The landscape of the bakery industry in the UK is evolving dramatically, driven by changing consumer preferences towards healthier options. This change is exemplified by Mondelēz International’s recent move to invest in Urban Legend, a startup that is on a mission to transform traditional baked goods. Through its investment arm SnackFutures, Mondelēz is recognizing the need for a shift towards “better-for-you” products without compromising on taste— a vital factor in the bakery segment.
Founded in 2021 by Anthony Fletcher, who previously held leadership roles at Graze snacks and innocent drinks, Urban Legend is committed to reshaping the perception of indulgent treats. The startup utilizes a patented air frying technology that promises to significantly decrease sugar, fat, and calorie counts in its products by as much as 80%. Fletcher’s vision centers around questioning the very essence of unhealthy foods and exploring the limits of reformulation. His goal is to create an assortment of doughnuts that not only taste delicious but also present a healthier profile compared to their traditional counterparts.
Urban Legend’s product offerings include a wide variety of doughnut flavors— such as lemon drizzle, peanut caramel protein, and frosting-filled carrot cake— positioning the company as a serious contender in the UK market. Retailing at about £2.45 per doughnut, Urban Legend is capitalizing on both individual purchases and multi-pack sales, making their innovative treats accessible to various consumers. While the brand initiated its journey with pop-up stores, the rapid growth to multiple locations, including major supermarket chains like Tesco, illustrates a promising trajectory.
The growth of Urban Legend feeds into a larger trend: consumers are increasingly favoring brands that prioritize health without sacrificing flavor. As Anthony Fletcher points out, there is virtually no existing market segment in the UK bakery scene dedicated to healthier options, despite the overwhelming feedback from retailers about the potential within this large category. Urban Legend aims to fill this gap, focusing on a “permissible indulgence” approach that appeals to health-conscious consumers.
Richie Gray, VP and Global Head of Mondelēz SnackFutures Ventures, emphasizes the strategic importance of the investment. By entering the fresh bakery sector, Mondelēz is positioning itself to reshape a traditionally indulgent market. Gray adds that SnackFutures serves as a breeding ground for disruptive brands, and Urban Legend fits this framework exceptionally well. The relationship is viewed as symbiotic, with Mondelēz providing resources and expertise while Urban Legend navigates its expansion.
As Urban Legend embarks on this journey, the investment from Mondelēz is more than just financial; it signals an alignment of visions for a healthier snacking future. Gray envisions Urban Legend developing into a brand capable of significant scale. The current investments under SnackFutures illustrate a commitment to brands that resonate with shifting consumer paradigms, yet this is the first venture into fresh bakery products for Mondelēz, an important step given the company’s widespread market presence.
Fletcher’s aspirations for Urban Legend extend beyond mere profitability; he aims to pioneer a fresh bakery segment that prioritizes nutritional value. The startup has already witnessed impressive growth, generating sales in the millions despite being available in only a fraction of UK stores. This early traction indicates a robust consumer interest in healthier alternatives, which Gray reaffirms by noting the evolving landscape in both the UK and the US, where similar trends towards healthy baked goods are gaining momentum.
The investment in Urban Legend is indicative of a seismic shift in the bakery and snacking landscape. As companies like Mondelēz increasingly recognize the necessity for better-for-you options, we see a landscape that is progressively becoming more conscientious about health and wellness. While taste will remain a non-negotiable factor, the expectation for healthier options is becoming standard. In this context, Urban Legend’s innovative approach signals a bright future not only for the startup but potentially for the entire bakery sector in the UK.
The partnership between Mondelēz and Urban Legend is a transformative step forward. As the demand for healthier, indulgent snacks rises, the success of Urban Legend might pave the way for a new standard in the confectionery industry, signaling to other brands the importance of adapting to meet consumer needs in a rapidly evolving market. This collaboration embodies hope for a delicious yet health-conscious future.