The Real Reason AriZona Iced Tea Still Costs 99 Cents

There are a few precious things in life that are truly constant, and such things must be treated with respect and looked upon in divine quality. Among such hallowed company as a mother's undying unconditional love and the universal speed of light is a cold crisp reassuring ever present 99 cent can of AriZona Iced Tea.

In an economic climate of supply chain delays and exorbitant fuel and travel costs, how does AriZona manage to keep their prices low? Well the short answer is that, at the moment, they are just making less money. In an interview with the Los Angeles Times, the chairman and founder of the company, Don Vultaggio said, "Your company has to deal with cost increases, but your customers have to deal with cost increases too."

This customer-first ideology and consistency has in a way served as its own marketing campaign as amidst the price hikes of so many products in stores and gas stations, AriZona Iced Tea has stayed stalwartly consistent.

What is AriZona doing to reduce company costs?

Of course commitment to values and consumers is great, but this by no means indicates that AriZona has done nothing at all to preserve their business and their profits. Amongst several strategies employed by AriZona and listed by Ranker, the most prominent is AriZona's lack of marketing. Soda and drink titans like Pepsi Co, Coca-Cola, and Keurig-Doctor Pepper have, market-wise, everything but tap water practically cornered. These companies are multi-billion dollar juggernauts and spend tons of money on their marketing, but AriZona does not. They feel that their prices and products speak for themselves and this anomaly has ironically led to their own brand of mythical word-of-mouth pseudo-marketing campaign.

Vultaggio also spoke on AriZona's attempts at reducing the costs of aluminum for the cans and improved production capabilitiesĀ (via Thrillist). By thinning out the cans and using more recyclables they have been able to both reduce the amount of material used in the cans and increase the speeds at which the cans are produced. As prices continue to rise, here's to hoping that AriZona's 99 cent labels are not a casualty of the market.