Mondelēz International (Nasdaq: MDLZ) has taken a majority stake in Undercover Snacks, the East Hanover, N.J.-based maker of chocolate-covered and frosted quinoa crisps, in a transaction that adds another better-for-you brand to the $38.5 billion snacking conglomerate's fast-growing ventures portfolio. Financial terms were not disclosed.
The Deal Structure
Undercover will operate as a standalone business inside Mondelēz's North America Ventures unit, which already houses Perfect Snacks, Tate's Bake Shop and Hu Chocolate — a constellation of acquisitions the company has assembled to capture share in premium and health-oriented snacking. Founders Diana Levy and Michael Levy will retain a significant minority stake; Diana Levy remains CEO and Michael Levy assumes the title of President and COO, with both joining the board.
Distribution Footprint
The brand's retail presence spans more than 25,000 doors across grocery, mass, club, drug and e-commerce channels, including Whole Foods Market, Target, Walmart, Kroger, CVS, Walgreens, Sprouts and Albertsons, as well as Amazon. A partnership with United Airlines — which has distributed more than 175 million units of the snack as a complimentary main-cabin offering since 2023 — has provided the brand with a particularly high-frequency trial vehicle that few emerging food companies can match. That combination of mainstream retail scale and airline channel reach makes Undercover an unusual asset for Mondelēz to fold into a portfolio otherwise built largely on traditional grocery incumbents.
Strategic Context
The better-for-you snack segment has attracted sustained M&A interest as major consumer-goods groups seek growth outside their mature core businesses. Mondelēz has pursued this strategy with particular consistency: its North America Ventures unit functions as a dedicated incubator for high-growth brands that would otherwise be diluted inside a legacy operating structure. For Undercover, Mondelēz International brings procurement scale — potentially lowering input costs for cocoa and quinoa — alongside category-management muscle with major retailers, where shelf placement negotiations can determine a brand's trajectory. Undercover's proprietary quinoa-crisping facility and solar-powered manufacturing operation in East Hanover also represent a fixed-asset base that could support volume expansion without immediate capital constraints.
"Mondelēz shares our passion for great-tasting snacks and brings world-class capabilities that can help us innovate faster, reach many more consumers and build Undercover into a major global brand," said Diana Levy, Founder and CEO of Undercover Snacks, while noting the company's intent to preserve its entrepreneurial culture and commitment to simple, high-quality ingredients.
The brand was founded in 2016 after two of Diana Levy's daughters were diagnosed with celiac disease, prompting a kitchen experiment that eventually produced a certified gluten-free, non-GMO snack manufactured in a dedicated peanut-free and tree-nut-free facility. That origin story resonates with a consumer base increasingly attentive to allergen transparency — a positioning that aligns with broader trends in better-for-you snacking tracked across the specialty retail channel.
Centerview Partners served as exclusive financial adviser to Undercover. Goodwin Procter LLP provided legal counsel, led by Ilan Nissan, Jonathan Scott and Jack Kelly. Mondelēz's advisers were not disclosed. The deal is part of a broader wave of M&A activity in the branded snack category as legacy packaged-food companies compete to acquire brands with differentiated ingredients stories and loyal consumer followings.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
