#Canada #Toronto #Eshbal Functional Foods #Queen St Bakery #Gluten-Free Production

Eshbal and Queen Street Bakery Collaborate for North American Production

Eshbal Functional Food Inc. (TSXV: ESBL) is thrilled to announce a strategic partnership with Queen St Gluten Free Inc. in Toronto, Ontario, effective January 1. This collaboration aims to bring Eshbal's range of gluten-free products to the North American market, focusing primarily on their renowned gluten-free Pita Bread.

Agreement Highlights

Under the terms of the agreement, Queen St Bakery will manufacture not only Eshbal's gluten-free Pita Bread but also an assortment of other popular Israeli products in the near future. As part of this partnership, Eshbal is supplying proprietary production equipment to Queen St's facility and has engaged its R&D team to offer specialized knowledge for ongoing production processes. Eshbal will also provide its unique flour blend from its facility, ensuring high-quality ingredients, while other ingredients will be sourced locally.

Queen St. Bakery has successfully conducted several trial runs, and once final packaging approvals are in place, commercial production is anticipated to commence in the first quarter of 2026.

A Commitment to Gluten-Free Quality

Queen St Bakery's inception was sparked by the demand for gluten-free baked goods that do not compromise on taste or nutritional quality. Their products, which include breads and bagels, are made with simple, certified gluten-free ingredients, and are available both online and across retail locations in Canada and the US.

Advantages of Canadian Manufacturing

Choosing to establish local production in Canada was a strategic move for Eshbal. The country presents advantageous sourcing conditions for gluten-free ingredients, such as pulses and grains, which not only drive down costs but also enhance quality. Moreover, the proximity of Toronto to the US Northeast paves the way for efficient supply chains. Given the existing excess backhaul capacity from Ontario to various parts of the US market, including California, Eshbal can ensure timely delivery to mainstream US grocers, crucial for real-time restocking.

Expanding Partnerships and Market Reach

The alliance with Queen St Bakery marks the third major transaction for Eshbal in North America within just six months. In November, Eshbal acquired a majority stake in Dare 2 Be Different Foods, a New York City-based company. This acquisition significantly broadens Eshbal's product range and provides access to distribution channels, including Walmart and over 300 additional retail locations in the Northeastern US. Alongside this, Eshbal has also partnered with the Florida-based Active Marketing Group to enhance nationwide sales and marketing support across its product catalog.

Eshbal continues to implement its roll-up strategy within the fragmented artisanal gluten-free sector to achieve the scale required by mainstream grocers.

Tony Ayala, the President of Queen St Bakery, expressed his enthusiasm, stating, "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 gap in the market and look forward to a fruitful collaboration."

Avi Markus, Chief Commercial Officer of Eshbal for North America, added, "This agreement signifies an important operational milestone for us as we work towards building our North American platform. Partnering with Queen St Bakery allows us to localize production, align shipment schedules, and maintain top-tier quality through a trusted manufacturing ally."

About Eshbal Functional Food

Eshbal Functional Food is an innovative company dedicated to the gluten-free and 'Better for You' food categories. The firm is actively acquiring companies in the artisanal gluten-free sphere to create a robust platform that meets the needs of mainstream retailers. For more information, visit Eshbal.com.