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Mondelēz International has agreed to acquire a majority stake in better-for-you brand Undercover Snacks, alongside reporting its third-quarter financial results for the period ended 30 September 2026.
The transaction, which is scheduled to complete in early 2027 subject to customary closing conditions, will integrate the chocolate-coated quinoa crisp manufacturer into Mondelēz's expanding global snacking architecture. The move reinforces the company’s portfolio in the fast-growing "permissible indulgence" category, targeting mainstream consumers seeking portion-controlled treats made with simple, allergen-friendly ingredients.
The takeover announcement coincided with the group's third-quarter earnings release, where adjusted earnings per share reached $0.78, beating consensus market estimates of $0.71 per share. Net quarterly revenues rose 2.4% year-on-year to $9.97 billion, supported by broad-based volume growth and market share gains across core categories in developed and emerging markets.
"We are delighted to announce our recent agreement to acquire Undercover Snacks, a delicious, crunchy quinoa crisp line that highlights our continued expansion in the high-growth permissible indulgence segment," said Dirk Van de Put, Chairman and Chief Executive Officer of Mondelēz International.
Undercover Snacks
Founded in 2017, Undercover Snacks manufactures certified gluten-free, allergy-friendly crispy quinoa snacks enrobed in chocolate and frosted confectionery coatings.
The product lineup utilises simple, minimally processed ingredient decks designed to deliver crunchy textures with natural fibre and protein:
🍫 Dark Chocolate & Sea Salt Quinoa Crisps: Puffed crispy quinoa coated in dark chocolate and sprinkled with sea salt flakes.
🥛 Milk Chocolate Quinoa Crisps: Combines crispy puffed quinoa with creamy milk chocolate in portion-controlled bites.
🍒 Dark Chocolate & Blueberries / Cherries: Pairs chocolate-enrobed crispy quinoa with real dried fruit pieces.
🍩 Frosted and Seasonal Varieties: Includes Dark Chocolate Churro, seasonal Milk Chocolate Peppermint, and frosted snack formats.
Undercover Snacks operates dedicated manufacturing facilities free from the top eight common allergens, including peanuts, tree nuts, and wheat. Mondelēz confirmed that the brand has achieved rapid consumer adoption across North American grocery, mass, and convenience fixtures, presenting immediate commercial opportunities to expand household penetration and leverage Mondelēz's retail distribution scale.
Third-Quarter 2026 Financial Performance
Mondelēz’s core financial indicators for the third quarter highlighted pricing realisation alongside resilient snacking volume:
Net Revenue: Reached $9.97 billion, up 2.4% from $9.74 billion reported in the prior-year period.
Operating Profit and Earnings: Net earnings reached $1.31 billion, climbing from $746 million in the corresponding period of 2025. Adjusted operating EPS rose 5.5% on a constant-currency basis to $0.78.
Regional Momentum: Organic net revenue expanded across North America, driven by disciplined pricing execution to offset agricultural commodity input costs, while emerging market operations maintained volume momentum in core chocolate and biscuit categories.
The business continued to channel operating cash flows into targeted brand marketing, manufacturing line automation, and direct-store-delivery (DSD) route density throughout the quarter.
Portfolio Rebalancing
The planned acquisition of Undercover Snacks aligns with Mondelēz’s long-term Vision 2030 corporate strategy, which focuses on generating 90% of group revenue from core chocolate, biscuit, and baked snack platforms while selectively scaling high-margin, health-adjacent snacking concepts.
As commercial chocolate manufacturers navigate elevated cocoa prices and consumer scrutiny over ingredient sourcing, integrating grain- and seed-based carriers, such as puffed quinoa, allows processors to reduce total cocoa solids per portion while providing satisfying crunch and permissible confectionery credentials.
By taking a majority stake in Undercover Snacks, Mondelēz secures an established platform capable of capturing trade-up spending from wellness-focused consumers without cannibalising its legacy confectionery franchises, including Cadbury, Milka, and Toblerone.
The transaction is expected to close in early 2027, with Undercover Snacks continuing to operate under its existing brand identity while integrating into Mondelēz's North American commercial network.
