IN Brief:
- Mondelēz signed an agreement on 29 October to acquire a majority interest in US-based Undercover Snacks, subject to customary closing conditions.
- The snack company operates its own quinoa crisping and production capabilities and reports distribution across more than 25,000 retail locations.
- Undercover is expected to remain a separately managed business within Mondelēz North America Ventures, with completion expected in the first quarter of 2027.
Mondelēz International has agreed to acquire a majority stake in Undercover Snacks, the US producer of chocolate-coated and frosted quinoa crisps. The agreement was confirmed on 29 October 2026, with the snack company issuing further details the following day. The transaction remains subject to customary closing conditions, including regulatory approval, and is expected to complete in the first quarter of 2027. No purchase price or exact ownership percentage has been disclosed.
Undercover Snacks operates in the gluten-free snack category, combining crisped quinoa with chocolate or other coatings. The business says its products are available in more than 25,000 retail outlets and have also been distributed as complimentary snacks on United Airlines flights. It reports more than 175 million individual units distributed by the airline since 2023. Those measures describe existing routes to consumers, not production capacity, a sales forecast, or revenue earned through that airline arrangement.
Undercover has invested in its own production facility and quinoa crisping capability, according to its executive chairman, Michael Levy. The operation makes a crisp base before products are coated and packed, connecting the texture of the finished snack with a manufacturing step controlled by the company. The transaction materials do not disclose line speed, yield, factory utilisation, or planned changes to machinery, but they establish that Undercover has developed production assets alongside its consumer brand.
The planned ownership arrangement would place Undercover within Mondelēz North America Ventures alongside Perfect Snacks, Tate’s Bake Shop, and Hu Chocolate. Undercover would continue operating independently under its existing management rather than being absorbed immediately into another snack business. The approach retains the specialist’s established product development and production organisation while connecting it to the larger group’s sales, procurement, and distribution capabilities.
Diana Levy, Undercover’s founder and chief executive, is due to continue leading the business after completion. Michael Levy will remain president and chief operating officer, concentrating on strategy, growth, and operations. The pair will retain a significant minority interest and seats on Undercover’s board of directors. These arrangements give the founders continuing operational involvement, although final ownership and governance details will depend on completion of the agreement.
Mondelēz could extend Undercover’s distribution through its larger commercial network, and the companies have identified innovation, procurement, marketing, and consumer insight as areas for cooperation. None of the transaction details specifies an additional production line, enlarged factory, relocation, or capital expenditure amount. Production volumes will continue to depend on available equipment capacity and commercial orders, with any specific investment requiring a later operating decision.
Undercover’s in-house crisping and coating activities distinguish the acquisition from a transaction involving only trademarks and outsourced manufacturing contracts. The existing facility and production know-how are part of the business whose control would change. Its food safety programmes, ingredient supply, and quality requirements would remain essential to manufacturing after the transaction, although the companies have not described a factory integration project or changes to operational standards.
Undercover traces its modern product concept to an effort to make chocolate snacks suitable for a gluten-free diet. Founder Diana Levy developed the quinoa crisp format after two of her daughters were diagnosed with coeliac disease. Its combination of a grain-based crisp and a chocolate coating enabled a product that crossed conventional confectionery and snack categories. Its current management intends to continue developing that proposition under the new ownership structure.
Mondelēz has positioned the proposed investment alongside its growing portfolio of specialist snacks, including products marketed around particular ingredients and dietary needs. Its third-quarter results commentary referred to Undercover as part of that portfolio strategy. The acquisition would add chocolate-coated quinoa crisps to a group with major chocolate and biscuit operations, while leaving the existing brand and production business under its established leadership.
Until the agreed transaction closes, Undercover continues operating with its current ownership and management arrangements. The disclosed plans concern a majority interest for Mondelēz, significant continuing minority ownership for Diana and Michael Levy, and their board participation. Separate future decisions would be needed before the companies could specify changes in product output, factory capacity, or the scale of distribution expansion.
Mondelēz’s US securities filing identifies Undercover Chocolate Company Inc and Undercover Ingredients LLC as the affiliated businesses covered by the agreement. The filing records an expected completion in the first quarter of 2027, subject to regulatory approval and other closing conditions. At present, the confirmed development is the agreement to transfer majority ownership while retaining Undercover’s manufacturing operation and leadership team.
