Mondelēz International ventures into healthier bakery sector with latest investment

Mondelēz International, owner of global confectionery brands Cadbury, Oreo and Milka, has announced that its corporate venture capital arm, SnackFutures Ventures, has taken a minority stake in Urban Legend, a rapidly growing “better for you” bakery business in the UK.

Founded by scientist and entrepreneur Anthony Fletcher in 2021, Urban Legend specialises in healthier versions of doughnuts, using patented air-frying technology to significantly reduce sugar, fat and calorie content. Urban Legend’s products contain 30 to 75 percent less sugar, fat and calories than traditional doughnuts, and every variety contains no more than 200 calories. Despite their reduced-calorie approach, the brand offers a wide range of doughnuts, including those with creamy fillings, icings and frostings.

“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.”

Currently, Urban Legend’s portfolio includes 12 varieties sold in nearly 200 stores across the UK, with products displayed in stand-alone bakery cabinets. The brand’s innovative use of air-frying technology has enabled it to offer healthier options without sacrificing taste or texture.

“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 enormous opportunity to scale that possibility throughout Europe and the world.”

Urban Legend’s products are non-HFSS, vegetarian and contain no artificial colours or flavours, aligning with consumer demands for healthier and more natural baked goods.

In addition to its stake in Urban Legend, Mondelēz recently announced plans to acquire a significant majority stake in Evirth, a leading Chinese manufacturer of cakes and pastries. This move represents a key step in Mondelēz’s strategy to accelerate growth in the cakes and pastries category, a sector that has become a core focus alongside its established presence in chocolate and biscuits.