Mondelēz to take majority stake in Undercover Snacks

By Marcus Bennett

Mondelēz International said Friday it will acquire a majority stake in Undercover Snacks in a deal expected to close in the first quarter of 2027. Financial terms were not disclosed.

Undercover founder and CEO Diana Levy will remain CEO, and the brand will stay standalone within Mondelēz North America Ventures. The business will sit there alongside Perfect Snacks, Tate’s Bake Shop and Hu Chocolate, which the company describes as high-growth brands.

What is Mondelēz buying?

Mondelēz said Levy founded Undercover in 2016 to provide a snacking option for two of her children diagnosed with celiac disease. The business sells chocolate-covered and frosted quinoa crisps.

The announcement says the products use simple, high-quality, non-GMO ingredients and are certified gluten-free. Undercover produces them at a dedicated peanut-free and tree-nut-free facility in New Jersey.

Undercover also uses Rainforest Alliance-certified cocoa and makes its snacks in a facility powered by solar energy. Mondelēz disclosed no supplier, production-capacity or cost details.

Undercover adds a clearly defined gluten-free product, but its financial scale and expansion plan remain undisclosed.

Why does Undercover fit the portfolio?

Mondelēz’s portfolio spans Oreo, Chips Ahoy!, Ritz and Triscuits. CEO Dirk Van de Put told analysts: “We believe that over time, our portfolio needs to evolve towards healthier snacks, and this is one step in that direction basically.”

The acquisition expands Mondelēz’s better-for-you and permissible-indulgence offering and could capture more snacking occasions. Van de Put expects aging consumers to seek “great tasting, better-for-you snacks that support a more active lifestyle.” That is a management expectation, not a consumer finding disclosed with the deal.

Van de Put described Undercover’s quinoa crisps as having “healthy ingredients in disguise,” unlike an indulgent chocolate chip cookie such as Tate’s. Mondelēz supplied no category-share, pricing or margin data to test that positioning.

The portfolio gains a better-for-you option, though the consumer case still rests on the CEO’s expectation.

How can Undercover grow?

Undercover is sold in more than 25,000 retail locations. Travelers on United Airlines consume its snacks, although the announcement gives no volume and does not describe a formal airline partnership.

Mondelēz products reach tens of thousands of retailers worldwide. The company will use that reach and its retailer relationships to grow Undercover’s distribution, but disclosed no target store count, retailer commitment or rollout schedule.

Mondelēz also expects to help with procurement, consumer insight and marketing. Van de Put said Undercover remains small but grows fast, with a large distribution opportunity; no revenue, growth rate or marketing budget was disclosed.

Distribution is the clearest growth lever, but no numerical target supports the promise.

What does founder Diana Levy retain?

Levy called the transaction “an opportunity to build Undercover into something much bigger.” She will remain CEO and keep the brand operating as a standalone business.

In her statement, Levy said Mondelēz brings “world-class capabilities that can help us innovate faster, reach many more consumers and build Undercover into a major global brand.” She added that the deal could preserve “the culture, entrepreneurial spirit and passion for simple, high-quality ingredients that make Undercover special.” No innovation, consumer-reach or global-expansion targets were set.

Levy keeps control, while the global-brand promise remains unquantified.

How large is the sales backdrop?

Mondelēz posted a 2.3% increase in revenue to $9.97 billion during its third quarter. The company said much of the growth came from outside its core North American and European markets.

• Latin America: revenue rose 12%.
• North America: revenue rose 1.1%.
• Europe: revenue fell 3.3%.

Those results create a mixed backdrop for a portfolio expansion. Mondelēz did not disclose Undercover’s revenue, purchase accounting or expected contribution, so the deal’s near-term financial effect cannot be measured from the announcement.

With no purchase price or Undercover forecast, the acquisition remains a portfolio bet rather than a measurable growth case if and when Mondelēz closes the deal.