Singapore-based alternative beverage company secures $4.2 million in financing for coffee and cocoa products sans beans
Singapore-based food tech startup Prefer has announced that it has raised $4.2M in pre-Series A funding. The funding round was co-led by At One Ventures and Chancery Hill Capital, with additional participation from existing investor Forge Ventures.
Prefer, known for its bean-free coffee alternatives, plans to keep its headquarters and R&D capabilities in Singapore, leveraging the community support from Enterprise Singapore and A*STAR. The company's focus for the next 18 months is Asia, but it is open to and actively accepting inbound interest from US and EU companies looking to license its technology for local manufacturing.
Prefer is scaling up pilot production to 500 tonnes annually using toll manufacturers and by licensing IP to food manufacturers. The company is also deepening its R&D into cocoa flavor development and expanding global partnerships with a focus on the Asia-Pacific region.
Prefer's manufacturing and regulatory requirements are no more complex than those of a conventional bakery or brewery. The company's bean-free coffee portfolio, including roasted and ground coffee, concentrates, ready-to-drink lattes, and a soluble coffee powder, are 50% cheaper than arabica on average and have an 85% lower carbon footprint.
Prefer has signed commercial deals for its beanless coffee with Ajinomoto in Thailand and CPG brand The Coffee Ferm in Australia and New Zealand. The Coffee Ferm is licensing Prefer's intellectual property to manufacture and distribute Prefer coffee for these regions.
Prefer's cocoa-free powder will initially launch as a B2B ingredient. The company has also launched its bean-free cocoa powder and soluble 'coffee extender'. Prefer has commercialized its coffee alternatives through foodservice channels via ice cream partnerships with local companies Melvados and Kind Kones.
In five years, Prefer sees itself as a global leader in flavors and ingredients, helping the food industry lower costs and reduce its carbon footprint. The company's strength lies in its fermentation-based flavor creation, focusing on cost and taste above all.
The investment company that participated in Prefer's current funding round and also supported Chancery Hill Capital in the financing round is At One Ventures. The Japanese conglomerate Ajinomoto has also signed several partnerships with sustainable food brands globally.
Prefer's products are sold in 75 locations across Singapore, with another 25 set to be added by the end of the year. Anay Mridul, the website's resident news reporter, originally from India, and passionate about coffee, plant-based milk, cooking, eating, veganism, food tech, writing, and the Oxford comma, covers this story.
Prefer is not the only startup exploring bean-free versions of cocoa and coffee. US firms Voyage Foods and Compound Foods, Atomo, Northern Wonder, and Koppie are working on coffee alternatives, while Planet A Foods, Foreverland, Nukoko, Endless Food Co, Win-Win, and several others are innovating with cocoa-free chocolate. This shows the growing interest and investment in sustainable and cost-effective food alternatives.
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