Arizona Iced Tea has garnered widespread recognition for its brightly colored cans and steadfast 99¢ price, a hallmark that has remained unchanged since its inception in 1992. Co-founder and chairman Don Vultaggio recently delved into the rationale behind this pricing strategy in an interview with TODAY’s Savannah Sellers. Competing with Snapple, Arizona Iced Tea has maintained its affordable price for over three decades, a decision Vultaggio attributes to his commitment to the consumer. Faced with inflation and economic fluctuations, the company has chosen to streamline expenses rather than raise prices. Vultaggio, who grew up in a working-class family with firsthand experience in the grocery industry, emphasizes that this approach is his way of giving back to consumers who are struggling to make ends meet.
Vultaggio’s dedication to keeping prices low reflects his personal philosophy and business acumen, shaped by his early career experiences. He began working in a grocery store as a teenager and later delivered Schlitz malt liquor, which inspired the larger cans that set Arizona Iced Tea apart. Vultaggio believes that maintaining a fair price not only benefits consumers but also helps retailers, as it encourages customers to purchase additional items, boosting overall sales. His resistance to price increases is a rare stance in today’s market, where many CEOs prioritize profits over consumer loyalty. Supported by his sons, Wesley and Spencer, Vultaggio continues to lead Arizona Iced Tea with a focus on efficiency and consumer satisfaction, proving that profitability and affordability can coexist.
