Southeast Asia’s Prefer Launches Innovative Bean-Free Coffee and Cocoa Solutions Amid Supply Challenges

Singapore-based startup Prefer has introduced a novel range of soluble, bean-free coffee and cocoa powders, designed to assist food and beverage manufacturers in overcoming the rising costs and dwindling supplies of these cherished commodities.

In conjunction with this launch, the company successfully secured a $4.2 million funding round, primarily spearheaded by At One Ventures and Chancery Hill Ventures, with additional participation from Forge Ventures. This investment brings the startup’s total funding to an impressive $6.2 million.

This funding comes shortly after Prefer inked two significant commercial partnerships aimed at amplifying its presence in the Asia Pacific region. One partnership is with Ajinomoto, the leading market player in ready-to-drink coffee in Thailand, to co-develop coffee beverages. The second partnership involves a new entity known as The Coffee Ferm, which will produce Prefer’s bean-free coffee products under license for distribution in Australia and New Zealand.

“This funding allows us to scale production, enhance our technological advantage, and collaborate with food and beverage companies,” stated Prefer co-founder and CEO Jake Berber. “We also aim to intensify our research and development efforts in cocoa flavor innovation. Our vision involves using fermentation technology to create a diverse range of flavors and ingredients sustainably and affordably.”

“Our investment in Prefer highlights the urgent need to reduce the agricultural footprint of our food system, as well as our belief that this team can deliver an equivalent flavor experience with a significantly lower environmental impact while providing cost savings for customers.” – Helen Lin, Partner, At One Ventures

Hybrid Solutions for Cost-Efficient Coffee Production

Founded in 2022 by Jake Berber and Ding Jie Tan, Prefer utilizes a proprietary fermentation and roasting process to create its bean-free products.

While the company has introduced ready-to-drink products in Singapore, primarily to showcase consumer interest, its main objective is to provide B2B ingredients for businesses wanting to replicate the taste and functionality of traditional coffee and cocoa.

Berber elaborated that Prefer plans to scale its alternative coffee production to 500 tons per year through toll manufacturing and by licensing its intellectual property to food manufacturers. “Prefer can serve as a coffee extender, allowing brands to mix our product with regular coffee. This approach enables them to stretch supplies, cut costs, and reduce emissions,” he noted.

Prefer currently offers two main products: ground coffee that integrates seamlessly with regular ground coffee and a new soluble coffee that is designed for use in instant coffee, ready-to-drink products, and other applications that leverage soluble coffee.

“Our goal is to create hybrid, blended products,” said Berber. “Research indicates that blending up to 40% of Prefer with 60% coffee does not affect flavor. This allows for a more affordable coffee option, which is up to twice as cost-effective as soluble arabica coffee.”

With $15 million worth of memoranda of understanding (MOUs) in place, Berber revealed that approximately $10 million was secured based on the development of a soluble powder. This strategic move helps fast-moving consumer goods (FMCG) companies reduce their costs in popular formats, such as instant coffee and ready-to-drink beverages.

He further emphasized, “We’re here to support the food industry, not disrupt it. Our aim is to ensure that coffee remains accessible to everyone, especially as rising costs risk pricing out the mass market. Collaborating with leading coffee companies allows us to create hybrid products that guarantee consumers can continue enjoying this beloved ritual.”

Short Ingredients List with Minimalist Approach

Unlike other alternative coffee startups that often incorporate an extensive list of ingredients, Prefer focuses on a simple combination of okara (a byproduct of tofu) and broken rice for its alt-coffee, while maintaining other undisclosed ingredients for its alt-cocoa.

“The unique flavors and aromas stem from the microbes employed in the fermentation process,” Berber explained. “We don’t need specialized equipment, as our setup is tailored for B2B and allows scalability via toll manufacturers or licensing our technology to other food companies.”

He added, “Currently, our basic product uses rice and soy, but we’ve also developed an allergen-free version that’s soy-free, although I can’t disclose the other ingredient just yet.”

Prefer’s technology is versatile, with projects underway using spent coffee grounds as one of the ingredients, alongside rice and okara.

A Sustainable Approach with a Focus on Flavor and Cost

While numerous startups have entered the alternative coffee landscape, Prefer prioritizes price and taste, aligning with the needs of major food companies. “The sustainability aspect is a bonus, but our primary focus is on cutting costs while preserving flavor integrity,” Berber asserted. “Our robust technology allows us to utilize affordable ingredients, further enhancing our competitive edge.”

Berber concluded, “Our efforts in blind taste tests have yielded impressive outcomes. Over the past three years, we’ve dedicated ourselves to understanding the nuances of coffee flavor and aroma. Our aim is to replicate these sensory experiences through strategically controlled fermentation and roasting processes.”

“The beauty of our technology is that it’s adaptable beyond coffee; we aim to extend it to cocoa and other threatened crops like vanilla and hazelnut.”

Further Reading

• Belgian startup Koppie emerges from stealth to disrupt alt-coffee market with single-ingredient offering
• Compound Foods launches ingredient platform to future proof coffee and cocoa
• Atomo beanless coffee makes UK debut, but firm will ‘not be profitable on the back of small coffee shops’
• Is plant cell culture a scalable way to futureproof cocoa and coffee?