When Arizona Iced Tea first came out in 1992, a 22-ounce can cost 99 cents. In 2024, it still costs the same.
“We’ve been successful.” We have no more debt…Why do renters who are having a hard time have to pay more for our drinks? It could be my small way of giving back.
That’s what Arizona Beverage Company CEO and founder Don Vultaggio said this week on NBC’s “Today Show” when asked why his company hasn’t raised the prices of its most popular teas from 99 cents.
The U.S. has had high inflation for a number of years. Even though it’s not as high as it was in 2022, consumer prices were 3.3% higher in May than they were the previous year.
It cost $1.97 for a loaf of white bread in May, up from $1.69 in June 2022. It cost $5.99 for a pound of ground roast coffee in May, up from $5.79 in June 2022.
Arizona hasn’t raised the prices of its 22-ounce drinks in 32 years, even though prices are going up. Arizona makes a green tea and the famous Arnold Palmer drink, which is half tea and half lemonade.
The Inflation Calculator from the Bureau of Labor Statistics says that 22-ounce drinks in Arizona would cost $2.22 more if prices kept up with inflation.
How has Arizona been able to keep its price below a dollar?
“People ask, ‘How do you do that?'” The cans are thinner, we ship it better, and we ship it faster, Vultaggio said.
The suggested retail price for Arizona’s 99-cent cans is written on them, but the company says that retailers sometimes charge a different price for the product.
Most of Arizona’s rivals charge more for their goods now than they did in 1992.
Coke’s KO, -0.22% CFO John Murphy told the Wall Street Journal in 2023, “Our approach to pricing, whether it’s times of inflation or not, is to make sure that we keep up with inflation.”
People are glad that the prices of Arizona tea products have stayed the same, along with other cheap goods. Two others are the $1.50 hot dog and soda combo at Costco (COST, -0.73%), which hasn’t changed since 1985, and the many dollar pizza shops in New York City.
Vultaggio said, “I don’t know about never, but not in the near future.” He was talking about the chance that prices might go up at some point. “Cashiers are my friends, so we’re going to fight as hard as we can for them.”
