Eshbal Expands its Leading Position in the Better-For-You Market

TSXV: ESBL

VANCOUVER, BC, Dec. 18, 2025 /CNW/ - Eshbal Functional Food Inc. (TSXV: ESBL) ("Eshbal" or the "Company") is pleased to announce the launch of its newest gluten-free products under the best-selling Caragil and BARILI brands. The products are being distributed to stores throughout Israel.

The new items build upon the Company's 80-year tradition of high-quality, hand-crafted, Better-For-You and functional food products that don't compromise on nutritional value. The new products include Caragil gluten-free vanilla, chocolate and strawberry instant cream powders and crumble-style topping blends, and from BARILI, gluten-free Crackers in two versions.

The new items are produced at Eshbal's 60,000 sqft, purpose-built facility designed for commercial-scale production, utilizing proprietary formulations developed over 20+ years of Better-for-You R&D. Eshbal's controlled production process ensures consistent quality and authentic homestyle flavor through carefully sourced ingredients and specialized techniques - a combination that has distinguished the Company over multiple generations in the Israeli market.

 "Our launches in Israel reflect what we feel is a genuine consumer need for gluten-free solutions and showcase our ability to translate market feedback into products with real value," said Yiftach Keren, CEO of Eshbal Israel. "We believe that these same insights will serve us strongly in North America as well."

Why These Products, and Why Now

Eshbal observed what it believes to be increasing consumer interest in gluten-free everyday products for health-conscious lifestyles. The new products were developed based on the company's interpretation of consumer preferences for practical, better-for-you gluten-free options.

This product development approach reflects Eshbal's strategy: monitoring market dynamics, responding with quality solutions, and applying market insights as the Company expands in North America.

Product Highlights:

• Caragil Gluten-Free Cream Mixes: Chocolate, vanilla and strawberry jar-packed instant cream powder for filling & topping. Designed for use in cakes, pastries, and desserts. With a stable, cream-based texture and reliable performance, the mixes offer an easy and consistent home-baking solution that eliminates common challenges faced by gluten-free consumers.
• Caragil Gluten-Free Vegan Cake Crumble: A ready-to-use topping that replaces traditional biscuit Crumbles at home. Its uniform texture supports consistent baking results and creative dessert assembly.
• BARILI Gluten-Free Seed Crackers: A gluten-free cracker composed of 85% seeds and grains, with no added sugar. Developed as a wholesome everyday snack, it offers a crisp texture, rich seed flavor, and is packaged in reusable jars to preserve freshness.
• BARILI Gluten-Free Za'atar Crackers: A distinct gluten-free cracker seasoned with traditional za'atar that delivers a savory, aromatic profile and crisp texture. Packaged in reusable jars to maintain freshness, it is perfect for everyday snacking or pairing with spreads and dips.

North American Distribution

Eshbal's flagship gluten-free pita bread will be the first product to reach the North American market through the company's direct retail and e-commerce operations, alongside channels established by NYC-based Dare to be Different Foods, in which Eshbal recently acquired a majority stake, and Active Marketing Group, a major Florida-based food marketing and brokerage firm. To support its North American expansion, the company plans to commence local production in Q1 2026, strengthening its supply chain and market presence, with Eshbal's pita bread and future pending Innovative products.

About Eshbal Functional Food

Eshbal Functional Food is an innovative and profitable food-tech company that focuses on the gluten-free and "Better for You" categories. Eshbal generated over $11 million (USD) in revenue in 2024. Eshbal is pursuing a roll up strategy in the artisanal, gluten-free market to create a platform for mainstream grocers that delivers the scale and selection they require.  Its recent acquisition of Dare 2 be Different Foods gives the Company distribution in 500+ stores in Northeast USA.

To learn more, visit: https://EshbalFoods.com

Disclaimers:
Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release.

This press release contains "forward-looking statements" within the meaning of the securities laws. Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom

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SOURCE Eshbal Functional Foods Inc