What's Happening?
Prefer, a Singapore-based startup, has introduced soluble bean-free coffee and cocoa powders to assist food and beverage manufacturers in managing escalating prices and dwindling supplies of these commodities. The company has secured $4.2 million in funding from At One Ventures and Chancery Hill Ventures, bringing its total funding to $6.2 million. Prefer's innovative approach involves using a proprietary fermentation and roasting process to create its products, which are designed to be used as coffee extenders. This allows brands to blend up to 40% Prefer with regular coffee, reducing costs and emissions while maintaining flavor. The startup has also formed partnerships with Ajinomoto in Thailand and The Coffee Ferm in Australia and New Zealand to expand its market reach.
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Why It's Important?
The launch of Prefer's bean-free coffee and cocoa powders is significant as it addresses the challenges posed by rising commodity prices and supply shortages. By offering a cost-effective alternative, Prefer helps food and beverage companies reduce expenses while maintaining product quality. This innovation is particularly relevant in the current economic climate, where consumers are facing higher prices for everyday goods. Prefer's approach not only provides financial relief to manufacturers but also contributes to sustainability by reducing the agricultural footprint associated with traditional coffee production. The company's focus on affordability and taste aligns with the needs of major food companies, potentially leading to widespread adoption of its products.
What's Next?
Prefer plans to scale its alt-coffee production to 500 tons annually through toll manufacturing and licensing its intellectual property to food manufacturers. The company is also exploring the development of a highly concentrated version of its soluble coffee, which could be marketed as a 'natural flavor' in food products. As Prefer continues to expand its partnerships and production capabilities, it aims to make coffee more accessible to consumers worldwide, ensuring that the beloved ritual of coffee drinking remains affordable despite rising prices.
Beyond the Headlines
Prefer's technology has broader implications beyond coffee and cocoa. The fermentation and roasting process can be applied to other crops under threat, such as vanilla and hazelnut, offering a sustainable solution to flavor production. This innovation highlights the potential for alternative food technologies to address global supply chain challenges and environmental concerns, paving the way for more sustainable food systems.
