Investment in Prefer totals $4.2 million; company unveils soluble, bean-free alternatives for coffee and cocoa powders.
Singapore-Based Startup Prefer Launches Sustainable Bean-Free Coffee and Cocoa Powders
In a groundbreaking move, Singapore-based startup Prefer has introduced soluble bean-free coffee and cocoa powders to the market. This innovative product, made via a proprietary fermentation and roasting process, significantly reduces environmental impacts and offers a more affordable, sustainable alternative to traditional coffee and cocoa.
Prefer's vision is to use its fermentation technology to create a portfolio of flavors and ingredients in a more affordable and sustainable way. The startup's technology allows it to use affordable ingredients and standard food industry equipment, making production scalable without the need for specialized equipment.
The key to Prefer's bean-free coffee and cocoa lies in the microbes used in fermentation and processing parameters. These microbes are responsible for the flavors and aromas that mimic those of traditional coffee and cocoa. The startup currently uses rice and soy in its default product, and has developed an allergen-free product that is soy-free.
Prefer's alt-coffee can be used as a coffee extender, allowing brands to stretch supply, reduce costs, and lower emissions. It is up to two times more affordable than a soluble arabica coffee, making it an attractive option for businesses looking to reduce costs while maintaining flavor.
The startup has already partnered with Ajinomoto, the market leader in ready-to-drink coffee in Thailand, and The Coffee Ferm for distribution in Australia and New Zealand. Prefer's primary focus is supplying B2B ingredients to food and beverage companies looking to replicate the taste and functionality of coffee and cocoa.
Prefer's technology has been in development for almost three years, studying what makes coffee taste and smell the way it does. The startup is exploring a highly concentrated version of its soluble coffee that could be listed as "natural flavor" in foods, further expanding its reach in the food and beverage industry.
By substituting even a fraction of demand for land-intensive coffee and cacao farming with Prefer’s products, deforestation linked to crop expansion can be curtailed, reducing overall greenhouse gas emissions associated with agricultural inputs and land use change. Prefer’s product also sidesteps the agricultural challenges driven by climate change, such as droughts severely affecting coffee crops, making it a more resilient and sustainable alternative.
In addition, Prefer’s business model supports scalability without requiring specialized equipment and promotes circular economy principles by upcycling ingredients that would otherwise be wasted or used as animal feed. They have also developed allergen-free formulas and are exploring the use of spent coffee grounds, further enhancing sustainability through food waste upcycling.
Overall, Prefer’s bean-free powders offer a durable environmental advantage by lowering carbon emissions, reducing reliance on vulnerable crops, minimizing waste, and potentially lowering production costs, positioning them as an eco-friendly and climate-resilient alternative in the global coffee and cocoa markets.
Prefer has recently raised a $4.2 million round led by At One Ventures and Chancery Hill Ventures, taking its cumulative funding to $6.2 million. The startup plans to scale its alt-coffee production to 500 tons annually via toll manufacturing and licensing its IP to food manufacturers. With its innovative approach and commitment to sustainability, Prefer is poised to make a significant impact in the coffee and cocoa industries.
[1] Prefer's press release: https://www.preferfoods.com/press-releases [2] Green Queen: https://www.greenqueen.com.hk/prefer-sustainable-bean-free-coffee-cocoa-powder/ [3] Prefer's whitepaper: https://www.preferfoods.com/whitepaper [5] Prefer's website: https://www.preferfoods.com/
- The startup, Prefer, has announced a strategic partnership with technology companies to develop advanced analytical tools, aiming to optimize production processes and minimize waste, further enhancing the financial feasibility and scalability of its business model.
- As Prefer's sustainable bean-free coffee and cocoa powders gain traction in the global market, finance and investment departments of major lifestyle brands are taking notice, recognizing the potential for increased profitability and reputation enhancement by adopting eco-friendly ingredients.
