Latest news with #Vultaggio
Newsweek
17 hours ago
- Business
- Newsweek
Donald Trump Puts AriZona's 99-Cent Iced Tea Under Threat
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The founder of AriZona Iced Tea has been forced to consider increasing the price of the company's signature tallboy beverages as a result of President Donald Trump's tariffs on aluminum imports. Newsweek contacted the AriZona Beverage Company via email outside of regular business hours for comment. Why It Matters AriZona has steadfastly stuck by its 99-cent pricing, despite economic pressures and inflation, which would otherwise push this to double that level. Vultaggio told NBC News last year that the company would "fight as hard as we can" to ensure cash-strapped consumers were able to buy the products at the long-held price. The potential change indicates the pressure facing those in the beverage sector and other metals-reliant industries as a result of the recent tariff hike. What To Know Since the early 1990s, the AriZona Beverage Company has held the price of its "Big Can" drinks at $0.99, but Don Vultaggio told The New York Times: "At some point the consumer is going to have to pay the price." "I hate even the thought of it," Vultaggio added. "It would be a hell of a shame after 30-plus years." In June, Trump announced that he would be doubling tariffs on imported steel and aluminum to 50 percent, from the 25 percent rate announced in February. "I have determined that increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat posed by imports of steel and aluminum articles and their derivative articles," Trump said. The U.S. imports around half of the aluminum used domestically, and representatives of the U.S. aluminum sector have warned that this move could endanger them, as well as other aluminum- and steel-reliant industries. "Reestablishing a more level playing field for domestic producers is critical, but a Section 232 tariff of 50 percent threatens to undermine the very industry the administration aims to support," said Charles Johnson, president and CEO of The Aluminum Association. "The Aluminum Association, which represents the full industry supply chain and 70 percent of domestic production, urges the administration to reconsider today's decision given the negative impact it will have on manufacturers." Robert Budway, outgoing president of the Can Manufacturers Institute said similarly that this will "further increase the cost of canned goods at the grocery store," and "put our nation's food security at risk." Don Vultaggio, founder of the AriZona Beverage Company, attends AriZona Iced Tea's "AriZonaLand" Grand Opening on September 19, 2024, in Edison, New Jersey. Don Vultaggio, founder of the AriZona Beverage Company, attends AriZona Iced Tea's "AriZonaLand" Grand Opening on September 19, 2024, in Edison, New AriZona Iced Tea AriZona, which imports 20 percent of its aluminum from Canada, has not yet formally announced plans to raise its prices. However, it is one of many that have said the metals tariffs could force its hand in the future, a step some have already taken. Maryland-based Independent Can has raised its prices twice this year, CEO Rick Huether telling NBC News in July that the packaging company has already "absorbed the amount of the tariffs that we can absorb." Meanwhile, Coca-Cola CEO James Quincey told investors in February that the reliance on imported aluminum from Canada could force the company to rely more heavily on plastic packaging to "compete in the affordability space." What People Are Saying New York Democratic Representative Ritchie Torres, via X, formerly Twitter: "Since 1997, AriZona Iced Tea has proudly kept its iconic 99-cent price tag. For the first time in nearly three decades, Trump's tariffs (effectively a tax on American consumers and businesses) threaten to double that price to $1.99. Trump promised to lower prices. Instead, he's driving them up." A group of over 20 companies from the food, beverage and can-producing sectors, in February letter to President Donald Trump, wrote: "We understand your efforts to use tariffs and other broad trade tools to level the global economic playing field and make our country's economy great again. However, the unintended consequences of these measures—if not properly tailored and implemented—are extremely detrimental to American food producers, farmers, and metal can makers and, hence, our nation's food security." What Happens Next? Despite requests from the industry, no exemptions from the metals tariffs have been granted to U.S. can producers. In addition to these, the administration has imposed sectoral tariffs on automobiles and components, copper parts, and is working to implement more on semiconductors, pharmaceuticals and critical minerals.
New York Post
21-04-2025
- Business
- New York Post
AriZona head honcho spills the tea on his $4 billion beverage business
To celebrate his birthday each year, Don Vultaggio wears his pajamas to work and spends the day flipping pancakes and omelettes on a portable stovetop for his employees. The sight is unusual — but then again, so is Vultaggio's approach to business. 7 Don Vultaggio, founder of the AriZona Beverage Company, says that remaining private has enabled a degree of nimbleness and flexibility. Newsday via Getty Images Advertisement In 1990, he co-founded AriZona Beverage Company. It's now America's top-selling iced tea company, with upwards of $4 billion in annual sales. Through it all, the company has remained privately owned and kept the price for its iconic tall-boys the same — just 99 cents. Vultaggio's credits his business's success, in part, to creating a unique corporate culture and retaining employees. Advertisement At AriZona's headquarters in Woodbury, NY, staff not only gather for Vultaggio's annual birthday pajama party, but there are also annual celebrations for Halloween and Cinco de May — the iced tea launched May 5 — and an Italian dinner featuring vegetables and herbs grown on the rooftop by Vultaggio's wife. Families are encouraged to attend. 'The work I do affects the livelihood of everyone that works [here],' Vultaggio said. 'I take that very personally.' Here, he spills the tea on other strategies that have been crucial to AriZona's success. 7 AriZona's iconic 22-oz tallboy has been priced at 99 cents ever since the cans hit shelves in 1992. Vultaggio has been able to keep the price consistent by slashing nearly every line-item — that doesn't have to do with the product's taste — in the budget. AriZona Beverage Company Independence at all costs Advertisement AriZona is dwarfed by competitors such as PepsiCo and Coca-Cola, but those giants' public ownership comes with strings attached: regulatory hurdles, shareholder pressures, compliance costs and layers of bureaucracy. When something isn't working, executives can spend months haggling with their board. Being family-owned and privately-run allows AriZona to be nimble and agile. 