Launching frozen isn’t just about keeping things cold. It’s a whole different business with its own costs, rules, and risks.
We break down what to expect, what to avoid, and how to build a brand that actually works in the freezer aisle.
For founders who are:
Launching or scaling a frozen food brand
Exploring a frozen line extension
Preparing to pitch frozen products to retail buyers
1. Selling frozen changes everything
Frozen runs on its own economics. If you don’t model them early, you’ll run out of cash fast. Here are the macro risks and realities you have to adapt to before you scale:
Cold-chain logistics: Do you have reliable temperature control from production to shelf?
Production complexity: Can you handle higher MOQs and limited co-manufacturers?
Storage + shipping: Have you priced frozen storage and insulated shipping?
Distributor margins: Have you factored in 20–35% fees (vs. 15–20% shelf-stable)?
Spoilage risk: Do you have a plan if product thaws or spoils in transit?
2. The cold truth about frozen costs
You’re not just paying for ingredients. You’re paying to keep your product cold 24/7. Here are frozen-specific costs that add up before your product hits shelves:
Frozen storage: Have you priced 3PL freezer space (monthly premium)?
Insulated shipping: Have you factored dry ice, liners, expedited delivery into unit costs?
Spoilage and melt risk: Do you have a contingency plan for lost revenue?
Retail launch costs: Slotting fees, free fills, chargebacks, and in-store promo spend — are these in your budget?
Commissions and cash flow: Brokers (5–7%), distributors (20–35%), and delayed retailer terms (Net 30–60).
What to do: Track costs by channel (retail, wholesale, foodservice). Don’t assume one set of numbers works across all.
3. Packaging makes (or breaks) frozen
When it comes to frozen products, retail buyers may never get to taste your product. Your packaging has to do the selling. Make sure it’s:
Clear: Can shoppers tell what it is in 3 seconds?
Bold: Does it stand out in behind foggy freezer doors from 3+ feet away?
Convenient: Stackable, easy to open, portioned for real use?
Competitive: Does it look at home next to established brands?
Compliant: Does it meet frozen + FDA labeling requirements?
Experience: Does the packaging (outside + inside) deliver a satisfying customer moment?
What to do: Work with a designer who has experience in frozen sets. And expect 6–8 week lead times for frozen-printed materials.
4. When (and when not) to sell frozen DTC
Shipping frozen direct-to-consumer is expensive, risky, and unforgiving, especially in warmer months. Make sure your bases are covered:
Summer risk: Have you tested shipping in warm weather? (30 minutes outside can ruin a box)
Logistics: Do you have insulated packaging + expedited delivery modeled in your unit economics?
Returns: Are you prepared for high replacement costs if product arrives spoiled?
Role of DTC: Are you using it for sampling, feedback, and early adopters — not volume?
What to do: Treat your website as a marketing hub, not a sales engine. Keep volume in wholesale, grocery, and foodservice where the cold chain is already built.
Checklist: Are you ready for the frozen food aisle?
Packaging designed for frozen sets and FDA compliance
Margin models include frozen storage, shipping, distributor + promo fees
Budget covers slotting, free fills, cash flow dips
Cold chain nailed before DTC or scaling shipments
Local launch tested for operations, pricing, sell-through
Bottom line: Frozen can be a profitable category for premium, innovative products. But only if you price, package, and plan for the cold costs that come with it.
Know someone trying to get their food brand off the ground? Do them (and us!) a favor and pass along this playbook.
