Eshbal launches North American production   

CANADA – Canada has become the launchpad for Israeli gluten-free innovator Eshbal Functional Food Inc.’s North American manufacturing expansion through a strategic manufacturing partnership with Toronto-based Queen St. Gluten Free Inc.  

Eshbal supplies proprietary production equipment and its signature flour blend, featuring teff, chia, and pulses, to Queen St.’s specialized facility, enabling localized production of Eshbal’s bestselling gluten-free pita bread.   

Commercial runs commence in Q1 2026, pending final packaging approvals, slashing lead times and costs while targeting the US$15 billion US and Canadian gluten-free market, growing 12% annually amid celiac awareness and keto/low-carb trends.   

Eshbal, listed on the TSX Venture (ESBL) following its 2025 reverse takeover, specializes in vegan, sugar-free bakery products made with natural supergrains for authentic texture without gums or isolates.   

Queen St. Bakery, with proven expertise in pulse-based formulations, completed successful trial batches replicating Eshbal’s Barili pita breads, renowned in Israel for foodservice and retail.   

Toronto’s proximity to US Northeast distribution hubs, combined with Canada’s favourable gluten-free grain sourcing, optimizes supply chain efficiency compared to Israel-based exports.  

Additional products from Eshbal’s Caragil flours, buns, and cookies follow a phased rollout.   

Avi Markus, Eshbal’s Chief Commercial Officer for North America, highlighted operational leap: “Working with Queen St. Bakery enables us to localize production, align shipment schedules and ensure first-rate quality with a trusted manufacturing partner.”  

This marks Eshbal’s third North American milestone in six months: November’s majority stake in NYC’s Dare 2 Be Different Foods secured Walmart and 300+ Northeast stores; Active Marketing Group’s Florida deal drives nationwide sales. Queen St.’s FSSC 22000 certification ensures compliance with major chains’ requirements.  

The venture capitalizes on North America’s 1-in-133 celiac prevalence and 30 million carb-conscious consumers, where gluten-free breads command 40% premiums yet suffer 50% failure rates from poor taste/texture.   

Eshbal’s proprietary blends deliver pillowy pitas retaining moisture 3x longer, positioning against U2 Urban Bread and Base Culture.   

Initial volumes target Eshbal’s 2025 US traction, doubling since listing, via established channels while building private label capacity.  

This Canada-Israeli synergy exemplifies cross-border consolidation in fragmented gluten-free baking, where localisedlocalized production reduces duties and emissions by 25%.   

Tony Ayala, President of Queen St. Bakery, remarked: “We’re excited to partner with Eshbal to support the local production of their gluten-free Pita products. We believe these products fill a significant market gap. We look forward to working closely with the Eshbal team.”  

As CPG giants like Flowers Foods acquire organic players, Eshbal’s nimble M&A and tech-transfer strategy accelerates market share gains in a category ripe for authentic innovation.  

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