It's for automatic pick-and-place PCB assembly.
In 99% of the cases, the LEDs have cut leads and are taped to a self adhesive band at the end of the leads and then be wound on a roll (or an "ammo-pack").
The PaP machine will unwind the roll, cut each LED and insert it into the PCB.
In this case the manufacturer opted for a simpler solution with a special leadframe instead of the tape. Cheaper? No idea.