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Empowering Small Producers: How Delivered Cold Promotes Direct-to-Consumer Sales

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Over the years, but especially since working from home has become more of the norm, home delivery of food products has experienced a rapid rise in popularity. The frozen food market has seen considerable growth and is set to reach $432.55 billion by 2030 — a significant portion of which is the home delivery market.

Busy lifestyles and a desire for a wider variety of food have led people to seek the services of several home-delivery options that can deliver everything from meat to vegetables right to their door. However, the traditional direct-to-consumer frozen food market has one major downside: most are limited to one supplier per box.

Ruben Cortez, the entrepreneur behind Frozen Logistics, saw an opportunity to expand the frozen food delivery business and solve a number of pain points in the direct-to-consumer space. Cortez brings his years of experience in the entrepreneurial, technology, investment, and real estate spaces to change the traditional direct-to-consumer frozen food delivery space.

Cortez has recently unveiled Delivered Cold, a revolutionary new direct-to-consumer option that allows shoppers to add products from multiple different sellers in the same box, solving what he sees as an obvious issue with the traditional market. “We’re giving customers more options to fill their box with a variety of items they may not find elsewhere with this option,” he says, “making it easier to check out new products without a large cost commitment.”

Different from the competition

Many competing home delivery food companies often only cater to one type of consumer, whether by offering vegan options, ready-to-serve meals, or specialty products. On the other hand, Delivered Cold’s approach to home delivery, is far more streamlined.

“We are setting out to shake up an industry in need of disruption,” says Cortez. The way Delivered Cold operates is simply not possible in other marketplaces because, more often than not, sellers are left to fulfill their own product orders directly. “If a consumer buys three different items from three different sellers, the consumer will get three different boxes,” Cortez explains.

Delivered Cold focuses on empowering the small producer by eliminating the complex self-fulfillment requirement. Because Frozen Logistics operates its own cold storage facility where various products are stored, consumers can order directly from the Delivered Cold freezer, freeing up the producers to do what they do best: produce food products.

“Consumers can shop our freezers directly and access products from all of the incredible farmers, ranchers, and other producers we work with,” says Cortez.

Since the Delivered Cold approach cuts out the middleman, costly and complicated food distribution networks are simplified. By reducing touchpoints in the supply chain, consumers can count on less spoiled food and sellers have another avenue to get their products to consumers.

The sustainability factor

According to recent studies, sustainability is one of the most important factors when consumers choose a company, whether buying food or other products. In recent years, the focus on climate change has influenced every market globally, and it behooves a company to make sustainable practices a cornerstone of their service platforms.

Delivered Cold is built around a sustainability model that compresses the cold delivery supply chain required to get products from the freezer to the consumer. Their approach leads to reduced transportation costs, reduced facility requirements, and reduced material waste.

According to Cortez, Delivered Cold is dedicated to using recyclable and recycled materials throughout the shipping process. It remains cognizant of the impact of its less-than-recyclable materials that are required to get frozen products to the customer. “We plant a tree for every box we ship,” he says. “This helps offset the negative impact of materials that are not entirely sustainable but are necessary for the process.”

Additionally, the company has approached the issue of excess space in packaging that can lead to product thawing, which can cause products to arrive to the consumer in less-than-pristine condition. Traditionally, companies would fill these empty spaces with plastic or paper. Delivered Cold’s approach is decidedly technology-informed.

“Our sophisticated algorithm tracks the available space in each box as consumers shop,” Cortez explains. “We then offer appropriate products to the consumer at competitive and affordable prices, letting us fill each box with as much product as possible.” By maximizing the product-to-packaging ratio, overall waste is reduced.

Moreover, Cortez and his team also produce their own dry ice, further separating the company apart from the competition. The dry ice production process is very energy-intensive, but producing dry ice in the same facility where boxes are packaged with products means they reduce wasted dry ice which, in turn, means less energy goes into each box. By producing dry ice in-house, Delivered Cold is furthering its pledge to sustainable practices.

Growing in 2024

Delivered Cold has soft-launched as of November and will be beginning the next year with over 30 sellers. The company also hopes to host over 100 sellers by the end of 2024 — shipping over 10,000 boxes of a variety of products to consumers by December.

By merging technology, innovations, and a dedicated focus on sustainability, Delivered Cold gives customers what they want and makes shopping for a variety of products easy and accessible.

