Israel’s Eshbal Functional Foods has partnered with Canada’s Queen St Gluten Free to produce gluten-free items for the North American food and beverage market. This collaboration marks a significant step in meeting consumer demand for gluten-free options in the food and drink business.
Under this agreement, Queen St. Bakery will manufacture Eshbal’s gluten-free pita bread, which is part of the company’s expanding range. Eshbal has announced plans to introduce additional best-selling items in the future.
Notably, Eshbal will provide its proprietary flour blend from its facilities. In contrast, other necessary ingredients will be sourced locally within Canada, leveraging the country’s advantageous sourcing conditions for gluten-free ingredients like pulses and grains. This strategy aims to optimize both cost and quality.
Queen St. Bakery has already completed several successful trial runs. If final packaging approvals are met, full-scale commercial production is slated for the first quarter of this year. Eshbal emphasizes the importance of having a manufacturing partner that ensures first-rate quality and efficient supply chain logistics, given Toronto’s proximity to the northeastern United States.
Avi Markus, Eshbal’s Chief Commercial Officer for North America, stated, “Working with Queen St. Bakery enables us to localize production, align shipment schedules, and ensure first-rate quality with a trusted manufacturing partner.” This partnership not only enhances operational efficiencies but also aligns with the evolving food and drink consumer trends in the region.
Eshbal specializes in producing gluten-free bakery items made from natural ingredients, including teff and chia. Their diverse portfolio features vegan, low-carb, and sugar-free options, alongside protein snacks and dietary supplements. Eshbal also owns the Barili brand, which includes pita breads, buns, and cookies, as well as the Caragil line of flours and cake mixes.
Although Eshbal has established itself in the Israeli market, the company made a strategic entry into North America last year through a reverse takeover with Hakken Capital Corp. This move facilitated its listing on the TSX Venture Exchange, reflecting a growing interest in food and beverage industry trends.
The agreement with Queen St. marks Eshbal’s third significant North American initiative within six months. In July, the company acquired a majority stake in Dare to Be Different Foods (D2BD), a U.S. producer of low-carb and gluten-free products, which enhanced its distribution channels, including Walmart and over 300 additional stores in the northeastern U.S.
Additionally, that same month, Eshbal signed a letter of intent to acquire Gluten Free Nation, a Texas-based bakery specializing in gluten-free bread and baked goods. In November, Eshbal also entered into a partnership with Florida’s Active Marketing Group, aiming to enhance nationwide sales and marketing efforts across its combined product portfolio.
This strategic approach demonstrates Eshbal’s commitment to growing its footprint in the North American food and beverage landscape while ensuring responsiveness to consumer demands and industry trends. As the market shifts towards healthier, gluten-free options, Eshbal is positioning itself as a key player in the ongoing evolution of the food and drink sector.
