Monday, Nov. 21, 2022
Has Arizona Iced Tea kept its 99-cent cans the same price for the past 30 years?
For the past three decades, the cost of Arizona Iced Tea's 23-ounce beverage cans has remained 99 cents.
For comparison, the average price of "non-alcoholic beverages and beverage materials" increased by 12.3% between August 1992 and August 2022, according to the Bureau of Labor Statistics.
Despite sharply rising prices for ingredients such as high fructose corn syrup, and materials such as aluminum, Arizona founder Don Vultaggio told CNBC, “For as long as we can, we’re going to hold our price."
To stay competitive, Vultaggio does not spend money on advertising, relying instead on word of mouth. Additionally, Vultaggio takes advantage of economies of scale, using a high quantity of sales — they sell a billion cans a year — to offset the low price point. Recycled materials and a recent lid redesign lower production costs, while night trucking reduces transportation and fuel costs.
Arizona Ice Tea does not have a direct connection to the Grand Canyon State. Commenting on the name choice, Vultaggio, a Brooklyn native, told CNN Business:
“I always associated Arizona with a healthy, clean and dry feel that was different from the Brooklyn feel. Having a name associated with a lifestyle, which is an environment and climate that made you want to grab a refreshing iced tea. That’s why the name seemed to make sense to me.”
This fact brief is responsive to conversations such as this one.
Sources
- US Bureau of Labor Statistics Prices for food at home up 13.5 percent for year ended August 2022 : The Economics Daily: U.S. Bureau of Labor Statistics
- Food & Wine Why AriZona Iced Tea's Price Has Stayed the Same for 30 Years at Just 99 Cents
- CNBC AriZona Iced Tea CEO vows to keep the 99-cent price tag 'for as long as we can'
- CNN The surprising backstory of AriZona Iced Tea’s name
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Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.
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The Arizona Center for Investigative Reporting is the state’s only independent, nonpartisan and collaborative nonprofit newsroom dedicated to statewide, data-driven investigative reporting. AZCIR's mission is to hold powerful people and institutions accountable by exposing injustice and systemic inequities through investigative journalism.
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