As Coffee Prices Rise, Prefer Bets on a Hybrid Future – Image for illustrative purposes only (Image credits: Pixabay)
Singapore-based Prefer has developed fermented extenders that let manufacturers blend up to 40 percent of their coffee and cocoa formulations with ingredients such as rice and chickpeas. The approach comes as climate shocks, disease, and supply volatility push commodity prices higher while demand continues to grow in emerging markets. Cofounders Jake Berber and Ding Jie Tan launched the company in 2022 after observing that consumers simply wanted their usual products to remain affordable rather than switch to entirely new alternatives.
Why Commodity Volatility Matters Now
Coffee and cocoa markets have faced repeated disruptions in recent years, with arable land shrinking and prices climbing sharply. In 2025 cocoa prices reached record levels, and similar pressures have affected coffee supplies across major producing regions. Manufacturers of instant coffee, canned lattes, chocolate milk, and confectionery items now face higher input costs that threaten margins and consumer access.
Prefer’s technology addresses these pressures by creating extenders that integrate into existing recipes without altering taste profiles in noticeable ways. The company’s customers are primarily food and beverage producers who can maintain product consistency while lowering reliance on volatile raw materials.
From Full Replacement to Practical Blends
Early development focused on a complete bean-free coffee substitute, yet market feedback quickly shifted priorities. Consumers do not seek novel replacements at the start of the day; they notice when prices rise month to month. This insight led Prefer to refine its fermentation process for hybrid use instead.
The resulting extenders draw on traditional practices, such as the long-standing use of chicory in Indian coffee blends during periods of scarcity. Modern fermentation techniques, however, produce closer matches to the aroma and flavor of the original commodities. Years of testing different microbes, enzymes, roasting conditions, and extraction methods have refined both sensory qualities and functional performance in finished goods.
Team Expertise and Funding Path
Berber, who grew up in Austin and played collegiate tennis before working in Israeli biotech and venture capital, met Tan in Singapore. Tan’s background in fermentation, earned through work with Michelin-starred restaurants and bars, earned him the informal title of “Prince of Fermentation” among colleagues. Their combined experience shaped a platform technology that began with coffee and cocoa but is designed for broader application.
The company has secured more than $6 million in funding, including a $4.2 million pre-Series A round led by At One Ventures and Chancery Hill Capital. Operations remain centered in Asia, where Prefer has already secured roughly $20 million in memoranda of understanding with regional partners. Berber has described coffee and cocoa as the initial applications of a fermentation platform that can extend to other ingredients facing similar supply challenges.
What matters now
Manufacturers can replace up to 40 percent of coffee or cocoa in formulations while preserving flavor, reducing exposure to price spikes, and maintaining supply stability for mass-market products.
Longer term, the same fermentation methods could support additional commodities under pressure from climate and market forces. The hybrid model keeps familiar products accessible without requiring consumers to change habits or accept lower quality. As commodity markets remain unpredictable, this approach provides manufacturers with a scalable tool to manage costs while demand continues to expand in high-growth regions.
