Impact Leaders: Jake Berber, Co-founder & CEO of Prefer

In today’s episode of The Juice, the newsletter that brings you impact stories and journeys from global impact leaders, we had the pleasure of speaking with Jake Berber.

Jake is the co-founder and CEO of Prefer, a Singapore based startup on a mission to make more affordable and sustainable food and beverages. Their first hit product is a bean-free coffee created through fermentation and roasting.

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What inspired you to start Prefer, and what is your background?

I grew up in Texas, played tennis competitively, and earned a spot on the tennis team at Claremont McKenna in Los Angeles, where I studied neuroscience. I’ve always been passionate about science and entrepreneurship, coming from a family of entrepreneurs. After graduating, I joined a biotech medical device startup in Tel Aviv as one of the first team members. This experience taught me a lot about startups and that deep tech startups take a long time to see tangible results.

Around that time, I became interested in climate change, specifically in food tech. I joined a venture capital fund in Tel Aviv that invested in food tech startups. This role allowed me to explore innovations addressing climate issues in the food industry. I discovered how climate change threatens crops like coffee, cacao, hazelnut, and citrus and fast forward, that timeinspired me to co-found Prefer. I wanted to create sustainable and affordable alternatives for these at-risk flavors.

How did the transition to starting Prefer in Singapore happen?

While pursuing my MBA at Tel Aviv University, I had the opportunity to finish it at NUS in Singapore. Initially, I planned to be in Singapore for just a three-month exchange program. My role at the VC fund also wanted me to scout for promising food tech startups in the region. Shortly after arriving, a friend told me about Entrepreneur First, an accelerator program that provides funding and support to entrepreneurs. Intrigued, I applied and was accepted. The program started just two weeks later, and that’s where I met DJ, my co-founder.

DJ brought expertise as a flavor scientist, while I contributed my entrepreneurial background and passion for food and sustainability. Together, we brainstormed several ideas before settling on the concept of creating sustainable flavors to combat the challenges posed by climate change. Our shared vision was to use food and beverage as a scalable lever for climate impact. This collaboration marked the beginning of Prefer, which we officially started in late 2022.

Why did you choose to start with coffee and cacao?

Coffee was a natural starting point because of its universal appeal and personal meaning. I drink coffee daily, as does my co-founder, DJ. Coffee is also at significant risk due to climate change, with supply chains already experiencing disruptions and rising costs. This makes it an urgent problem to address.

From a business perspective, coffee serves as an excellent proof of concept. By building infrastructure to produce sustainable coffee alternatives at scale, we can refine our technology and processes to create other threatened crops, such as cacao and hazelnut.

Cacao, for instance, is already in R&D. The demand for cacao-free chocolate is immense, particularly as prices for raw materials surge. Our strategy is to tackle these challenges one crop at a time, ensuring each solution is scalable and impactful.

What’s the biggest challenge you’re currently facing?

Scaling production is not trivial and is our focus. The process involves a delicate balance of securing large purchase orders and ramping up production capacity. Many large buyers are excited about our product and its potential cost savings, but they often require us to scale production first to offer competitive pricing. On the flip side, scaling production requires a significant upfront investment, creating a chicken-and-egg problem.

To address this, we have relied on venture capital funding to fuel growth. Convincing investors requires demonstrating demand, potential scalability, and profitability. It’s a complex narrative that involves presenting clear proof points, including data on costs, taste tests, and customer interest.

Additionally, transitioning from selling to individual cafes to targeting larger buyers like FMCGs, ingredient companies, and coffee chains adds another layer of complexity. Each step involves navigating logistical challenges, building relationships, and proving our value proposition on a larger scale.

How do you approach team building and leadership?

Team building and leadership have been a learning experience for me as a first-time founder. My approach is hands-off and trusting, emphasizing autonomy and creativity of our amazing team. I believe in hiring people who are passionate, skilled, and self-driven. This allows me to focus on outward-facing activities like sales, fundraising, and marketing.

However, this approach has its challenges. Balancing external responsibilities with internal team management is something I’m continually working on. Despite these challenges, we’ve prioritized creating a work environment that’s dynamic and fun, where team members feel they’re contributing to something meaningful.

What’s your perspective on sustainability and consumer behavior?

One of the biggest misconceptions about sustainability is the assumption that consumers are willing to pay more for it. Based on my experience and countless conversations, the reality is that when it comes to food and beverage, the two primary factors that drive purchasing decisions are cost and taste. If a product doesn’t meet expectations in these areas, sustainability won’t persuade consumers to buy it.

For companies focused on sustainability, this is a critical insight. You can’t rely on sustainability as the sole selling point. Instead, you have to integrate it into an economically viable business model. The product has to be affordable and competitive in quality. At Prefer, for example, our coffee alternative isn’t just a sustainable option, it’s designed to solve price volatility in the coffee market. It’s cost-effective and high-quality, making it a compelling choice for mass-market consumers. Sustainability is a bonus, but it’s not the driver.

I’ve also learned that surveys claiming people are willing to pay more for sustainability are often misleading. Consumers might say they’re willing to spend extra in theory, but their actual behavior at the point of purchase is very different. Even a small price increase can be a dealbreaker, especially in markets like APAC, where value-driven purchasing decisions are the norm.

To succeed, sustainability-focused companies need to fit within the framework of capitalism. It’s essential to offer products that are not just sustainable but also deliver tangible benefits, whether it’s a better price, improved taste, or another advantage. I believe that building a business purely on the promise of sustainability without addressing these economic realities is not viable. Especially in a region like APAC, where people prioritize value, your product must align with both environmental and financial considerations to truly make an impact.

