Latest news with #AriZona
Hindustan Times
4 days ago
- Business
- Hindustan Times
AriZona iced tea to cost more than 99 cents? What founder Don Vultaggio said about reason
AriZona iced tea might be forced to change its 99-cent pricing for the first time since 1997. Company founder, Don Vultaggio, feared that despite weathering economic highs and lows for 28 years, a change might be in the offing. In 2022, the 23-ounce AriZona ice tea can was made smaller, reducing it to 22 ounces. (X/@DiggzDaProphecy) Donald Trump's tariffs are to blame for the likely price rise. Vultaggio said that keeping the 99-cent price may no longer be feasible now that the 50 percent tariff on imported aluminum is in place, KTLA reported. What AriZona iced tea founder said about price rise 'We're holding the line for now despite rising aluminum costs,' the AriZona iced tea founder told the news outlet, adding, 'It's particularly unfair—80% of our can sheet metal comes from recycled US beverage cans, yet 100% of our aluminum is subject to tariffs.' However, Vultaggio is no stranger to finding creative ways to maintain prices. In 2022, he told Nexstar how the company worked on keeping the 99-cent rate fixed despite Covid hurdles and record inflation. They built production facilities around the US, to save money on shipping costs, and changed the lids of the cans to use less aluminum. In 2022, the company made the 23-ounce can smaller, reducing it to 22 ounces. At the time, Vultaggio had said 'Those are the kinds of things you do behind the scenes that don't affect the consumer.' However, as of Wednesday, he said that it might no longer be possible to spare the customer. 'If pressures keep rising, we may have no choice but to adjust pricing, though we'll work hard to avoid it,' the company founder added. While the company head didn't specify what the new cost for the tall cans would be, given the inflation as the sole determining factor, a can priced at 99 cents in 1997 would be worth $2.01 today. However, Vultaggio has vowed to keep finding avenues through which the price of the beloved iced tea can be slashed. For example, the company uses polyethylene terephthalate (PET) in plastic packaging, and he told The New York Times that the cost of plastic bottles would be going down from $1.25 to $1. 'Wherever we see savings—like lower crude oil costs for PET—we're passing them to customers with deeper promotions or outright price cuts, including plastic tall boys at $1,' he said.
USA Today
4 days ago
- Business
- USA Today
Here's the tea: Why AriZona may raise price of famous 99-cent cans
"If pressures keep rising, we may have no choice but to adjust pricing, though we'll work hard to avoid it," AriZona Chairperson and Co-founder Don Vultaggio said. After more than 30 years, AriZona iced tea may see a price increase for the first time. AriZona Beverage Company is known for its 22-ounce cans of iced tea, including its wildly popular Green Tea with Ginseng and Honey served in the iconic teal can adorned with cherry blossoms. Since its founding in 1992, AriZona has sold these cans for 99 cents, but Chairperson and Co-founder Don Vultaggio told USA TODAY that if tariffs implemented by President Donald Trump continue to rise, the company may have to adjust its pricing. Vultaggio said the situation is "particularly unfair" because 80% of the sheet metal used for AriZona products is recycled from the United States. The other 20% is imported. On June 3, Trump signed an executive order that issued a 50% tariff on all aluminum and steel imports. "If pressures keep rising, we may have no choice but to adjust pricing, though we'll work hard to avoid it," Vultaggio said. "Wherever we see savings – like lower crude oil costs for PET (Polyethylene Terephthalate, a plastic used for bottles) – we're passing them to customers with deeper promotions or outright price cuts, including plastic tall boys at $1," Vultaggio continued. Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@
Yahoo
5 days ago
- Business
- Yahoo
"True Sign Of A Recession": People Are Freaking Out That The Price Of This Item That's Stayed The Same For Three Decades Could Be Going Up Due To Tariffs
I'm sorry to have to be the one to tell you this, happening: Companies have continued dealing with the consequences of President Trump's tariff war, and they're finally beginning to pass tariffs on to consumers as a result. And as a regular consumer of Arnold Palmers, I'm even sorrier to tell you that one of the victims of these tariffs could potentially be the one and only 99-cent AriZona canned iced teas. Related: The New York Times reported this week that Don Vultaggio, the CEO of AriZona, has spent weeks contemplating something he thought "he would never do: raise the 99-cent price of its canned iced teas," which has stayed the same since 1997. They noted that "About 80 percent of the aluminum AriZona uses to make its tallboys comes from recycled material produced in the United States. The rest is imported from Canada, and subject to a 50 percent import duty." The prices haven't officially