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Mondelēz International said it will take a majority stake in Undercover Snacks, a maker of chocolate-covered quinoa crisps. The deal is expected to close in the first quarter of 2027; financial terms were not disclosed.
Undercover will remain a standalone business within Mondelēz North America Ventures, with founder Diana Levy continuing as CEO. The acquisition fits Mondelēz’s stated effort to expand its better-for-you snack offerings, though the companies have not disclosed the stake’s price or specific plans for the brand.
Mondelēz International said it will take a majority stake in Undercover Snacks, adding the maker of chocolate-covered quinoa crisps to its portfolio as the Oreo owner pursues more snacks positioned as better-for-you. The deal is expected to close in the first quarter of 2027, but the companies did not disclose its financial terms.
Undercover will operate as a standalone business within Mondelēz North America Ventures, alongside brands including Perfect Snacks, Tate’s Bake Shop and Hu Chocolate. Undercover founder Diana Levy will remain CEO, according to the announcement. The terms do not specify the size of Mondelēz’s stake beyond describing it as a majority interest.
Undercover was founded in 2016. Its products are chocolate-covered and frosted quinoa crisps, and the company describes its approach as putting “healthy ingredients in disguise.” The source report says the snacks are sold in more than 25,000 retail locations and are served to travelers on United Airlines. That distribution figure is a reported company footprint, not a measure of sales or market share.
Mondelēz says its retailer relationships and operating capabilities could help expand Undercover’s distribution and support procurement, consumer insights and marketing. Those are areas the company identified as potential support; it has not provided specific targets, investment amounts or a timetable for changes to Undercover’s operations.
A New Route for Healthier Snacks
The transaction gives Mondelēz a larger presence in snacks it describes as “better-for-you” and “permissible indulgence”, while giving Undercover access to the resources of a much larger food company. Mondelēz sells brands including Oreo, Chips Ahoy!, Ritz and Triscuit, and says it can use its retailer relationships to broaden Undercover’s reach.
For shoppers, the deal could mean wider availability of Undercover products over time, but no distribution changes have been announced. The acquisition also signals a portfolio priority from Mondelēz leadership: the company is looking beyond its established confectionery and cracker brands for products aimed at different snacking occasions and consumer preferences. The extent to which Undercover can grow within the group remains to be seen.
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Mondelēz’s Portfolio Shift
Mondelēz CEO Dirk Van de Put has said the company’s portfolio needs to evolve toward healthier snacks. In remarks reported alongside the deal, he said consumers may seek snacks that taste good and support a more active lifestyle as they age. That is the company’s rationale for the acquisition, not a claim that Undercover products have a particular health effect.
Undercover’s origin is tied to Levy’s family: according to the report, she started the business to provide a snack option for two of her children, who had been diagnosed with celiac disease. The products are described as certified gluten-free and made in a dedicated peanut-free and tree-nut-free facility in New Jersey. The report also says Undercover uses Rainforest Alliance-certified cocoa and manufactures its products in a solar-powered facility; those sourcing and production details are company-related claims.
The deal comes as Mondelēz reported third-quarter revenue of $9.97 billion, up 2.3% from the year-earlier quarter. The source report said Latin America recorded the strongest sales growth, at 12%, while North American revenue rose 1.1% and European revenue declined 3.3%. Those regional figures provide recent business context; the announcement did not say the acquisition was a response to any one region’s results.
“We believe that over time, our portfolio needs to evolve towards healthier snacks, and this is one step in that direction basically.”
— Dirk Van de Put, Mondelēz CEO
Price, Terms and Growth Plans
Financial terms have not been disclosed, and the announcement does not state the exact percentage Mondelēz will own, whether additional ownership is planned, or whether the deal includes performance-based payments. The expected first-quarter 2027 closing remains subject to completion of the transaction; the source material does not detail any remaining conditions.
It is also unclear how quickly Mondelēz will expand Undercover’s retail presence, whether the product range or manufacturing arrangements will change, and what revenue or distribution goals the companies have set. Mondelēz’s claims about potential help with procurement, marketing and consumer insights describe possible support, not confirmed outcomes. The company has not provided evidence that the snacks deliver specific health benefits.
Closing and Brand Integration
The next stated milestone is the deal’s expected closing in the first quarter of 2027. Until then, Mondelēz and Undercover have not announced a detailed integration schedule or changes for customers and retailers.
After the transaction closes, readers and retail partners will be able to look for specifics on distribution, product development and how Undercover will operate within Mondelēz North America Ventures. Levy is expected to remain CEO, but the companies have not outlined further leadership or operational arrangements.
Key Questions
What is Mondelēz acquiring?
Mondelēz plans to take a majority stake in Undercover Snacks, a company that makes chocolate-covered and frosted quinoa crisps. The financial terms were not disclosed.
When is the deal expected to close?
The companies expect the transaction to close in the first quarter of 2027. The source material does not give a specific date or describe remaining closing conditions.
Will Undercover remain a separate brand?
Undercover is expected to operate as a standalone business within Mondelēz North America Ventures. Founder Diana Levy will remain CEO, according to the announcement.
Why is Mondelēz buying a stake in Undercover?
Mondelēz says the deal supports its effort to expand snacks it positions as better-for-you. It also says its retailer relationships and capabilities could help Undercover grow, but it has not announced specific growth targets.
How much will Mondelēz pay?
The purchase price and other financial terms have not been disclosed. The announcement also does not state the exact size of the majority stake.
Source: fooddive.com
