AriZona Iced Tea's Iconic 99-Cent Cans Are Here To Stay ... For Now
AriZona Iced Tea was founded by a man who had no connection to the southwestern state. In fact, he hadn't even visited the place. As CNN notes, Brooklyn raised Don Vultaggio came up with the name after brainstorming places near Santa Fe. Although Sante Fe was his original choice, based on the architectural style of his New York residence, he ended up choosing Arizona because it seemed like it had the kind of weather where an iced tea would seem appropriate and it worked with the packaging.
But that's only the second most interesting thing about AriZona Iced Tea. The most interesting, of course, is the fact that the company seemingly never raises prices. AriZona's 23-ounce cans are still priced at 99 cents, which is exactly what they went for back in 1992, when the drink was first released, per the Los Angeles Times. It's rather remarkable, especially in 2022, when inflation and supply chain disruptions have caused so many companies to increase their prices.
Despite the financial challenges posing many, AriZona hasn't budged, and according to recent reports, it looks as if the price of its iconic iced tea cans will remain the same — for now.
How AriZona Iced Tea maintains its low prices
CNBC reports that AriZona Iced Tea cans will continue to sell for 99 cents for the foreseeable future. In fact, the outlet quoted Vultaggio as saying, "For as long as we can, we're going to hold our price." Of course, there's obviously a limit to how long the brand can hold out. AriZona has already instituted a number of cost-cutting features over the years to help sustain profitability, despite its low prices. According to Thrillist, these measures include manufacturing cans with significantly less aluminum, and building more factories, so transportation costs are minimized. AriZona has also altered the lid on its cans to save money, per CNBC, and the company famously eschews advertising, instead relying on its reputation and low prices to help drive sales.
The profits are still there, despite the fact that due to inflation, the dollar has half the value it had back in 1992. As the Los Angeles Times explains, the company is compensating with sheer volume, to the tune of one billion cans in annual sales. But profits are shrinking, and no matter how well AriZona streamlines its manufacturing process, there's no getting around the fact that the materials it needs — like aluminum — now cost more. And in some cases, appreciably more.
So sometime soon, the most interesting thing about AriZona Iced Tea may be its new price tag. But not yet.