As consumers increasingly lean towards healthier eating habits, the bakery industry in the United Kingdom is beginning to reflect these changes. A significant movement within this sphere is exemplified by Mondelēz International, the manufacturer of Oreos, which has made its first minority investment in a promising startup called Urban Legend. This strategic investment through its venture arm SnackFutures highlights a pioneering shift in the production of baked goods where indulgence meets health consciousness.
Founded in 2021 by Anthony Fletcher, a seasoned innovator formerly at Graze and innocent drinks, Urban Legend has quickly established itself in the competitive bakery arena. Its cutting-edge approach employs custom-designed air frying technology, resulting in reduced sugar, fat, and calorie content by as much as 80% compared to traditionally made doughnuts. Fletcher’s vision centers around transforming some of the most decadent offerings into healthier options without compromising on taste, thereby challenging the conventional notion that healthier foods must sacrifice pleasure.
Urban Legend aims to offer doughnuts that resonate with consumers looking for an indulgent experience, reminiscent of the iconic Krispy Kreme. Fletcher’s philosophy is both straightforward and ambitious: “How radically can you reformulate unhealthy food?” By focusing on this question, Urban Legend has crafted 15 unique doughnut flavors, from peanut caramel protein to frosting-filled carrot cake, each retailing at approximately £2.45 (about $3.21).
The air frying technology not only contributes to lower calorie counts but also maintains the visual allure and flavors consumers expect. Thus, Urban Legend represents a fusion of science and culinary artistry that appeals to a broad audience, from the health-conscious to the traditional sweet tooth.
Starting with pop-up locations, Urban Legend has rapidly expanded its reach, now being stocked by major grocery chains including Tesco. The successful growth trajectory has not gone unnoticed. Mondelēz’s SnackFutures sees in Urban Legend a brand that aligns with its mission to identify and support disruptive brands that are reshaping the snacking landscape. According to Richie Gray, VP and Global Head of Mondelēz SnackFutures Ventures, their engagement with Fletcher and his product during their initial meeting in London showcased their alignment in vision and purpose.
SnackFutures itself is known for investing in innovative companies that push the boundaries of traditional snacking. Its portfolio already includes brands like Celleste Bio and Craize, demonstrating Mondelēz’s commitment to diversifying its offerings within healthy and indulgent spaces.
The foray into Urban Legend signifies Mondelēz’s strategic exploration into the fresh bakery sector. It’s a recognized fact that the UK bakery market has lagged in health-focused options, with Fletcher noting that less than 1% is directed towards health-conscious products. Both businesses, through their collaboration, aim to change this narrative.
The investment also positions Mondelēz to learn from emerging trends in consumer preferences. With the health-oriented segment of baked goods gaining traction, particularly in the USA, the company recognizes the potential for Urban Legend to scale significantly. Gray emphasized that they see a unique opportunity in Urban Legend’s model that can potentially reshape the market for healthier bakery items in the UK.
As the partnership unfolds, Urban Legend’s aspirations seem promising. The initial sales figures indicate a positive consumer response, even with limited distribution. Fletcher is optimistic about the potential for growth and innovation within this niche of the bakery market.
The vision for Urban Legend goes beyond just profit; it aims to cultivate a “better-for-you” bakery category that has been largely untapped. With consumer demand for tasty yet health-conscious snacks growing in both the UK and globally, Urban Legend stands at the forefront of this emerging trend. The brand illustrates how indulgence can coexist with healthy eating without a compromise on flavor or satisfaction—a concept that could very well define the next era of snacking.
The investment by Mondelēz in Urban Legend is indicative of a broader shift that recognizes the need for healthier baked goods. As consumer preferences evolve, brands that successfully balance health and indulgence will not only thrive but could also redefine an entire market segment. The future of the bakery industry may just be one air-fried doughnut at a time—and Urban Legend is leading the charge.
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