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Prefer Secures $4.2 Million to Launch Bean-Free Coffee and Cocoa Powders Amid Rising Commodity Prices

WHAT'S THE STORY?

What's Happening?

Singapore-based startup Prefer has successfully raised $4.2 million in funding to launch soluble bean-free coffee and cocoa powders. This initiative aims to assist food and beverage manufacturers in managing the escalating prices and dwindling supplies of traditional coffee and cocoa commodities. The funding round was led by At One Ventures and Chancery Hill Ventures, with participation from Forge Ventures, bringing Prefer's total funding to $6.2 million. The startup has also established commercial partnerships in the Asia Pacific region, including collaborations with Ajinomoto in Thailand and The Coffee Ferm in Australia and New Zealand. Prefer's CEO, Jake Berber, emphasized the company's focus on expanding production and enhancing its technology to offer affordable and sustainable flavor solutions.
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Why It's Important?

The launch of bean-free coffee and cocoa powders by Prefer is significant as it addresses the challenges posed by rising commodity prices, which have been affecting the food and beverage industry. By providing an alternative that is up to two times more affordable than traditional coffee, Prefer offers a solution that could help manufacturers reduce costs and maintain supply chains. This development is particularly crucial as it supports the industry's need for cost-effective and sustainable ingredients, potentially benefiting both producers and consumers. The environmental impact is also noteworthy, as the production process aims to lower emissions and reduce the agricultural footprint.

What's Next?

Prefer plans to scale its alternative 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 may influence the broader market for coffee and cocoa, encouraging other companies to adopt similar sustainable practices.

Beyond the Headlines

Prefer's approach to creating bean-free coffee and cocoa powders highlights the potential for fermentation technology to revolutionize the food industry. By using affordable ingredients like okara and broken rice, the company not only addresses cost concerns but also contributes to sustainability efforts. This innovation could pave the way for similar advancements in other commodities facing supply challenges, such as vanilla and hazelnut, showcasing the versatility and potential of fermentation technology in food production.

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