Eshbal expands its growth strategy with Gluten-Free Pita bread local manufacturing in North America
To support this expansion, Eshbal has acquired the assets of Swonder Bread.
ISRAEL/CANADA – Eshbal Functional Food Inc., a gluten-free and wellness-oriented food producer, has officially launched its flagship gluten-free pita bread in the United States.
This marks the first time the company’s iconic product, long celebrated for its plant-based, gluten-free formulation, will be produced outside Israel, where it has been crafted for over a decade.
This strategic expansion is a significant step in supporting Eshbal’s North American expansion strategy.
The move comes amid surging demand for health-conscious baked goods across North America, where gluten-free products now represent over 35% of global market revenue.
Eshbal’s pita, known for its authentic taste and clean-label ingredients, will initially roll out in frozen format to meet distributor requirements, with a shelf-stable version in development.
To support this expansion, Eshbal has acquired the assets of Swonder Bread, an Israeli bakery specializing in sprouted, gluten-free sourdough and vegan breads.
The acquisition includes proprietary recipes, trademarks, and production equipment, reinforcing Eshbal’s commitment to gut-health innovation and clean-label excellence.
Eshbal’s acquisition of Swonder Bread comes with a measured financial commitment, about CAD $150,000 over three years, structured around product revenue performance.
The deal is considered minor in terms of Eshbal’s overall operations, conducted at arm’s length with no finder’s fees involved.
To ensure seamless integration, Swonder’s founder has entered a 36-month consulting agreement (signed June 15th), offering hands-on expertise in sourdough production, operational alignment, onboarding of clients, and marketing strategy.
This move underscores Eshbal’s commitment to maintaining product quality and brand continuity during the transition.
In 2024, the global gluten-free products market was valued at approximately US$7.75 billion and is projected to reach over US$13.67 billion by 2030, with baked goods leading the charge.
Additionally, last year, bakery goods emerged as the dominant and most rapidly expanding category in North America, driven by a rising appetite for products that align with consumers’ wellness goals and lifestyle choices.
These trends driven by rising health awareness and evolving dietary preferences are fueling demand for bakery items that mimic traditional flavors while meeting plant-based, clean-label, and low-carb criteria.
Eshbal’s pita is positioned to meet the evolving dietary preferences of consumers seeking alternatives that align with plant-based, low-carb, and allergen-friendly lifestyles.
As Eshbal prepares for its U.S. rollout, industry watchers are keeping a close eye on how this move could reshape the gluten-free bakery landscape. With its proven formula and fresh momentum, Eshbal’s pita is set to become a staple in health-focused households across the continent.
Last month, Eshbal finalised a binding letter of intent to purchase a 55% stake in Dare to Be Different Foods (D2BD), based in New York.
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