AriZona iced tea 99-cent deal under threat as founder floats possible price hike:
By Brooke Steinberg
Here’s the new tea on AriZona.
The brand’s iconic 99-cent iced tea may be increasing its price for the first time in decades.
For more than 30 years, the beloved beverage held strong to its low price tag — surviving the pandemic, supply chain issues and recessions.
Unfortunately, President Donald Trump’s new 50% tariffs on imported aluminum could lead to a price increase, the brand claimed.
About 100 million pounds of aluminum are used to forge a batch of AriZona Iced Tea’s signature cans — 20% of which comes from Canada.
Five Arizona beverage cans in various flavors.
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The 99-cent selling point is a huge part of the AriZona Iced Tea branding.
Olesya – stock.adobe.com
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The other 80% is made from recycled material in the US, but the added cost for the rest of the aluminum is putting pressure on the brand to raise their prices.
The company’s founder and chairman, Don Vultaggio, told the New York Times that they might be forced to raise their 99-cent price unless a deal is made to lower the aluminum tariffs with Canada.
“I hate even the thought of it,” Vultaggio told the Times. “It would be a hell of a shame after 30-plus years.”
Since it launched in the early 1990s, AriZona had the 99-cent price tag printed directly onto its tall cans of iced tea.
AriZona sells about two billion cans every year, and roughly half of those sales are their signature tallboys. It’s now America’s top-selling iced tea company, with upwards of $4 billion in annual sales.
Don Vultaggio, Chairperson of Arizona Beverage Company, at the AriZona Iced Tea AriZonaLand Grand Opening.
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Founder Don Vultaggio told the New York Times that they might be forced to raise the 99-cent price.
Getty Images for AriZona Iced Tea
Even with inflation raising the costs of other groceries and goods, Vultaggio has refused to raise the price. If he increased the cost to match rising input costs, the tea would cost $1.99 today.
In an interview with “Today” in June, Vultaggio noted that the company is “successful” and “debt-free,” and the company takes on higher costs instead of passing it on to customers.
“Why have people who are having a hard time paying their rent have to pay more for our drink?” he said at the time. “Maybe it’s my little way to give back.”
The 99-cent selling point is a huge part of the AriZona Iced Tea branding, and though retailers were hesitant at the locked in price at first, the deal became “like heroin” for customers.
Arizona Sweet Tea can.
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If Vultaggio increased the cost to match rising input costs, the tea would cost $1.99 today.
Brandon Woyshnis – stock.adobe.com
“Our marketing was never built on anything other than just common sense,” Vultaggio said. “And a lot of guts. But it was guts from years of business. I’m a consumer, too. I like deals. I like sales.”
In fact, AriZona has never run a print or broadcast ad — they just let the drinks spill the tea for themselves.
See Also
Arizona Iced Tea
Arizona Iced Tea founder pledges to keep 99-cent price ‘for as long as we can’
“We make [them] taste good and price [them] fair,” Vultaggio previously told The Post. “Take care of customers and they take care of you.”
Now, the founder is concerned that the rising cost of aluminum — which he said “dramatically bumped up” due to tariffs — will reluctantly force their hand.
“At some point, the consumer is going to have to pay the price,” Vultaggio said.
“I hope the administration understands and deals with the fact that if you’re going to protect American manufacturers, you can’t allow them to gouge the marketplace because of that protection. If I had Donald Trump’s ear, that’s what I would tell him directly.”
While no price increase has been confirmed, AriZona has expressed that they’re considering their options to make up for the added costs with tariffs.
In the meantime, Vultaggio is seemingly remaining cool, calm and collected, telling the Times, “What happens, happens. We can find our way through it.”
President Trump speaking at a podium, holding a chart detailing reciprocal tariffs.
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President Donald Trump’s new 50% tariffs on imported aluminum could lead to a price increase for AriZona iced tea.
BRENDAN SMIALOWSKI/AFP via Getty Images
Meanwhile, AriZona Iced Tea fans are brewing over the potential price shift online.
“Can we consider this like the Waffle House index, except with the economy?” one person asked, referring to the informal metric to determine the strength of a hurricane named after the restaurant chain.
“Now if Costco’s hotdog combo price raises, we are really screwed.”
“This is a sure sign of the apocalypse!” another exclaimed.
“99¢ AriZona was the only thing keeping the social contract intact, now it’s just warlord season,” a user noted.
“End of an era for budget beverage lovers,” someone else said.
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