz Backs Healthier Bakery Brand Urban Legend

Global confectionery and snacking giant Mondelēz has acquired a minority stake in Urban Legend, a UK-based bakery brand known for its healthier take on doughnuts and pastries. This investment comes as part of Mondelēz’s broader strategy to expand into the growing better-for-you bakery market, focusing on reduced sugar and calorie options. Urban Legend’s innovative approach to healthier indulgences aligns perfectly with consumer demand for mindful, yet delicious, treats.


Urban Legend’s Mission: Healthier Indulgence Without Compromise

Founded in 2021 by Anthony Fletcher, former CEO of the healthy snack brand Graze, Urban Legend was born out of the desire to create indulgent bakery products that offer significantly reduced sugar, fat, and calories. Through extensive recipe development and novel technology, the brand has achieved reductions of 30% to 75% in high fat, sugar, and salt (HFSS) content, while slashing calorie counts by up to 200 per pastry.

Urban Legend’s current product portfolio includes 12 varieties of doughnuts and pastries, which are already available in 200 stores across the UK, housed in standalone bakery cabinets.

“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,” Fletcher explained.


Mondelēz’s Investment in the ‘Better-for-You’ Fresh Bakery Category

The decision by Mondelēz to invest in Urban Legend through its SnackFutures Ventures reflects a growing focus on the better-for-you trend in the bakery and pastry sector. Richie Gray, global head of SnackFutures Ventures, emphasized the company’s goal to expand into this adjacent market as consumers become more health-conscious.

“Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” Gray stated. “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.”

This minority stake follows Mondelēz’s recent acquisition of Chinese frozen cakes and pastries brand Evirth, demonstrating its intent to diversify and expand its presence in the bakery sector on a global scale.


Scaling Up: Urban Legend’s Expansion Plans

The partnership with Mondelēz is expected to provide Urban Legend with the resources and expertise needed to scale the business across the UK, Europe, and potentially worldwide. Fletcher noted that the investment would allow Urban Legend to further its mission of delivering healthier baked goods to a broader market, particularly as the demand for better-for-you products continues to grow.

Urban Legend has raised £13 million since its 2021 launch, including a £3 million investment round earlier this year, led by Samworth Brothers’ investment arm, Perfect Redd. The brand also boasts high-profile investors, including former England football captain Harry Kane and Welsh rugby coach Warren Gatland.


The Growing Consumer Demand for Healthier Pastries

The increasing popularity of healthier alternatives in the food industry is driving brands like Urban Legend into the spotlight. As consumers seek indulgent treats that don’t compromise on taste but are lower in sugar, fat, and calories, companies are racing to meet this demand. This is particularly true in the bakery and pastry sector, which traditionally has been associated with indulgence and high-calorie products.

Richie Gray pointed out that pastries are “adjacent to chocolate” in terms of indulgence, making them a natural area of expansion for Mondelēz as it seeks to align with the better-for-you movement. This strategy comes at a time when consumers are more focused on health-conscious choices, looking for guilt-free indulgence that doesn’t sacrifice taste.


How SnackFutures Invests in Innovation

Mondelēz’s investment in Urban Legend is part of its broader SnackFutures Ventures initiative, which focuses on identifying and growing emerging brands in the snacking and confectionery industries. SnackFutures typically looks for companies that are either profitable or on a clear path to profitability, as noted in discussions with Richie Gray.

The venture arm has placed a strong emphasis on innovation, particularly in categories that have proven difficult to disrupt. Fletcher’s background as a scientist and advocate for well-being uniquely positions Urban Legend to succeed in this space. The company’s ability to balance indulgence with healthfulness sets it apart from competitors in the bakery industry.

“As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories,” Fletcher explained, referring to the challenges of developing healthier bakery products.


The Future of the ‘Better-for-You’ Bakery Market

As the demand for healthier snacks and pastries continues to grow, companies like Urban Legend are well-positioned to lead the charge in the better-for-you segment. Mondelēz’s investment signals a growing commitment to this market, as the snacking giant seeks to meet consumer preferences for mindful indulgence while maintaining the flavors and experiences that make bakery products so popular.

Urban Legend’s ability to deliver on this promise with lower HFSS and reduced calories places it at the forefront of the movement toward health-conscious eating, without compromising on the indulgence factor that consumers crave.


Conclusion: A Strategic Partnership for Future Growth

The acquisition of a minority stake in Urban Legend by Mondelēz represents a strategic move to expand into the better-for-you bakery sector, a category that is experiencing significant growth due to rising consumer demand for healthier options. By partnering with Urban Legend, Mondelēz is poised to capitalize on the brand’s innovative approach to healthier indulgence, while offering Urban Legend the resources and support needed to scale its business globally.

As the bakery industry evolves to meet health-conscious trends, brands like Urban Legend are not only leading the way but also shaping the future of indulgent, yet mindful, eating. This partnership marks a pivotal moment for both companies as they work together to redefine the fresh bakery market.