Mondelez takes majority stake in snack maker Undercover Snacks

what happened

Mondelez International has become a majority investor in Undercover Snacks, a maker of snacks built on better-for-you ingredients. The brand is known for chocolate treats and crisps made from frosted quinoa. All its products are non-GMO, certified gluten-free, and made at a facility in East Hanover, New Jersey, that is free of peanuts and tree nuts.

The products are sold in more than 25,000 retail locations, with partners including Whole Foods Market, Target, Walmart, Kroger, CVS, Walgreens, Sprouts, Albertsons and Amazon. The snacks are also served to travelers on United Airlines each month. The information comes from Seeking Alpha.

Undercover Snacks will remain a standalone business led by its existing team, while gaining access to Mondelez's resources and expertise to speed up innovation, distribution and long-term growth.

why it matters

For markets this is a modest deal in the functional snacks segment. The text does not disclose a price, so its effect on Mondelez's financials is hard to gauge. The move signals that large snack makers continue to buy fast-growing brands positioned around healthier eating.

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