Mondelēz International (Nasdaq: MDLZ) has taken a majority stake in Undercover Snacks, the East Hanover, N.J.-based better-for-you brand behind chocolate-covered and frosted quinoa crisps — a deal that slots the family-founded startup into the snacking giant's high-growth venture portfolio and opens a substantially wider distribution runway across retail, foodservice, and travel channels.
The Deal Structure
Undercover will operate as a standalone business inside Mondelēz's North America Ventures unit, a shelf that already holds Perfect Snacks, Tate's Bake Shop, and Hu Chocolate. Founder and CEO Diana Levy and her husband Michael Levy, who serves as Executive Chairman, each retain a significant minority stake and will join the board. Michael Levy transitions to President and COO. The Levys' three daughters — who hold roles across marketing, sales, and finance — remain part of the operating team. Financial terms were not disclosed. Centerview Partners advised Undercover; Goodwin Procter LLP served as legal counsel.
Scale and Channel Footprint
Founded in 2016 after Diana Levy developed a gluten-free snack following celiac disease diagnoses for two of her daughters, Undercover has scaled to more than 25,000 retail doors spanning Whole Foods Market, Target, Walmart, Kroger, CVS, Walgreens, Sprouts, and Albertsons, plus e-commerce. The foodservice angle is substantial: United Airlines has distributed more than 175 million Undercover units since 2023 as a complimentary main-cabin snack, giving the brand rare trial velocity among high-frequency travelers and meaningful brand recognition that most emerging snack companies cannot replicate through retail placements alone.
The company operates a proprietary production facility — solar-powered, peanut-free, and tree-nut-free — with an in-house quinoa crisping operation that management cites as a key moat. All products carry non-GMO and certified gluten-free credentials and use Rainforest Alliance-certified cocoa, attributes increasingly demanded by both retail buyers and foodservice procurement teams navigating allergen and sustainability commitments.
Why the Mondelēz Fit Matters
For Mondelēz, with approximately $38.5 billion in 2025 net revenues across more than 150 countries, the acquisition follows a well-worn playbook: identify a high-velocity better-for-you brand with proprietary manufacturing, acquire control while preserving founder equity and culture, then apply enterprise-scale capabilities in procurement, shopper marketing, and international distribution. The North America Ventures structure insulates emerging brands from the margin and velocity expectations of Mondelēz's core biscuit and chocolate portfolio — a structural lesson the company learned through earlier acquisitions.
For Undercover, the upside is access to Mondelēz's global sales infrastructure at a moment when the permissible-indulgence segment — snacks that deliver sensory satisfaction alongside a cleaner ingredient story — is drawing outsized retailer and foodservice operator interest. Airport, airline, and travel-channel foodservice buyers have already demonstrated willingness to pay premium price points for the format; broader foodservice penetration across convenience, healthcare, and corporate dining represents a logical next chapter that would benefit directly from Mondelēz's national account relationships.
The deal reflects a broader consolidation trend in the better-for-you snack segment, where large CPG platforms are acquiring asset-light, founder-led brands rather than building from scratch. For operators and category buyers tracking the snack segment, Undercover's expanded backing signals accelerated SKU development and improved in-stock reliability — two pressure points that have historically constrained smaller brands competing for limited shelf and menu real estate.
For more context on M&A activity reshaping the snack and ingredient supply chain, see our coverage of emerging brand acquisitions and better-for-you channel trends.
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.
