Tall cans of Arizona Iced Tea have been available at gas stations and convenience stores since 1997, proudly maintaining a price of 99 cents. However, changes may be on the horizon, according to the company’s founder, Don Vultaggio.
This longstanding price could be threatened by new tariffs of 50% on imported aluminum. Vultaggio remarked, “We’re holding the line for now despite rising aluminum costs,” citing that while 80% of the metal in the cans comes from recycled U.S. beverage containers, all the aluminum is subject to these tariffs.
Vultaggio isn’t new to the challenges of maintaining pricing in a fluctuating economy. In a discussion with Nexstar in 2022, he explained how Arizona has adapted to keep its 99-cent price tag despite inflation and supply chain disruptions. They’ve established production facilities throughout the country to reduce shipping costs, modified can lids to use less aluminum, and even downsized their 23-ounce cans to 22 ounces in 2020.
“These are the behind-the-scenes adjustments that consumers usually don’t notice,” he explained at the time.
Yet, Vultaggio admitted that it might be becoming increasingly difficult to shield consumers from price hikes. “If prices keep climbing, we may have no choice but to adjust them, although I’ll do everything I can to avoid that,” he said recently.
While he didn’t reveal a new price for the tall cans, he noted that if pricing was determined purely by inflation, the price that was set in 1997 would equate to about $2.01 today.
He also expressed his commitment to finding cost-saving opportunities, particularly for polyethylene terephthalate (PET) used in plastic packaging. Vultaggio mentioned plans to reduce the price of drinks in plastic bottles from $1.25 to a lower amount.
“Whenever we identify savings, like in lower PET oil costs, we aim to pass those benefits to customers through better promotions and price cuts, including $1 tall boys in plastic,” he added.
