Prefer, a Singapore-based food tech startup, has successfully raised $4.2 million in a funding round that exceeded expectations, bringing their total funding to $6.2 million. This latest round was led by At One Ventures and Chancery Hill Capital, with participation from existing investor Forge Ventures. Alongside this funding success, Prefer has unveiled their latest breakthrough in the form of soluble coffee and cocoa powders created through a proprietary precision fermentation process.
The innovative aspect of Prefer’s products lies in their utilization of upcycled food manufacturing byproducts like rice and soy. These byproducts undergo fermentation and roasting to mimic the flavors and functions of traditional coffee and cocoa, all while significantly reducing the carbon footprint associated with their production. Life cycle analyses conducted by Prefer indicate that their coffee alternative emits up to 85% fewer greenhouse gases and is 50% more cost-effective compared to conventional Arabica coffee.
In addition to their technological advancements, Prefer has strategically positioned itself in the market by supplying its products to a diverse range of clients including FMCG brands, food manufacturers, private label retailers, and flavor houses. Recent collaborations with Singaporean food company Melvados have enabled Prefer to introduce their coffee products to the food service sector. Moreover, the company has forged international partnerships for expansion, teaming up with Ajinomoto Co. in Thailand to develop sustainable coffee innovations and Coffee Ferm in Australia and New Zealand to scale local production and distribution.
Looking ahead, Prefer aims to upscale its pilot production facility by partnering with toll manufacturers in key markets. The company is also committed to further research and development in cocoa flavor enhancement while strengthening global partnerships, particularly in the Asian market. By leveraging these strategies, Prefer is poised to solidify its position as a key player in the sustainable beverage industry.
Prefer’s mission goes beyond product innovation; it is deeply rooted in making coffee and cocoa accessible to a wider audience while upholding environmental sustainability. In a previous funding round in 2024, the company raised $2 million to expand the production of their bean-free coffee. This alternative not only addresses the issue of escalating coffee prices but also offers customizable caffeine levels to cater to diverse consumer preferences. Jake Berber, Prefer’s co-founder and CEO, emphasizes the importance of their partnerships, product quality, and team dedication in ensuring that everyone can enjoy coffee and cocoa responsibly.
Key Takeaways:
– Prefer’s breakthrough fermentation process transforms upcycled food byproducts into sustainable coffee and cocoa powders with significantly reduced carbon footprints.
– Strategic partnerships with industry leaders like Ajinomoto Co. and Coffee Ferm position Prefer for international growth and market expansion.
– Sustainable practices and accessibility are at the core of Prefer’s mission, driving their efforts to make quality coffee and cocoa products available to a broader market while prioritizing environmental well-being.
Tags: precision fermentation, scale up, food tech
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