Cadbury is doubling down on health-focused food technology even as the global “better-for-you” trend loses momentum. Mondelēz International, which owns Cadbury, has acquired cutting-edge manufacturing technology from Urban Legend—a UK start-up known for its low-fat, low-sugar doughnuts—despite the category’s recent struggles.
The move comes at a time when several health-oriented indulgence brands have faltered. Urban Legend shut operations earlier this year despite strong backing, advanced tech and a national retail footprint. Low-sugar cookie brand Jnck Bakery has also closed down, and Cadbury previously discontinued its own low-sugar Fruitier & Nuttier range.
Urban Legend’s technology, however, remains notable. Built on advanced air-frying principles, it uses steam beams and novel starch-protein systems to “set” doughnuts, reducing fat by 65%, sugar by 30% and calories by 30% compared to conventional products—while complying with HFSS norms. Yet even with strong innovation, it struggled to win over consumers who continue to favour full-indulgence bakery products.
Industry analysts say the better-for-you category is losing appeal as shoppers prioritize taste over nutrition when buying treats. Rising skepticism around ultra-processed foods has also hurt brands relying on reformulation and novel processing, pushing consumers toward traditional, simpler baked goods.
Why, then, would Mondelēz buy this technology now? Experts suggest two strategic motivations. One is competitive: securing breakthrough IP ensures rivals cannot use it. Large FMCG companies often acquire promising technologies not just for deployment, but also to keep them off competitors’ shelves.
The other is growth-driven. Global snacking is booming, with the market expected to reach $246 billion this year and surge to $922 billion by 2030. Confectionery majors, including Mars and Ferrero, have expanded aggressively into snacks, and Mondelēz is expected to follow suit.
Analysts believe Cadbury could use Urban Legend’s technology to build next-generation snack formats—products that don’t compete directly with traditional indulgent items but appeal to specific consumer groups, such as high-protein mini treats or air-fried bite-sized desserts for health-conscious buyers, including GLP-1 users.
As the snacking market evolves, any technology that enables innovation in this fast-growing segment is becoming increasingly valuable—and Mondelēz appears determined not to miss the next wave.
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