Eshbal enters sales, marketing deal with Active

Executive Summary

• Eshbal Functional Food Inc. has entered into a sales and marketing agreement with Active Marketing Group (AMG) to represent its flagship gluten-free Barili products and future products in the United States market.
• This partnership marks Eshbal's first scaled entry into the U.S., leveraging AMG’s 37-year history and relationships with major grocery, natural, mass-market, online, and specialty retailers.
• The agreement is a key pillar of Eshbal’s corporate growth strategy to bring its 20-plus-year developed gluten-free products to Celiac and gluten-averse consumers in North America.

Key Details

• Partnership: Agreement signed with Active Marketing Group (AMG), a leading U.S.-based consumer packaged goods marketing and brokerage firm.
• Products Covered: AMG will represent Eshbal's flagship gluten-free Barili products and additional products intended for the U.S. market.
• Strategic Goal: First scaled entry into the United States market; aims to build distribution and brand awareness in the "better-for-you" food category.
• AMG Capabilities: 37-year history of placing goods in large grocery, natural, mass-market, online, and specialty retailers.
• Equity Compensation: Eshbal granted an aggregate of 1.26 million incentive stock options and 741,000 restricted share units (RSUs) under its omnibus incentive plan.
  • Options: 560,000 granted to directors and officers; exercisable at $0.25 per share for up to five years.
  • RSUs: 621,520 granted to directors and officers.
    • 251,520 RSUs: 50% vest immediately, remainder in six equal monthly installments.
    • 490,000 RSUs: Vest in equal monthly installments over 12 months.
• Company Financials: Eshbal reported 2024 revenues of more than $11 million (U.S.).

Notable Quotes

• Todd Grisoff, President of AMG: "Eshbal's pita delivers the closest experience we've seen to traditional bread in a gluten-free format -- both in taste and texture... It's what we call smart eating -- and for retailers, a smart choice."
• Avi Markus, Chief Commercial Officer, Eshbal: "This partnership marks an important milestone in our go-to-market plan for North America. AMG's deep relationships with major retail buyers, coupled with their strong track record of driving sell-through, creates a strong foundation for the U.S. launch of Barili and other Eshbal brands."
• Tomer Bar-Meir, CEO, Eshbal: "Bringing our top-selling products into the North American market is a key pillar of our corporate growth strategy. Our products, developed over 20-plus years, maintain the texture and nutritional value of gluten-containing analogues, and we're delighted to be working with AMG to bring these products to Celiac and gluten-averse consumers throughout the United States."