What’s your advice for aspiring impact-driven entrepreneurs?

Resilience is key. As an entrepreneur, you’ll face countless rejections and setbacks. The ability to bounce back and stay focused on your vision is critical. It’s also important to filter feedback carefully. While constructive criticism can be invaluable, not every opinion deserves equal weight. Stay true to your mission and use critical feedback as an opportunity to refine your approach.

Another piece of advice is to embrace the long game. Success in impact-driven ventures often takes time, and perseverance is crucial. Surround yourself with mentors and peers who can support you through the highs and lows. Remember, the longer you stay in the game, the greater your chances of achieving meaningful impact. Be the cockroach.

What’s the most significant lesson you’ve learned in your journey?

Taking risks early in my career has been very important. Moving abroad and joining startups right out of college gave me invaluable experience that I couldn’t have gained through a traditional career path. Entrepreneurship, in my opinion, isn’t as risky as it’s often portrayed. Even if your venture doesn’t succeed, the skills, network, and experience you gain make you highly valuable in the job market.

I’ve also learned the importance of adaptability. Startups require you to wear multiple hats, learn on the go, and constantly adjust to new challenges. This mindset has been instrumental in navigating the complexities of building Prefer.

How do you see Prefer evolving in the next five to ten years?

Our vision is to expand beyond coffee into other crops like cacao, hazelnut, and citrus. Each of these represents a significant opportunity to address supply chain instability and climate-related challenges. Over the next decade, we aim to establish Prefer as a leading technology provider for sustainable flavors, partnering with food and beverage companies worldwide.

On a broader scale, we hope to drive systemic change in the food industry by proving that sustainability and profitability can coexist. By addressing price and availability issues for mass-market consumers, we’re not only ensuring access to affordable flavors but also contributing to a more resilient and sustainable food system.

What’s your take on living and working in APAC?

Living and working in APAC has been an incredible experience. Singapore, in particular, offers unparalleled support for startups, from government initiatives to a vibrant entrepreneurial ecosystem. The region’s high-growth markets align perfectly with our business model, which emphasizes value-driven solutions.

Personally, life in APAC has been dynamic and fulfilling. I share a living space with three other founders and my girlfriend, which creates a unique and motivating environment. While work-life balance has been challenging, I’m deeply passionate about what I do, which makes the long hours worthwhile.

What’s the one thing you dislike about being a CEO?

Navigating legal work has been one of my least favorite aspects of being a CEO. The complexity of corporate documents and high-stakes agreements makes me nervous. Mistakes in this area can have significant consequences, which is why I approach legal matters with extra caution.

Currently, we work with specialized legal consultants for tasks like fundraising, intellectual property, and partnerships. While this approach works for now, I foresee the need for an in-house legal team as we scale further.

What’s your unique edge as an entrepreneur?

My willingness to take unconventional paths has been a defining factor in my journey. Moving to different countries, embracing startup roles, and taking risks early in my career have all contributed to my growth. These experiences have taught me to adapt quickly, think creatively, and approach problems with a global perspective.

Another edge is my ability to build relationships and connect with people. Whether it’s securing funding, collaborating with co-founders, or negotiating with buyers, the ability to communicate effectively and build trust has been invaluable.

What’s next for Prefer?

In the short term, our focus is on scaling production and securing large buyers to drive growth. We’re also raising our Series Pre-A funding round, which will provide the resources needed to expand our operations.

Beyond coffee, we’re looking to commercialize cacao and other at-risk crops. Our long-term goal is to build a scalable and impactful business that addresses critical challenges in the food industry while delivering value to consumers and partners alike.

🥭 The Juice: Wrap Up

I met Jake a few times in Singapore at various events and he always struck me as a very kind, humble yet extremely determined person. Imagine an American dude walking up to an Italian to tell him he’s making coffee without beans? That was a fun one. The issues that Prefer is tackling are still, inexplicably, not in mainstream conversations - that’s why I find this venture so fascinating.

My main 3 takeaways from this conversation are:

1-Your coffee comes with a lot of baggage, and we are blind to the cost of certain commodities.

The global supply chain of coffee is filled with unethical practices, tons of middle-men and fees across agents, and distributors. Add on top deforestation and the water consumption each cup of coffee requires, and it becomes clear that we can’t keep going with the current model ( you can read more here and here). Prefer is not even aiming at revolutionizing the model, but to build a completely separated alternative that no one ever managed to do before.

2-Sometimes you gotta be a “distant father” to your team

Coming from a place where I have spent the majority of my time working in the business, being busy with client deliveries and working on projects - I’ve found Jake’s words eye-opening and refreshing. His role as CEO has been almost solely outward facing and he did a fantastic job at it across the board, taking the company to the next level. So, as an early stage founder, don’t forget to raise your head, look ahead and balance between working in the business versus working on the business to fast track your success.

3- Forget that “consumers are willing to pay a premium for sustainable products” BS!

Everyone in sustainability heard at least once this quote from some McKinsey or Pwc or whatever consumer report. Well, forget about it - erase it from your memory if you want sustainable products to reach mass adoption. A premium price works for early adopters or very eco-conscious consumers, but if we want to make a shift at societal level, we must stop making products only for the sustainability niche and re-invent how we bring sustainability and impact into mass-scale production and consumption.

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We still love our beans coffee, but we do make sure to drink it in reusable cups to out out the waste ;) want to learn more about what’s behind this? Check our project with Muuse, an international leader in the reuse and return economy.