Most founders underestimate how brutal the frozen section really is. Margins are lean, distributors eat your profit, and one hot delivery day can wipe out your inventory.
Stephanie Berwick was working in fintech when she started competing in the World Food Championships.
Her chocolate ravioli was a crowd favorite, but the real competition started when she launched it as a frozen brand. After a few pop-ups and 150,000 ravioli made by hand, Pastazerts has grown from novelty to national, with distribution in 250+ stores.
Start by doing it yourself. Stephanie hand-made the first 150,000 ravioli in a commercial kitchen. âI wouldnât change a thing,â she says. âIf I hadnât done it myself, I donât think Iâd feel confident enough now to push back with manufacturers.â
Raise small, grow fast. Stephanie wasnât comfortable asking for money, so she raised $25,000 in debt from friends and colleagues. âItâs eye-opening to ask your former colleagues, former bosses, and parents and family for help,â she says. The money was gone immediately, but it took Pastazerts from 50 to 250 stores in four months.
Packaging is the first thing buyers look at. Some retail buyers will make decisions based on packaging alone, without ever tasting the product. âHiring a packaging designer is worth it,â Stephanie says. âThey know all the FDA rules, where the UPC needs to go, things most founders donât know, or donât want to know.â
Frozen food makes everything harder â and more expensive. Cold storage, insulated shipping, and higher distributor fees add up quickly. Even with fast delivery, a package left outside on a hot day can melt. Frozen DTC became too expensive to scale, and today, 95% of Pastazertsâ sales come from retail and foodservice.
Nothing beats an in-store demo. âDessert pastaâ is unfamiliar. But once people try it, they buy it. Stephanie does in-store demos herself or hires an agency to run them. Itâs an investment, but it works.
Market insight â The frozen aisle isnât just peas and pizza rolls anymore. Itâs a showcase for premium, global, and better-for-you innovation. But only brands that can manage costs and margins will last.
âNot your nonnaâs ravioliâ
The cold truth about frozen food costs
In frozen, youâre not just paying for ingredients. Youâre paying to keep your product cold 24/7. That adds up fast and eats into your margin long before you hit shelves.
Insulated shipping (dry ice, liners, expedited delivery)
Frozen 3PL storage
Spoilage and melt risk
Slotting fees (per SKU, per store, varies by chain + region)
Free fills (often one free case per store to launch)
Chargebacks (deductions for delivery or case errors)
Promo spend (discounts, demos, in-store ads)
Distributor fees (20â35% vs. 15â20% for shelf-stable)
Broker commissions (typically 5â7% of gross sales)
Are you ready for the frozen food aisle?
Launching a frozen product isnât just about keeping it cold. It means operating with a totally different set of rules, costs, and timelines.
Design packaging that stands out and complies with frozen + FDA standards
Build margin models with frozen storage, shipping, and fees included
Budget for promo support, free fills, and cash flow dips
Skip DTC unless youâve nailed cold-chain fulfillment
Start local to test operations, pricing, and sell-through before scaling