Tariffs Could End AriZona Iced Tea’s 99-Cent Price Tradition
AriZona Iced Teas were first launched in 1992 and are known for their tall 22-ounce can and affordable 99-cent price. In a recent interview with School of Hard Knocks, Don Vultaggio, the founder of the company, said that he keeps the price at 99 cents because he can afford it. Of course, that hasn’t stopped retailers from charging more.
Now, thanks to a 50% tariff on aluminum imposed by the Trump Administration, an official price hike may be on the horizon. The metal, of course, is what AriZona uses for its cans, and over 100 million pounds annually at that, per The New York Times. The company sources 80% of its materials from the U.S. and the rest from Canada.
Will Vultaggio—who has proudly touted his billionaire status—continue to front the bill to keep AriZona Iced Teas at 99 cents? That’s the question at hand for the founder as he navigates the costs of the changing industry. Speaking to The New York Times, he said, “I hate even the thought of it. It would be a hell of a shame after 30-plus years.”
Although he’s still considering the price increase, the company announced plans to reduce the price on its 20-ounce tall plastic container. So it appears that Vultaggio is pushing back against the tariffs.
