Introduction: Eshbal and Queen St. Bakery Team Up for North American Production
Eshbal Functional Food Inc., a leading manufacturer of gluten-free and better-for-you food products based in Israel, has announced a strategic production partnership with Queen St. Bakery, a Toronto-based producer of certified gluten-free baked goods. Under this collaboration, Queen St. Bakery will begin producing Eshbal’s popular Barili gluten-free pita bread. The companies also have plans to expand the product line in the future, adding more traditional Israeli offerings to cater to growing North American demand for gluten-free foods. This partnership is a crucial step for Eshbal as it looks to increase its presence in the North American market, tapping into the region’s expanding consumer base for healthy and allergen-free food options.
Production Start and Strategic Benefits
The collaboration between Eshbal and Queen St. Bakery is set to begin commercial production in Q1 2026, pending the final approval of product packaging. Eshbal has already confirmed that Queen St. Bakery successfully completed several trial runs of the gluten-free pita bread, with plans to scale up production. This partnership involves the transfer of proprietary production equipment and specific expertise from Eshbal, including its own gluten-free flour blend, sourced from Eshbal’s facilities in Israel.
Avi Markus, Chief Commercial Officer for North America at Eshbal, shared his enthusiasm for the collaboration, highlighting the significant strategic benefits. “This partnership is a milestone in our broader North American strategy,” Markus said. “Working with Queen St. Bakery allows us to localize production, streamline our supply chain, and ensure top-quality products for our growing customer base.” The alliance aims to not only enhance production capabilities but also ensure that Eshbal can maintain consistency and timely delivery across its North American markets.
Queen St. Bakery’s Role and Expertise
Queen St. Bakery, founded in 2018 by Giovanni Angelucci, has quickly made a name for itself in the gluten-free baked goods industry. Known for its range of products—including bagels, English muffins, bread, buns, and flour—the bakery has become a prominent player in the market by emphasizing high nutritional value and incorporating superfood ingredients like chia, flax, millet seeds, and sorghum. Their gluten-free products are sold in both retail stores and online across Canada and the United States.
Tony Ayala, President of Queen St. Bakery, expressed excitement about this new partnership, particularly the opportunity to fill a significant gap in the market for gluten-free pita bread. “Pita bread is a staple in many households, and we’ve seen a growing demand for gluten-free versions,” Ayala said. “By working with Eshbal, we can offer consumers a high-quality, delicious alternative while expanding our portfolio into more innovative and internationally inspired products.”
Why Canada?
Eshbal’s decision to partner with Queen St. Bakery in Canada was driven by several factors, including the availability of high-quality gluten-free ingredients such as pulses and grains, which are essential to their product offerings. The Canadian market also offers distinct logistical advantages, particularly the location of Toronto near the U.S. Northeast. This proximity ensures that Eshbal can optimize supply chain operations and meet demand across both Canada and the U.S. efficiently.
Additionally, Eshbal recognized that Ontario’s excess backhaul capacity offers further logistical benefits. With a streamlined transportation route from Canada to the U.S. food and beverage market, Eshbal can ensure faster restocking times and more agile responses to fluctuating demand, particularly from major U.S. retailers.
Eshbal’s North American Expansion
The collaboration with Queen St. Bakery is just one part of Eshbal’s broader strategy to expand its footprint in North America. The company has been actively pursuing a “roll-up strategy,” aimed at scaling its presence in the fragmented gluten-free and health-conscious food sectors. As part of this strategy, Eshbal has made a series of key acquisitions, including a majority stake in Dare 2 Be Different Foods, a New York-based maker of gluten-free, vegetable-forward frozen food products, in November 2025.
Eshbal has also made a move to expand its product portfolio with the acquisition of Swonder Bread in June 2025, a bakery that specializes in sprouted sourdough and vegan bread. Despite an attempt to acquire Gluten Free Nation in Houston, the deal was called off in September 2025, but this setback did not deter Eshbal’s broader expansion plans.
Moreover, Eshbal has worked with Active Marketing Group from Florida to provide nationwide sales and marketing support across North America. The company’s aggressive approach to scaling up its operations suggests that it is poised for long-term success in the competitive market for gluten-free and better-for-you foods.
Conclusion: A Strong Step Forward for Eshbal
Through its partnership with Queen St. Bakery and a series of strategic acquisitions, Eshbal is positioning itself for significant growth in the North American market. By localizing production and building a diverse portfolio of gluten-free and health-conscious products, the company is well-equipped to meet the increasing consumer demand for better-for-you foods.
This collaboration not only strengthens Eshbal’s ties to the North American market but also sets the stage for further innovation in gluten-free offerings. With continued expansion and a growing product lineup, Eshbal is poised to make a major impact in the food industry and further solidify its place as a leader in the global gluten-free market.
