‘Better-for-you’ chocolate snack maker Undercover Snacks has raised $13.7 million in equity for a minority stake in the company, as it looks to expand its operations and retail presence.
The equity investment was led by Octagon Capital Holdings, 900 Chocolate Investors and the company’s founders.
Undercover Snacks plans to use the capital to fund new marketing initiatives to support its growing retail footprint, including collaborations with major retailers and product launch campaigns.
The company is also looking to double production capacity at its facility in New Jersey, with the installation of additional production lines and automations.
Established in 2017, Undercover Snacks offers an allergen-free portfolio (expect dairy used in its milk chocolate snacks) of Chocolate Quinoa Crisps in a variety of flavours including dark chocolate and pomegranate, milk chocolate and currants, and seasonal variants such as dark chocolate and pumpkin spice, and milk chocolate and peppermint.
The snack manufacturer plans to continue rolling out new products and grow the management team.
“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.
She added: “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 favourable nutritional characteristics to the market.”
Andy Bluhm, managing member of 900 Chocolate Investors, said: “In a short timeframe, Undercover has not only created tremendous business momentum, but also the operational infrastructure to build a successful global brand.”
According to Undercover Snacks, the company doubled its distribution in June 2021 to over 10,000 retail locations across North America, plus additional retailers in an expanding number of countries overseas.
The snack company is also interested in growing its presence in alternative channels including corporate offices, airlines, entertainment venues and food service sectors.
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