The demise of Urban Legend prompts all sorts of soul searching. Millions have been pumped into the development and rollout of this startup, which was at the vanguard of a science-led response from the food and drink industry to the ongoing obesity crisis.
What went wrong? Was it the name – a low calorie doughnut brand named after a compelling story that turns out not to be true? It smacks of a self-fulfilling prophecy.
Was it the proposition? If we really want a doughnut do we want it to be less calorific? Not quite as naughty but not quite as nice? Isn’t the choice between a treat (or box of sharable treats) and an alternative snack or simple abstinence? Indeed, with an ingredients list as long as your arm the Urban Legend doughnut was the very definition of an ultra-processed food.
Was it the science? The fact the mouthfeel didn’t quite stack up (at least not in certain atmospheric conditions)? On the other hand, we understand the IP will be sold in a pre-pack.
Was it the execution? Urban Legend was competing with Krispy Kreme and Dunkin’. Two standalone stores were shuttered as it realised it would be unable to reach the scale investors craved via this route. In contrast, artisan doughnut brand Crosstown has grown more slowly and via small outlets.
Instead, Urban Legend was delivering fresh doughnuts to Tesco and Sainsbury’s stores in vans. But that’s still an expensive route to market and with supermarkets wanting a healthy rate of sale (even if it ticked a box).
It makes you wonder. Maybe there was another route to market: a partnership with Greggs or Gail’s or Pret a Manger.
Whatever the reasons, the failure of Urban Legend should be a reminder to policymakers of the perils of setting targets for reductions in HFSS in the assumption we can reformulate ourselves out of the obesity crisis.
It’s not only an expensive business, there is no guarantee the innovation will work.
At the same time, we should encourage entrepreneurs to dream big and come up with inventive solutions to the problems faced by the food industry and society. But that brings high risk.
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