Profitable all-in-food tech co. plots M&A growth strategy

The Market Online

12-05-2025

Eshbal Functional Food Inc has recently listed on the TSXV and the company with profitable operations in Israel is now looking to expand into the fast growing, gluten-free North American market with an ambitious M&A strategy.
LYNDSAY: My first question is there, you have said actually many times, there is no one like us, so I'd love to hear more about that and what makes Eshbal so different?
TOMER: Perfect. I'll tell you what I think it is. First of all, we're an all-in-food tech company, and have been doing this for many years, everything from production, development is done in-house, which gives us full control and ensures we keep the highest standards for our products. Second, our focus is on Better For You Foods with a strong emphasis on gluten-free solutions.
We work to make products that taste and feel like the real thing, but without compromising on nutritional value or taste, which are very important. Third, we know from experience that we're not just making food, we're actually helping people with real dietary needs and that's why you focus on creating solutions, not just products.
And last, I would say unlike most food or biotech companies on the TSX Venture, which are often still pre-revenue or very early stage, Eshbal already has significant commercial activity with nearly $12 million, US dollars which are about 16 million Canadian dollars in revenues. And that makes us one of the few companies on the exchange with real sales, real operations and a strong foundation for growth.
LYNDSAY: Well, you've given so many positive facts, so why go the M&A route? What are the advantages?
TOMER: For us, M&A is a way to grow faster and smarter. Instead of building everything from scratch, we look to acquire companies with strong products, production, distribution, or market connections giving us a shorter time to market in quicker scale and is how we grew the business so far, and it's how we plan to keep on growing. In fact, I joined Eshbal through a successful acquisition back in 2016. We believe we know how to find the right fit and create value quickly.
LYNDSAY: Maybe you can then walk me through the kinds of companies you're targeting and what makes them so appealing.
TOMER: We're actually targeting two main types of companies. The first one is what we call brand companies. These are companies with existing sales market reach or distribution networks, companies that already have a customer relationship and know how to move product in North America, which is really important. The second type, we call operational companies. These are mainly manufacturers with proven capabilities, especially in gluten-free or better for you foods. This will help us create a footprint in the market, and the appeal is that we don't have to reinvent the wheel. We can plug into what already works, bring in our products and scale together, find businesses that create synergy where one in one equals three, that will help us promote our business quicker.
LYNDSAY: We know that you are in Israel and we also know that running a business in North America is a lot different than Israel. So how are you getting ready to navigate those cultural differences?
TOMER: There's definitely a cultural difference, things like communication style, decision making, and how relationships are built. That's why one of the first thing we already started is building a local team in North America who understands the business, business culture, and can help us bridge that gap. On the product side, however, especially in gluten-free, we actually see a lot of similarities. The needs are very close and we actually see a strong fit.
LYNDSAY: What should we be watching for with Bel in the next quarters?
TOMER: In the coming months, we're moving into commercial production in North America. We've already run successful tryouts with local co-producers, and we're now preparing to launch our gluten-free products through them. At the same time, we're starting to roll out our marketing strategy to introduce the product to the market. And the most exciting part on the M&A side, we're in active discussions with several potential targets and our goal is to complete at least one within the next few months.
You can find Eshbal on the venture exchange trading under the ticker symbol, ESBL, and their website is eshbalfoods.com
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