Undercover Snacks has raised $13.7 million of equity for a minority stake in the company.
Led by Octagon Capital Holdings, 900 Chocolate Investors and the company's founders, funds will be used for marketing initiatives to support the company's growing retail footprint, including collaborations with major retailers, campaigns to bolster upcoming product launches, expansion of the company's state-of-the-art SQF-8.1 production facility including additional production lines and automation, and investments in building the company's management team.
Terms of the equity financing were not disclosed.
"We are incredibly excited to have the support of strong and savvy investment partners along with the resources to build Undercover into a preeminent, global, better-for-you snack brand," said Diana Levy, founder, co-owner and CEO of Undercover Snacks. "With this equity investment, we will expand our production facilities and invest in our product development, marketing and sale strategies in order to continue to bring innovative and crave-worthy snacks with favorable nutritional characteristics to the market."
Launched by Levy in 2017, Undercover Snacks quickly established a foothold in the better-for-you snack and confections sector with its simple, yet uniquely delicious Chocolate Quinoa Crisps: crispy quinoa lightly covered in premium milk or dark chocolate.
Inspired to build a business after two of her three chocolate-obsessed daughters were diagnosed with Celiac disease, Levy focused on creating a line of snacks that not only tasted great, but also happened to be gluten-free, nut-free, and free of all major allergens except dairy used in the milk chocolate snacks.
With strong demand immediately after initially launching in Whole Foods Market's Northeast region, the company built its own state-of-the-art production factory in New Jersey in late 2018, obtaining the highest level of SQF certification available for food safety and quality in 2019 and each year since.
Most recently, Undercover announced that it had doubled its distribution in June 2021 to over 10,000 retail locations across North America, plus additional retailers in an expanding number of countries abroad. In addition to building its offline and online retail presence, the company is also focused on growing significantly in alternative channels including corporate offices, airlines, entertainment venues, food service sectors, and other places people consume snacks.
"In a short timeframe, Undercover has not only created tremendous business momentum, but also the operational infrastructure to build a successful global brand," said Andy Bluhm, managing member of 900 Chocolate Investors.
Undercover Snacks are sold on the company's website UndercoverSnacks.com, Amazon.com, and in grocery, drug, specialty and independent food stores in the U.S., Canada and abroad. The company's Chocolate Quinoa Crisps come in flavors including Milk Chocolate, Milk Chocolate + Currants, Dark Chocolate + Sea Salt, Dark Chocolate + Pomegranate, and Dark Chocolate + Blueberries. In addition, the company seasonally offers Dark Chocolate + Peppermint, Milk Chocolate + Peppermint, and Dark Chocolate + Pumpkin Spice.
