US food company Beleaf is ensuring customers have affordable plant-based meats by freezing its pricing until 2026 in the face of tariffs, as the company finds an opening in private label.
In 2017, husband-and-wife team Jason and Mary Chiu launched Beleaf in California, as the spin-off of a Taiwanese food manufacturer operated by Jason’s father. Beleaf produces konjac-based salmon and shrimp and plant-based chicken, beef slices and jerkies for the US market.
On hearing about the tariffs, Jason Chiu and his father worked out a deal where the Taiwan manufacturing and US branded sides of the business would each pay 5% to counteract the 10% across-the-board tariffs the Trump administration imposed in April.
The Trump administration paused a reciprocal tariff plan that would levy an additional 32% tariff on Taiwanese goods entering the US. The 90-day tariff pause ends on July 8 but depends on ongoing trade talks.
Beleaf froze prices to offset potential sales implications because tariffs could result in fewer sales, and ultimately, job losses, Jason noted.
Tariffs add pressure to the pricing of plant-based meats, which is often cited as a category barrier, Jun Roxas, marketing consultant for Beleaf, explained.
“Plant-based has always had a challenge with is price parity. So, plant-based meats are not exactly cheaper or a lot cheaper than animal-based, so that has always been something that has been a challenge for the category,” Roxas elaborated.
Can private labels save plant-based?
Beleaf operates across retail, foodservice and private label, with private label becoming an increasing part of the company’s business, Roxas noted.
“Private label is really one area that we were already doing well in,” Roxas said. “With our ability to manufacture pretty much anything plant-based, it made sense for us to put more effort into that side of the business.”
“We do shrimp, not a lot of people realize that you can get plant-based shrimp,” he added.
Beleaf’s products also are tapping into consumer demand for allergen-free products, including the 3% of US consumers who are allergic to shellfish, Roxas said.
Beleaf is bolstering innovation across its business and will release more new products this year, Jason Chiu said. Recently, Beleaf developed a plant-based hot dog with a similar taste and texture as a 7-Eleven hot dog, creating a prototype within two weeks, Jason Chiu noted.