A legacy of innovation in functional foods
Founded in the 1940’s, Eshbal Functional Food Inc. (TSXV:ESBL.V), has evolved from a local Israeli food producer into a cutting-edge food-tech powerhouse. Operating out of a 5,500 square metre state-of-the-art facility in Israel, the company specializes in the development and manufacturing of advanced healthier food products. Its diverse portfolio includes gluten-free, vegan, low-carb, sugar-free, and superfood-based offerings, as well as a growing line of nutraceuticals and dietary supplements.
With a reputation built on innovation, quality, and consumer wellness, Eshbal has become a trusted name in Israel’s functional food industry. The company’s vertically integrated model—encompassing in-house R&D, production, and quality control—ensures full oversight and consistency across its product lines.
A leap to global markets
In April 2025, Eshbal Israel became a wholly owned subsidiary of Eshbal Functional Food Inc., a Canadian public company listed on the TSX Venture Exchange. This strategic move marks a pivotal step in Eshbal’s journey to becoming a global leader in functional nutrition. The combined entity is now focused on expanding its footprint to North America.
The company’s Israeli operation is profitable, as you can see from the results below. This means it doesn’t need the public company’s funds to operate it and all funds raised, and to be raised, are all to promote its market expansion plans for gluten free baked goods into the North American market. Eshbal boasts a vast pipeline of healthy products to add as it moves ahead.
Eshbal’s mission is clear: to improve quality of life through better food choices and accessible functional solutions.
Q1 2025: Record-breaking financial performance
Despite incurring non-operating expenses related to its reverse takeover (RTO) transaction with Hakken, Eshbal Israel delivered a strong first quarter in 2025, showing the resilience and profitability of its core business.
Financial highlights
- Revenues: C$3.75 million, up 9 per cent from C$3.44 million in Q1 2024.
- Gross profit: C$1.098 million, a 21 per cent increase from C$908K, with margins improving from 26 per cent to 29 per cent.
- Operating profit: C$434K, up 24 per cent from C$351K, with operating margins rising from 10.2 per cent to 11.5 per cent.
- Working capital: C$1.63 million as of March 31, 2025, up from C$1.28 million at year-end 2024 (excluding April financing proceeds).
These results reflect not only seasonal strength—driven by demand for Kosher for Passover and gluten-free products—but also the company’s growing operational efficiency and market leadership.
Strategic growth and M&A outlook
Eshbal is actively pursuing both organic growth and acquisitions. The company is currently in discussions to acquire an Israeli business with proprietary know-how and early-stage sales in the plant-based health food segment, specifically- sprouted grain sourdough gluten free and vegan breads. This acquisition could significantly enhance Eshbal’s capabilities and product offerings ahead of its North American market entry.
In parallel, Eshbal is engaged in exploratory talks with several companies in the U.S. These potential partnerships and acquisitions are aimed at accelerating market penetration and expanding the company’s product portfolio and market reach. While there is no guarantee these discussions will result in finalized deals, they reflect a proactive and ambitious growth strategy.
Leadership perspective: A unique investment opportunity
Tomer Bar-Meir, CEO at Eshbal, emphasized the company’s unique position in the market in an exclusive interview with The Market Online:
“There is no one like this company. We are an all-in food-tech company with decades of experience. Everything—from production to development—is done in-house, giving us full control and allowing us to maintain the highest standards,” he said. “Our focus is on ‘Better for You’ foods, especially gluten-free solutions. We create products that taste and feel like the real thing, without compromising on nutrition or flavour. More importantly, we’re not just making food—we’re creating real solutions for people with dietary needs.”
Bar-Meir also highlighted Eshbal’s commercial maturity:
“Unlike many food or biotech companies on the TSX Venture, which are often pre-revenue or early-stage, Eshbal already has significant commercial activity—nearly US$12 million (approximately C$16 million) in revenues. That makes us one of the few companies on the exchange with real sales, real operations, and a strong foundation for growth.”
Why Eshbal Functional Food Inc. deserves your attention
Eshbal Functional Food Inc. offers a compelling investment case:
- Established operations with a proven track record in a high-growth sector
- Strong financial performance, even amid transitional costs
- Clear strategic vision for North American expansion and product innovation
- Strong Unique/IP products with high demand but low competition, as there are not many gluten free pitas available in North America
- Experienced leadership and a vertically integrated model that ensures quality and scalability
As global demand for health-conscious and functional foods continues to rise, Eshbal is well-positioned to capitalize on this trend—making it a standout opportunity for investors seeking exposure to the future of food-tech.
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This is sponsored content issued on behalf of Eshbal Functional Food Inc., please see full disclaimer here.
