Israel’s Eshbal Functional Food has contracted Canadian company Queen St Gluten Free to produce its gluten-free products for the North American market.
Under the deal, Queen St. Bakery will take on the production of Eshbal’s gluten-free pita bread.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Eshbal in a statement said further items from its “best-selling” range are expected to be added later.
The Israeli company will supply its own flour blend from its facilities, while other ingredients will be sourced locally in Canada.
Queen St. has “successfully completed” several trial runs. Subject to final packaging approvals, commercial production is planned for the first quarter of this year.
Eshbal said it chose Canada for production due to “favourable sourcing conditions” for gluten-free ingredients such as pulses and grains.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“This drives cost and quality advantages. The products can be delivered with supply-chain efficiency enabled by Toronto’s proximity to the US north-east states,” the statement added.
Avi Markus, the chief commercial officer of Eshbal for North America, said: “Working with Queen St. Bakery enables us to localise production, align shipment schedules and ensure first-rate quality with a trusted manufacturing partner.”
Eshbal produces gluten-free bakery products using natural ingredients such as teff and chia. Its vegan, low-carb and sugar-free portfolio also includes protein snacks and dietary supplements.
It owns the Barili brand of pita breads, buns and cookies, and also the Caragil line of flours and cake mixes.
While the company supplies foodservice and retail in Israel, it expanded into North America last year following a reverse takeover transaction with Canada-based Hakken Capital Corp. by which it gained a listing on the TSX Venture Exchange.
The agreement with Queen St. is Eshbal’s third North American transaction in six months.
In July, Eshbal acquired a majority stake in US low-carb and gluten-free producer Dare to Be Different Foods (D2BD), gaining distribution in Walmart and more than 300 additional stores in the northeast US.
Also in July, it signed a letter of intent to acquire Gluten Free Nation, a Texas-based commercial bakery specialising in gluten-free bread and baked products.
In November, Eshbal entered a deal with Florida-based Active Marketing Group to provide nationwide sales and marketing support across the combined product portfolio.
