Mondelēz International has become the latest investor to get behind healthier sweet bakery brand Urban Legend.
The global manufacturer, which owns a large portfolio of brands including Oreo, Ritz, Cadbury, and Milka, announced that its corporate venture capital arm SnackFutures Ventures has taken a minority stake in the London-based company. Financial details were not disclosed.
A previous investment round back in March, led by Samworth Brothers’ venture capitalist arm Perfect Redd, helped raise £3m for Urban Legend. This brought total investment to £13m following £3m in seed funding for its launch in 2021, and £7m in additional venture capital used to set up a custom-built production facility in West London.
The firm said it uses patented air frying technology to reduce the sugar, fat, and calories of its doughnuts by between 30% and 75% compared to deep-fried alternatives. It also makes sweet pastries, with all varieties – including those with creamy fillings, icings, and frostings – coming in at 200 calories or less.
According to its website, the Urban Legend range currently includes nine flavours of filled doughnuts such as the newly launched Raspberry Jam Bakewell, two ring doughnuts, and four types of cinnamon bun. These are available online, either individually (£2.45) or in boxes of three, six and nine (from £5.95), as well as being sold within stand-alone bakery cabinets at nearly 200 stores nationwide.
“Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” commented 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.”
Urban Legend founder Anothony Fletcher, who was formerly CEO at snacking brand Graze, noted that a combination of novel technology and extensive recipe development had enabled his business to be the first to deliver 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,” Fletcher added.
Mondelēz recently rolled out an updated recipe for its original Oreo cookies, filled with even more cocoa. Earlier this year, it announced a strategic partnership with Biscoff owner Lotus Bakeries to develop and market co-branded chocolate products in the UK and other European markets.
With products sold in over 150 countries across the world, Mondelēz International reported net revenues of around $36bn (£27.1bn) last year.
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