7 AriZona is a family-run, privately held business. Don (bottom left) founded the company in 1990. His wife, Ilene (bottom right) is an artist and designed the original cherry blossom label. Their sons, Wesley (top left) and Spencer (top right), serve as AriZona's chief creative officer and chief marketing officer, respectively. AriZona Beverage Company Advertisement If there's a problem, Vultaggio said, 'We change it at lunch.' In an industry where product development typically takes years, Vultaggio and co. are able to roll out between 12 and 16 new drinks or flavors per year. This month, two of the brand's most unconventional offerings are hitting shelves: a 100-calorie vodka-infused iced tea and a one-gallon boxed cold brew coffee. Vultaggio said they each took about three months to go from conception to store shelves. 7 In April, AriZona is launching a new cold brew coffee product. The drink gives the brand a foothold in the booming cold brew market — forecasted to grow to $16.22 billion by 2032. AriZona Beverage Company The vodka drink — an upgrade over a previous malt-based product and AriZona's first premium boozy beverage — has been successful in Canada. It aims to be AriZona's answer to High Noon and other health-conscious hard drinks, an increasingly lucrative market. Similarly, the coffee beverage will give AriZona a foothold into a booming cold brew market, which was valued at $3.16 billion in 2024 and expected to grow to $16.22 billion by 2032. Having spent years perfecting a cold brewing process for teas, and with all the requisite infrastructure already in place, the move was a natural one for AriZona. 'Brewing is brewing,' Vultaggio said. Advertisement 7 In a typical year, AriZona will produce 12 to 16 new beverages — many of which are one-off collaborations with brands ranging from Marvel to 7-Eleven. AriZona Beverage Company Let the brand speak for itself AriZona has never ran a print or broadcast ad, instead letting its beverages do the talking. 'We make [them] taste good and price [them] fair,' Vultaggio said of his simplistic approach. 'Take care of customers and they take care of you.' 7 AriZona doesn't advertise, but through initiatives like a 99-cent pop-up store in NYC — which featured T-shirts, lapel pins, caps, totes, drink bottles, skate decks and more available for purchase — the brand has developed a cult-like following. AriZona Beverage Company Advertisement While competitors blow millions on Super Bowl ads (and cut corners elsewhere to pay for them), AriZona leans on merch drops, organic buzz and partnerships with companies such as Adidas, Marvel and 7-Eleven — all eager to tap into the company's cultural cachet and zealous fanbase. It's taking that model a step further by launching 'Club Zona' on May 5, a $99-a-year subscription program through which super-fans will get early access to limited-edition flavors and exclusive product drops. It's marketing by way of community: less about reach, more about resonance. 7 Vultaggio hands out free swag to fans waiting in line at an NYC pop-up event. AriZona will be hosting another similar event in collaboration with luxury eyewear designer Thierry Lasry in NYC May 1 to 3 at 216 Lafayette Street. AriZona Beverage Company Advertisement Keep prices consistent While inflation and other outside factors have forced competitors to jack up prices, Vultaggio's savvy has allowed him to tinker with line items and keep AriZona's iced tea price at a consistent $0.99. Growing up in Flatbush as the son of an A&P supermarket manager, he worked nearly every rung of the grocery and distribution ladders, even building his own beer delivery service. This story is part of NYNext, an indispensable insider insight into the innovations, moonshots and political chess moves that matter most to NYC's power players (and those who aspire to be). Advertisement By the time he launched AriZona, when he was in his 40s, he knew how every part of the supply chain worked and how to fine-tune operations and keep his — and customers' — costs low. Over the years at AriZona, aluminum has been removed from cans, rail has replaced trucking where possible (and the remaining trucks now drive at night to for better fuel efficiency) and equipment is increasingly built in-house to abate vendor markups. 'If you're a manufacturer who thinks it's easy to just pass price along to a consumer,' Vultaggio said, 'you're kidding yourself.' Send NYNext a tip: nynextlydia@
Yahoo
22-02-2025
- Yahoo
17 graduate from SF Law Enforcement Training Program
SIOUX FALLS, S.D. (KELO) — Friday was a special day for a group of law enforcement officers in southeastern South Dakota. 17 people graduated from the Law Enforcement Training Program based in Sioux Falls. House lawmakers: No librarian defense for 'harmful' books KELOLAND News introduced you to Jason Vultaggio shortly before he started the Sioux Falls regional academy. Friday was graduation day for the Sioux Falls police officer after he completed the 13-week basic law enforcement certification course. 'Hard, a lot of work, a lot of hours put into it, a lot of teamwork, a lot of camaraderie that was built. I have a new family here now, which feels incredible,' Vultaggio said. Vultaggio is one of 14 graduates for the Sioux Falls Police Department. Meanwhile, the Minnehaha County Sheriff's Office has three graduates from the academy. 'I was thinking back on it just yesterday with my classmates, all the things we've done, accomplished and thinking about in the moment they were very difficult, they were extreme challenges, but looking back on it, it was good to see that we helped each other through, we persevered, and we overcame, and now we're here finally reaping that reward for all the hard work we did,' said Marcos Loa with the Minnehaha County Sheriff's Office. Attorney General Marty Jackley thanked the group for choosing law enforcement. Jackley's advice to the officers is to stay healthy. 'And that is focus on your family. Focus on doing the things you love. That will make you a stronger officer when you're at work,' Jackley said. While graduating is a satisfying feeling for Vultaggio he knows there's more training ahead before he can patrol the streets on his own. 'We have a long way to go after this. This is just the beginning, but accomplished,' Vultaggio said. The Sioux Falls program was started in 2020. It's the same training as the Pierre-based academy. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
