Mondelēz Bets on Cleaner Label With a Majority Stake in Undercover Snacks

Mondelēz International is investing in cleaner label. The company has agreed to buy a majority stake in Undercover Snacks, the New Jersey maker of quinoa crisps known for simple ingredients, and founder Diana Levy will stay on as CEO. It comes as Mondelēz plans a 2027 relaunch of Oreo that in some cases includes new formulas.

TLDR

• Mondelēz disclosed the agreement Oct. 29 with its third-quarter results and expects it to close in early 2027. The price and the size of the stake were not disclosed.
• Undercover says it is sold in more than 25,000 retail locations and that United Airlines has handed out more than 175 million units since 2023.
• Undercover’s Wicked Vanilla Drizzle crisp lists vegetable juice color, spirulina extract and turmeric extract.
• Oreo is nearing $5 billion in global revenue, Food Dive reported. Mondelēz called Undercover a small business growing very fast.

The Deal

In its Oct. 29 earnings release, Mondelēz said Undercover highlights its expansion in what it calls the permissible indulgence segment. CEO Dirk Van de Put said the brand’s chocolate and frosted varieties contain simple ingredients and that it has room to expand household penetration and distribution.

The deal is expected to close in early 2027, subject to closing conditions and regulatory approval. Undercover will run as a standalone business inside Mondelēz’s North America Ventures unit, alongside Perfect Snacks, Tate’s Bake Shop and Hu Chocolate. Diana Levy stays on as CEO, and Michael Levy, the executive chairman and lead investor, will continue to focus on growth, strategy and operations as president and COO. Both keep a significant minority stake and will sit on the board.

The Brand

Undercover’s announcement says Diana Levy founded the company in 2016 after two of her three teenage daughters were diagnosed with celiac disease. A 2021 company release said she launched it in 2017. The crisps are made at a dedicated peanut-free, tree-nut-free facility in East Hanover, N.J., and the company says its products are non-GMO and certified gluten-free and use Rainforest Alliance-certified cocoa.

Two Labels, One Portfolio

Stop & Shop’s listing for Undercover’s milk chocolate crisps shows two components, milk chocolate and quinoa. The Wicked Vanilla Drizzle crisp is described as having “natural frosting” with pink and green drizzle, and among its 13 ingredients are vegetable juice color, spirulina extract and turmeric extract.

Oreo’s website lists high fructose corn syrup, artificial flavor, Yellow 6 Lake and Yellow 5 Lake in limited-edition Orange Creme Halloween cookies. A Mondelēz spokesperson told The Epoch Times in September 2025 that the company is working on a transition to natural alternatives for its limited number of products with synthetic colors. FDA’s pledge tracker, current as of Oct. 16, lists that plan as in progress, with no target date. FDA has asked food companies to remove the six remaining synthetic dyes by the end of 2027, a voluntary target.

The Scale

Oreo is nearing $5 billion in global revenue, Food Dive reported in September. Mondelēz did not disclose Undercover’s sales. Van de Put told analysts it is a small business that is growing very fast, and Mondelēz management described the deal as on the smaller side. In September, Mondelēz’s Luca Zaramella told a Barclays conference that Oreo is growing in the mid-single digits this year and that a full relaunch is planned for 2027, with better packaging, more price points and, in some cases, new formulas that will result in better labels, Food Dive reported.

Why It Matters

Mondelēz is buying Undercover while planning, in some cases, new Oreo formulas. Neither announcement says whether Undercover’s recipes will change, or how the Oreo formulas will differ.

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Sources: Mondelēz Q3 2026 earnings release; Undercover Snacks announcement; Q3 2026 earnings call transcript; Food Dive; Undercover Snacks, 2021; Target; Stop & Shop; Oreo; The Epoch Times via NTD, 2025; FDA pledge tracker.