Rosario is from New York and has worked with leading companies like Microsoft as a copy-writer in the past. Now he spends his time writing for readers of BigtimeDaily.com

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Business

Business Strategies of Michael Gastauer

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Michael Gastauer, a German billionaire and entrepreneur, has led Black Banx to remarkable heights with his innovative strategies in the digital banking sector. As the founder and CEO, his vision has transformed Black Banx into a significant player in the global financial industry, serving millions and revolutionizing banking practices. 

Gastauer’s approach has been distinctly customer-centric, focusing on solving real-world problems through accessible financial services. This strategy has not only captured a vast market share but also established Black Banx as a model of innovative fintech success.

Innovate Early and Often, Invest Strategically

Gastauer’s journey began with a robust foundation in the fintech sector, where he initially created and later sold a payment services company for US$480 million. 

This significant capital boost allowed him to invest in his next venture: Black Banx. Launched in 2014, Black Banx differentiated itself by offering real-time account opening and cross-border payment solutions to a global audience, addressing major inefficiencies in traditional banking. 

Gastauer’s foresight in identifying and investing in these key areas early on allowed Black Banx to scale quickly and efficiently. His strategy was clear: leverage high initial investment to accelerate growth and secure a substantial market presence before competitors could catch up.

Within a year of its inception, Black Banx expanded rapidly, reaching over 1 million customers. This was just the beginning, as the platform soon integrated cryptocurrency options, enhancing its appeal and utility for a broader client base. By the end of 2018, Black Banx was valued at US$9.8 billion, a testament to its rapid growth and the successful implementation of its business model. 

Gastauer’s bold move to integrate cryptocurrencies early in the game positioned Black Banx as a pioneering force in fintech, well ahead of traditional banks.

Pinpoint Problems and/or Challenges

One of the core components of Gastauer’s strategy was to tackle financial exclusion head-on. Black Banx made significant strides in offering banking solutions to the unbanked and underbanked, particularly in regions with limited access to traditional banking services. 

By leveraging technology and strategic partnerships with mobile network operators, Black Banx has been able to extend its reach and offer innovative banking solutions to millions worldwide. This strategic alignment with mobile operators has been crucial, as it taps into an existing infrastructure to reach remote areas, significantly lowering the cost of expansion.

The platform’s ability to facilitate quick, cost-effective international money transfers has been a game-changer, particularly in markets like the Middle East, Asia, and Africa. This not only supports individuals and businesses in these regions but also contributes to the overall growth and stability of the global economy. 

Gastauer’s focus on simplifying and reducing the cost of these transactions demonstrates a deep understanding of the core needs of his customers, thereby enhancing customer loyalty and trust in the brand.

Take a Tech-Driven Approach

Under Gastauer’s leadership, Black Banx has remained at the forefront of technological integration within the banking sector. The adoption of blockchain, AI, and data analytics has enabled the platform to offer personalized financial services, enhancing customer experience and satisfaction. 

This technology-driven approach ensures that Black Banx stays ahead of industry trends and continues to offer relevant and secure banking options. Gastauer’s commitment to integrating advanced technology not only streamlines operations but also provides a scalable model that supports continuous growth and adaptation in a rapidly evolving market.

Leave No Market Unturned

Gastauer’s vision for Black Banx was never limited to a single region. By 2023, the company had expanded its services to include 28 FIAT and two cryptocurrencies, with a robust presence in over 180 countries. This global approach has not only diversified the company’s customer base but also minimized regional economic risks, allowing Black Banx to thrive in a competitive and fast-changing financial landscape. 

The strategic decision to operate across diverse markets also mitigates the risk of localized economic downturns affecting the overall health of the company.

Set Milestones

The year 2023 was a landmark year for Black Banx, as it reached 39 million customers and reported revenues of US$2.3 billion. The company’s ability to maintain a high rate of customer acquisition and satisfaction speaks volumes about its effective strategies and customer-focused approach. 

The first quarter of 2024 continued this trend, with Black Banx announcing a pre-tax profit of US$639 million and revenues of US$2.1 billion, driven by strategic implementations like fixed monthly account maintenance fees. Gastauer’s strategy to introduce fixed fees was a calculated risk that paid off, providing stable revenue streams and further solidifying Black Banx’s financial foundation.

Michael Gastauer’s strategic foresight and relentless innovation have propelled Black Banx to new heights, making it a leader in the digital banking sector. His commitment to financial inclusion, coupled with an aggressive expansion strategy and technological integration, has not only shaped the future of Black Banx but has also set a new standard in the industry. 

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