As the fastest growing vanilla brand in the U.S. natural channel, the company says, Beyond Good makes all of its confectionery vanilla and chocolate sustainably and ethically at the source in Madagascar. The country makes 70-80% of the world's vanilla, a popular flavor profile. In addition, Madagascar, the poorest country in the world, is also facing 47% tariffs. 

Beyond Good Founder and CEO Tim McCollum expects tariffs to increase the cost of vanilla at least 20%, and many companies are likely to simply swap the ingredient with a synthetic alternative. We were recently able to connect with McCollum to learn more about what will happen if the tariffs go into effect.

Liz Parker Kuhn: How will possible tariffs affect Beyond Good and the confectionery industry as a whole?

Tim McCollum: The Trump administration has essentially driven up the cost of vanilla by 47% for all U.S. importers, which will effectively knock U.S. manufacturing out of vanilla extract if it sticks. 

If that happens, European manufacturers will fill the void, and U.S. consumers will end up paying about 20% for it. American consumers can also expect to see a shift to synthetic vanilla as a cheaper alternative. 

Beyond Good is mapping out all possible scenarios over the coming weeks to mitigate the situation. The company remains as dedicated as ever to working in Madagascar and sustainably sourcing vanilla and chocolate there. 

LPK: Are there other countries that confectionery companies can source their chocolate from?

TM: Most American chocolate brands you see at the grocery store are sourcing commodity cocoa from West Africa—places like the Ivory Coast and Ghana. The cocoa is then sent off to manufacturing facilities elsewhere. We are the only U.S. company making chocolate directly at the source in Madagascar.

LPK: You formed your connection to Madagascar during a two-year stint as a Peace Corps volunteer there. Would Beyond Good consider going to another country for its cocoa?

TM: We sustainably source a portion of our cocoa directly from farmers in Uganda and import the raw ingredient into Madagascar for final processing. While we will continue working in Uganda, all of our chocolate and vanilla will continue coming from Madagascar. Today, our entire supply chain is based in Madagascar. We’ll accelerate our expansion plans into East Africa, but we won’t be changing our overall business model as a result of tariffs.

LPK: In the past, Beyond Good has partnered with contract manufacturers in Italy to produce its bars—is that something you’d consider doing again?

TM: We’re evaluating all scenarios. We’re not ruling anything out at present, but we’re set on our model of making chocolate at origin.

LPK: Madagascar makes 70-80% of the world’s vanilla, as well. Is there a synthetic vanilla flavor that companies can use? 

TM: A lot of companies already manufacture and market synthetic or imitation vanilla. The FDA has a Standard of Identity for vanilla extract. I think it’s the only product in a grocery store that has an FDA standard of identity, but you’ll want to double check that. You’ll often see products on the shelf labeled ‘‘Vanilla Flavoring” or “Vanilla Flavor.” This happens when vanilla prices increase, and they’re the first products to get taken off shelf when vanilla prices go back down. 

LPK: What is your prediction for tariffs and the confectionery industry for the rest of 2025?  

TM: Cracked crystal ball. Over the next 12 months, bilateral trade agreements will get worked out country-by-country. As that happens, you’ll likely see tariff rates for agriculture that is not grown in the U.S.—things like cocoa, spices, etc.—get reduced or eliminated.

LPK: Does Beyond Good have any upcoming products to be released this year?

TM: We will be debuting two new flavors to our flagship chocolate line—100% Cocoa Dates & Sesame and 73% Cocoa Orange Zest—and introducing a new MicroBatch Collection. Our MicroBatch Collection will be launching in four varieties with ingredients sourced locally from Madagascar and Uganda: Rum Raisins, Sea Salt & Nibs, Vanilla Bean, and Candied Ginger.

Related: Beyond Good receives Good Egg Award from Chocolate Scorecard