been raised just yet, and Vultaggio is supposedly "clinging to cautious optimism." On X (formerly Twitter), people were absolutely devastated by the possible price increase. "my faith in society is gone. even the arizona iced tea couldn't escape the tariffs." Related: "YOU'VE TAKEN THE ONE GOOD THING IN MY LIFE" "if Arizona tea has to increase their can prices, its a sign we should just go extinct as a species." Related: "this literally the only thing left that stayed true to their code." "True sign of a recession." "this is an apocalypse indicator, end times are nigh." Related: And finally, this person had a liiiiiiiittle history lesson for us all: "You know what happened last time Americans were mad about tariffs raising the price of tea?" At least we'll still have the $1.50 Costco hot dogs. Right? Right? Also in In the News: Also in In the News: Also in In the News: Solve the daily Crossword
Yahoo
6 days ago
- Business
- Yahoo
AriZona Iced Tea founder considering price hike to 99-cent tallboys — all thanks to Trump's aluminum tariffs
AriZona iced tea has been one of the sweet holdouts at 99 cents, even as coffee, rent and streaming subscriptions have climbed year after year. But that price tag that has remained the same for 30 years may be on the verge of breaking. Founder and chairman Don Vultaggio says he's now weighing a move he's avoided for more than three decades: raising the cost of the brand's iconic tallboys. 'I hate even the thought of it,' Vultaggio told The New York Times. 'It would be a hell of a shame after 30-plus years.' The pressure comes from a 50% tariff on aluminum imports imposed under the Trump administration, which has made AriZona's signature cans far pricier to produce. The company use more than 100 million pounds of aluminum each year, with 20% sourced from Canada. While Vultaggio hopes the trade dispute resolves before consumers feel the impact, he admitted the cost can't be absorbed forever. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now How AriZona found its flavor Growing up in Brooklyn's Flatbush neighborhood, Vultaggio often overheard his father — a manager at an A&P grocery store — discussing retail and labor issues. After high school, he worked at a Bushwick brewery, where his interest in materials over brewing led him and partner John Ferolito to start a beer distribution business — that seed that became AriZona. The turning point came on a frigid day in 1991, when Vultaggio spotted a truck unloading cases of Snapple in Lower Manhattan. 'I went home that night and told my wife, 'We're going into the iced tea business,'' Vultaggio said. 'I didn't know beans about iced tea.' To stand out, his wife Ilene — a pastel artist — designed a bold turquoise, pink and yellow sunburst. When naming the brand, they wanted something cool and distinctive, landing on 'Arizona' and giving it a final flourish: a capitalized 'Z' to make it pop. But it wasn't just the design that set them apart. Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Building the brand Vultaggio says AriZona's success rests on three simple rules: make it taste good, make it look good and price it right. The 99-cent tallboy, introduced in 1997, became a defining feature of the brand. By 2000, sales had jumped 30%. 'Our marketing was never built on anything other than just common sense,' Vultaggio said. U.S. tariffs are expected to cost midsize businesses $82.3 billion, according to the JPMorgan Chase Institute. While midsize firms — those with annual revenues between $10 million and $1 billion — make up a third of private sector revenue and jobs, many lack the scale to absorb or negotiate away higher import costs. AriZona pulls in more than $4 billion in annual sales, according to The New York Post, putting it well beyond the midsize category, yet it's still feeling the effects. Aluminum prices have nearly doubled in the past 18 months, jumping from about $1,750 per metric ton to nearly $3,250. Shipping, taxes and other costs push prices even higher, with premiums rising from roughly $420 per ton in April 2019 to more than $880 today. Privately held and vertically integrated, AriZona sells about two billion cans a year, roughly half of them tallboys. That independence gives Vultaggio more control over pricing and operations, helping him maintain the consistency that has turned first-time buyers into lifelong fans. 99-cent strategy About 80% of the aluminum AriZona uses for its tallboys comes from recycled material made in the U.S. The rest is imported from Canada and is subject to a 50% import duty. 'Our price has been dramatically bumped up because of this tariff talk,' Vultaggio said. If your favorite products are starting to creep up in price, remember that even the most stubborn price holds can't dodge rising costs forever. When tariffs hit, companies face tough choices: absorb the costs, cut corners or pass them on to customers. Brands like AriZona, which control much of their production, can hold the line longer but not indefinitely. Before Vultaggio was running a multibillion-dollar brand, he was a blue-collar worker making every dollar count. 'I started out as a blue-collar guy, and budgeting your finances on a daily basis was a part of life,' he told The Los Angeles Times. With tariffs pushing prices higher across industries, this might be a good time to take a closer look at your budget. Set aside a small monthly cushion to cover unexpected cost increases. Track the prices of the products you rely on so you can spot hikes early and stock up. Pay attention to economic signals like tariff announcements and commodity price swings — they're often the earliest warning signs that your grocery bill, utility costs or even your afternoon iced tea could be next. What to read next Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Time of India
