Since 1997 an aluminum tall boy of AriZona iced tea has cost just 99 cents. If the price rose with inflation that figure would stand at $1.99 – still much lower than most drink companies are charging customers for a beverage in this day and age.
AriZona founder Don Vultaggio maintained the company’s decision to keep the price at 99 cents – so much so that the price sits directly on the can, forbidding retailers from marking up the price. However, that all could be about to change.
AriZona Considering a Price Change
Vultaggio revealed the current price point that’s been in stead for nearly three decades may no longer be tenable now that a 50% tariff on imported aluminum has taken effect.
“We’re holding the line for now despite rising aluminum costs,” Vultaggio said, via The Hill. “It’s particularly unfair—80% of our can sheet metal comes from recycled U.S. beverage cans, yet 100% of our aluminum is subject to tariffs.”
Vultaggio Finds Savings for Customers Amid Potential Rise in Iced Tea Price
According to the New York Times, AriZona sells about two billion cans annually, roughly half of which are tallboys. The company said it had “adjusted prices where absolutely necessary” on its other products. But not the iced tea.
Vultaggio said that “at some point the consumer is going to have to pay the price” for the tariffs on aluminum. “I hate even the thought of it.”
He promised to find savings wherever possible, like with polyethylene terephthalate (PET) used in plastic packaging and revealed a price cut from $1.25 to $1.
“Wherever we see savings—like lower crude oil costs for PET—we’re passing them to customers with deeper promotions or outright price cuts, including plastic tall boys at $1,” he said.
Related: United Airlines Moving Forward With Change on All Flights Starting August 12
