Exciting News from Mondelēz International’s SnackFutures Ventures
- In a strategic move, SnackFutures Ventures, the corporate venture capital arm of Mondelēz International, has acquired a minority stake in Urban Legend, a rapidly growing fresh doughnut and pastry business based in the U.K. The financial details of the deal have not been disclosed yet.
- This investment is part of Mondelēz’s strategy to expand its presence in the better-for-you fresh bakery category, with a focus on cakes and pastries. Urban Legend’s innovative air frying technology allows for a reduction of up to 75% in sugar, fat, and calories compared to traditional doughnuts.
- Established in 2018, SnackFutures aims to enhance Mondelēz’s leadership in the snacking industry by investing in promising brands and technologies. Initially creating its own brands, SnackFutures shifted its focus in 2023 to investing in established products that have the potential for acquisition.
Insight into Mondelēz’s Expansion into Cakes and Pastries
Mondelēz has a strong presence in snacking with brands like Ritz, Clif, Tate’s, and Oreo, but the company has expressed a desire to delve deeper into cakes and pastries. The partnership with Urban Legend introduces Mondelēz to the doughnut market, a segment not previously represented in its portfolio.
The investment in Urban Legend aligns with Mondelēz’s objectives by establishing a stronger foothold in cakes and pastries through a brand known for its healthier offerings in a traditionally indulgent category. All doughnut varieties from Urban Legend contain 200 calories or less, highlighting its commitment to health-conscious consumers.
Richie Gray, the global head of SnackFutures Ventures, expressed enthusiasm about the partnership with Urban Legend, citing the brand’s innovative technology and potential to disrupt the snacking industry. The collaboration between the two companies reflects Mondelēz’s strategic focus on bakery and healthier snacking options.
Urban Legend’s product range, currently available in nearly 200 stores across the U.K., includes a diverse selection of doughnuts and expanding into cinnamon rolls, showcasing the brand’s versatility and growth potential.
By investing in Urban Legend, Mondelēz gains access to emerging market segments and innovative technologies that can be leveraged across its global brands. This minority stake investment allows Mondelēz to support the growth of promising startups while enhancing its own product offerings.
SnackFutures’ approach of investing in small brands and scaling them with Mondelēz’s expertise has proven successful, with Hu being one of the notable acquisitions following an initial minority stake investment.
Mondelēz’s expansion in the cakes and pastries sector has been propelled by strategic acquisitions, including Give & Go in 2020, Chipita in 2021, and Evirth in China. These acquisitions demonstrate Mondelēz’s commitment to diversifying its product portfolio and exploring new market opportunities.