6 days ago
- Business
- Time of India
AriZona 99-cent iced tea founder flags possible price increase due to Trump tariffs; internet disputes his cost freeze claims
For more than two decades, AriZona's iconic 99-cent iced tea has remained a symbol of affordable refreshment, defying inflation, recessions, and even a global pandemic. However, recent trade policies under President Donald Trump—specifically the 50% tariff on aluminium imports—are threatening to end this long-standing tradition. These tariffs, part of Trump's broader push to protect American industry through import taxes, have caused production costs to soar for companies like AriZona that rely heavily on aluminium cans. Now, the brand's famously low price tag may finally be forced to rise, and those who were fond of the famous iced tea are reeling on social media, calling it the end of an era. However, some internet users have also disputed the claims of cost freeze, alleging the iced tea already costs above $1 in several states. How Trump's aluminium tariffs have put pressure on AriZona's production costs AriZona Iced Tea uses about 100 million pounds of aluminium annually, with around 20% imported from Canada. The steep 50% tariff on aluminium imports has dramatically increased the cost of materials needed for its signature cans. Founder Don Vultaggio has warned that unless there is a trade deal to ease these tariffs, the company may be forced to reconsider its pricing strategy, ending a 30-year tradition. Founder's commitment to keeping the drink affordable despite rising costs Don Vultaggio has long resisted raising the price of AriZona iced tea, even as inflation and input costs would justify doubling the price to nearly two dollars. His commitment is grounded in empathy for customers facing financial struggles, saying he doesn't want people who are already struggling to pay more for their favourite drink. This stance has earned him respect and headlines alike. Cost-cutting measures taken to preserve the 99-cent price — and the weight of tough decisions In an attempt to avoid raising prices, AriZona has already downsized the can slightly, from 23 ounces to 22 ounces. While subtle, this change was not easy for the founder, who understands the value customers place on both quality and quantity. Still, with aluminium prices spiking due to tariffs, this may only be a temporary fix. Fans share their reactions as the 99-cent price may vanish Social media was quickly flooded with reactions as news spread about a potential price hike. Many long-time fans took to Twitter and Instagram to express disappointment, sharing memories tied to the iconic 99-cent cans. Some joked about stocking up before the price goes up, while others lamented that the end of this affordable classic feels like a sign of shifting economic times. One user wrote, "Even small price changes can hit harder when they touch a decades-long staple brand." Even small price changes can hit harder when they touch a decades long staple brand. "Held it down for as long as they could," a second user said. Held it down for as long as they could 🙏🏾 "AriZona 99¢ cans going up? That's a cultural reset. @DavidNeomi873 probably saw this coming with inflation hitting everything. Pour one out for the last true bargain," a third individual said, while a fourth mentioned, "For Don, I will pay a little extra for AriZona. He has fought a good fight." For Don, I will pay a little extra for AriZona. He has fought a good fight. However, some users also highlighted that these AriZona cans haven't been 99¢ in several states for several years. One person claimed, "They already did it; it's $1.29 in Chicago." They already did it's a $1.29 in Chicago "They haven't cost 99 cents since 2005," another claimed. They haven't cost 99cent since 2005 "The f**k you mean??? Stores have been increasing the price since covid. I've paid anywhere from 1.25 to 2.00 lol," one individual chimed in. The fuck you mean??? Stores have been increasing the price since covid. I've paid anywhere from 1.25 to 2.00 lol "They haven't been a dollar in years," said one user. They haven't been a dollar in years Notably, during the Covid-19 pandemic, the founder vowed to keep the price unchanged 'for as long as we can.' To stay updated on the stories that are going viral follow Indiatimes Trending.
