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Monday, Nov. 21, 2022

Has Arizona Iced Tea kept its 99-cent cans the same price for the past 30 years?


yes

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.”

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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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