Eshbal Functional Food Inc. Announces Launch Of U.S. Based Mfg. And Strategic Acquisition

VANCOUVER — Eshbal Functional Food Inc., a manufacturer of gluten-free and health-focused food products, announces key developments supporting its North American expansion strategy: the planned commercial launch of its U.S. produced gluten-free pita bread, and the asset acquisition of Swonder Bread, an Israeli-based bakery specializing in sprouted gluten-free sourdough products.

The global gluten-free products market was valued at approximately USD 7.75 billion in 2024 and is projected to reach over USD 13.67 billion by 2030, growing at a CAGR of 10.0%, according to Grand View Research.

Eshbal says it is preparing to locally manufacture its gluten-free Pita Bread in the North American market.

The initial rollout of U.S. manufactured Pita Bread will be in frozen format to meet distributor requirements and ensure product integrity. In parallel, Eshbal says it is advancing development of an ambient, shelf-stable version that has, in testing, demonstrated several months of room-temperature shelf life. The Company believes this future format could enhance accessibility for retailers by reducing reliance on freezer space and streamlining logistics.

On June 15th, Eshbal said it also completed the acquisition of the operations of Swonder Bread, an Israeli bakery specializing in sprouted-grain sourdough and vegan breads. The acquisition includes all core assets — including proprietary recipes, trademarks, client base, production equipment, and inventory.

Eshbal will pay approximately CAD $150,000 over three years for the acquired assets based on a Swonder product’s revenue performance formula. The transaction is not considered material to Eshbal in terms of size, cost, or operational impact. It is an arm’s length transaction, and no finder’s fees were paid. To support a smooth transition, the founder of Swonder has agreed to sign a consulting agreement with Eshbal, which has a 36-month term, providing expert guidance on sourdough production, process integration, client onboarding, and marketing. The consulting agreement was signed on June 15th.