Arizona Iced Tea co-founder reveals why he refuses to increase the price of the 99-cent drink

The CEO of the Arizona Beverage Company, which produces Arizona Iced Tea and other beloved drinks, has earned some kudos from fans of the brand.

In a recent interview, Don Vultaggio, one of the co-founders and current Chairman of the beverage company, was asked why he hasn’t raised prices—something many of his competitors have done to boost profits amid rising costs. Vultaggio founded the company alongside John Ferolito, whom he later bought out for $1 billion after a fraught legal battle.

“Little way to give back,” says Don Vultaggio

In a 2024 interview with TODAY’s Savannah Sellers, Vultaggio explained that the company’s financial health is strong. “We’re successful. We’re debt-free. We own everything,” he said. In a recent social media post, some of these innovations were highlighted.

He went on to note that he understands some of his customers may be struggling financially, and he sees holding the line on prices as a “little way to give back.”

Over the past three years, consumers have seen the price of non-alcoholic beverages rise by roughly 13 percent, according to the Bureau of Labor Statistics’ Consumer Price Index. Tea prices specifically have gone up by 16 percent. Arizona, however, has kept its prices steady, even as production costs have climbed.

Rather than passing those costs on to consumers, Vultaggio pointed to various ways the company has adapted to keep expenses down, making a price hike unnecessary.

No price hike planned

The company takes pride in not relying on price increases to maintain profitability. When Arizona beverages first hit the market in 1992, they came with a 99¢ price tag—and that hasn’t changed.

Had the can kept up with inflation over the past three decades, the classic can of tea would cost $2.30. Arizona has remained competitive and profitable by finding innovative ways to reduce production costs before ever turning to customers for more.

For example, the company has made its cans thinner and restructured its distribution network to reduce logistics and transportation costs. At the time of the interview, Vultaggio stated that there were no plans to raise prices anytime soon, adding that they would “fight as hard as we can for consumers.”

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