Publicly listed food company Goodman Fielder is to open a dedicated gluten-free bakery in Huntly later this month.
The bakery will be at the corporate's existing Huntly site. It's understood it will produce gluten-free versions of some of its popular brands such as Vogel's and Freya's.
A company spokesperson confirmed the plant was due to open in a few weeks.
Norm Holley, secretary of the Bakers and Pastrycooks Union New Zealand, said it would create new jobs.
"It's amazing that there's that kind of employment in Huntly."
Gluten-free products had to be made in a separate bakery to ensure there was no contamination, and it was not cheap to put in the plant.
Competitor George Weston Foods, which makes brands such as Tip Top and Burgen, opened a gluten-free bakery at its Wiri, South Auckland plant about two years ago, general manager of marketing Sandra Geange said.
The company makes five flavours of gluten-free Burgen loaves, and is looking at other products. It did not yet have a gluten-free bakery in Australia but was "working quite hard" to make that happen, Geange said.
"It seems to take them longer to get innovations like this off the ground. New Zealand has really been at the forefront in getting the gluten-free production out."
The company had seen outstanding growth in demand for the products, which were also yeast and egg-free.
It launched the bread through Coeliac New Zealand, a charity supporting people with coeliac disease who must eat a gluten-free diet.
"There's definitely a strong requirement among the coeliacs in New Zealand and also just generally among gluten-intolerant and allergy-concerned people."
Hannah Lee, manager of the Gluten Free Grocer in Eden Terrace, said it was often difficult to get a good range of truly gluten-free products, and the shop had customers from as far away as Christchurch.