A 22-ounce can of Arizona iced tea has been 99 cents since the company was founded in 1992. Amid global trade wars, tariffs, and sticker shock for consumers, Arizona Beverages\u2019 chairman and co-founder Don Vultaggio is committed to keeping that sweet deal.<\/p>\n
\u201cRight now, no. We have no plan to do it,\u201d Vultaggio says when asked if he plans on raising his iced tea’s 99-cent price tag. \u201cWe\u2019re trying to hold the line,\u201d he says, reaffirming, \u201cNo, we\u2019re not.\u201d Vultaggio launched Arizona Beverages in 1992 from a Brooklyn warehouse. He built a fortune with his 99-cent ice tea can, which includes its popular green tea and Arnold Palmer.<\/p>\n
Amid companies like Costco, Procter & Gamble, Mattel, Apple, and more raising prices due to President Donald Trump administration\u2019s tariff policy, Arizona iced tea’s price tag has stood the test of time. But Vultaggio says it\u2019s becoming harder to maintain. The 99-cent cans cause the American company to use more than 100 million pounds of aluminum a year, with about 20% of that supply coming from Canada.<\/p>\n
In June, the White House announced that tariffs on aluminum and steel imports would double from 25 to 50%. It should be noted that most of the aluminum the company uses is recycled in America, but 100% of their supply is being tariffed. Vultaggio tells Sellers that the cans are costing him about 40% more, and with a 100 million pound purchase, he\u2019s dishing out $40 million more and absorbing the cost.<\/p>\n
\u201cThe way I can get some of that back is by increasing volume, increasing the top line, the sales of the company,\u201d he says. \u201cAnd we\u2019ve been doing that successfully. That\u2019s a good way to offset costs.\u201d Another way to offset costs is by using more plastic bottles. Next month, Arizona\u2019s plastic-bottled 20-ounce beverages known as \u201ctall boys\u201d will have a new $1 price tag instead of $1.25.<\/p>\n
\u201cOffering value is always a good idea, and when you can do it, you should,\u201d Vultaggio says, noting that he is choosing against putting the extra production cost on the consumer. \u201cI can kind of tighten my belt, because the people I service and the customers of mine, they\u2019re tightening their belt every day,\u201d he adds. Vultaggio, who is worth $6.2 billion according to Forbes, believes that if he doubled or tripled the price, his sales might fall.<\/p>\n
Vultaggio’s largest manufacturing facility is located in New Jersey, dubbed \u201cArizonaland,\u201d and he says he stands by the price tag for their popular products, which he believes is something worth fighting for. \u201cI grew up in Brooklyn, and I worked for $1 an hour. I respect the value of $1. And I\u2019d say, if I can help people who do that and give them a refreshing beverage for an affordable price, why not? And since I can afford to do it, why not continue to do it,\u201d Vultaggio adds.<\/p>\n
A: Arizona Beverages\u2019 chairman and co-founder Don Vultaggio is committed to keeping the 99-cent price tag as a way to offer value to consumers and prioritize their needs.<\/p>\n
A: The company plans to offset the increased cost by increasing volume, increasing the top line, and using more plastic bottles.<\/p>\n
A: The tariffs have caused the cost of aluminum to increase by 40%, resulting in an additional $40 million cost for the company.<\/p>\n
A: Vultaggio believes that raising prices could lead to a decline in sales and instead chooses to prioritize consumer value and absorb the increased cost.<\/p>\n
A: The 99-cent price tag is significant to Vultaggio as it represents a commitment to offering affordable products to consumers and respecting the value of $1, which he believes is essential for people who work hard for their money.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction to Arizona Beverages A 22-ounce can of Arizona iced tea has been 99 cents since the company was founded in 1992. Amid global trade wars, tariffs, and sticker shock for consumers, Arizona Beverages\u2019 chairman and co-founder Don Vultaggio is committed to keeping that sweet deal. Commitment to Affordable Pricing \u201cRight now, no. We have […]<\/p>\n","protected":false},"author":6,"featured_media":22407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[19],"tags":[],"class_list":{"0":"post-22405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-dining"},"jetpack_featured_media_url":"https:\/\/i2.wp.com\/media.nbcnewyork.com\/2024\/07\/image-19.png?resize=1200%2C675&quality=85&strip=all&w=1200&resize=1200,675&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/22405"}],"collection":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/comments?post=22405"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/22405\/revisions"}],"predecessor-version":[{"id":22408,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/posts\/22405\/revisions\/22408"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/media\/22407"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/media?parent=22405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/categories?post=22405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/new-york\/wp-json\/wp\/v2\/tags?post=22405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}