Eshbal Advances North American Growth Strategy with Planned Launch of U.S, Based Manufacturing of Eshbal Pita Bread and Strategic Acquisition
("Eshbal" or the "Company"), a developer of gluten-free and health-focused food products, is pleased to announce 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.
Gluten-Free Market Snapshot: North America Leading Global Demand
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%.1 North America continues to lead globally, accounting for 35.1% of total market revenue in 2024 and is expected to grow at a 9.3% CAGR through 2030.2
Within the category, baked goods are the dominant product segment, representing more than 31.5% of global gluten-free product sales in 2023, with further growth expected at a CAGR of 11.7% from 2032 to 2033.3 In North America, bakery products were also the largest and fastest-growing segment in 2024, led by increased consumer demand for alternatives that meet both health and lifestyle criteria.4
These trends are driven by increased awareness of celiac disease, gluten sensitivity, and broader lifestyle preferences. A growing number of consumers are seeking bakery products that replicate the taste and texture of traditional options, while also aligning with plant-based, clean-label, or reduced-carb dietary goals.
Planned Launch of Locally Manufactured Flagship Gluten-Free Pita Bread in North America
Eshbal is preparing to locally manufacture its gluten-free Pita Bread in the North American market. The upcoming launch marks the first time the Pita Bread will be manufactured and distributed locally in the United States. For more than a decade, the Pita Bread has been produced and exported from Israel to a California-based restaurant group, which has provided consistent and positive feedback. Eshbal views this long-standing relationship as a strong indicator of product-market fit and future commercial potential.
The Pita Bread formulation is entirely plant-based and gluten-free, and was developed in alignment with publicly available ingredient standards used by leading health-focused retailers, to avoid substances commonly listed as non-compliant.6
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 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.
Acquisition of Swonder Bread: Expanding into Sprouted Sourdough
On June 15th , Eshbal has 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.
Swonder's products are gluten-free, plant-based, and free from artificial additives. They are produced using a natural fermentation process combined with sprouted grains—a method known to enhance digestibility and nutritional value. These capabilities expand Eshbal's position in the clean-label and gut-health product space.
As consideration, 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.
Eshbal believes that Swonder's product line can be scaled with relative ease in the Israeli market given existing infrastructure and brand awareness. More importantly, the acquired IP and formulations are expected to serve as a foundation for potential future offerings in North America.
"From day one, M&A has been a key part of our strategy—and this transaction represents one of the many steps we intend to take," said Tomer Bar Meir, CEO of Eshbal. "Swonder Bread brings unique and hard-to-develop know-how that fits perfectly with our long-term goals. We see immediate opportunities to grow this business in Israel, and we believe the underlying technology offers exciting potential for future product development in North America as well"
