Mondelez International’s venture capital arm has marked its first investment in the UK with a stake in Urban Legend.
SnackFutures, set up by the US snacks and confectionery giant in 2018, partly to team up with start-ups and foster new business, has taken a minority interest in the better-for-you doughnut maker.
Founded in 2021 by scientist and entrepreneur Anthony Fletcher, Urban Legend uses patented air frying technology to reduce sugar, fat and calories by 30-75% compared to traditionally made doughnuts.
The investment is part of Mondelez’s “strategic intent to expand in cakes and pastries”, according to a statement.
Only last week, the Cadbury chocolate and Oreo biscuits owner revealed it had taken a “significant majority” interest in Evirth, a China-based producer of the French-style mille crepe cakes, Swiss rolls, mooncakes and cookies.
SnackFutures took on a new remit in March to serve more directly as a venture capital investment firm.
Richie Gray, the head of SnackFutures and now the lead behind SnackFutures Ventures, said: “Urban Legend is well-positioned to disrupt the UK’s fresh bakery category.
“We’re excited about the brand’s growth potential, focus on ‘mindful indulgence’ and opportunity to help Mondelez build capability in the fast growing better-for-you fresh bakery space.”
Urban Legend currently has a doughnut portfolio of 12 varieties stocked in select Tesco and Sainsbury’s stores in London and the south-east of England. The products are also available online through the company’s website.
They are vegetarian, non-HFSS – or low in fat, salt and sugar – and free of artificial colourings and flavourings.
CEO Fletcher said: “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. 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 Mondelez provides enormous opportunity to scale that possibility throughout Europe and the world.”
Also sitting within the SnackFutures investment portfolio in the US are the cocoa technology company Celleste Bio and a similar business in snacks, Torr FoodTech.
Craize snack crackers is another, along with an initial investment in Hu Master Holdings before that US-based better-for-you chocolate maker was fully acquired by Mondelez in 2021.
