❓WHAT HAPPENED: Arizona Beverages’ chairman Don Vultaggio reaffirmed his commitment to maintaining the 99-cent price tag for the company’s iconic 22-ounce iced teas, despite rising production costs and tariffs.
👤WHO WAS INVOLVED: Don Vultaggio, chairman and co-founder of Arizona Beverages, alongside his two sons, Wesley and Spencer, who help run the family-owned business.
📍WHEN & WHERE: Arizona Beverages was founded in 1992 in Brooklyn, with Vultaggio’s remarks aired on TODAY on August 21, 2025.
💬KEY QUOTE: “I can kind of tighten my belt, because the people I service and the customers of mine, they’re tightening their belt every day.” – Don Vultaggio
🎯IMPACT: Arizona Beverages continues to prioritize affordability for consumers, even as production costs rise due to tariffs and material expenses.
Arizona Beverages’ chairman and co-founder, Don Vultaggio, has reiterated his intention to maintain the 99-cent price for the company’s 22-ounce iced tea cans, a price point that has remained unchanged since the company’s founding in 1992. In a recent television interview, Vultaggio stated, “Right now, no. We have no plan to do it,” when asked if he would raise prices as a result of import tariffs. “We’re trying to hold the line.”
Founded in Brooklyn, Arizona Beverages has grown from a warehouse operation into a multi-billion dollar brand under Vultaggio’s leadership, with his two sons, Wesley and Spencer, assisting in the business. The company’s commitment to affordability has been tested by rising aluminum costs, which have increased 40 percent due to tariffs. Arizona uses over 100 million pounds of aluminum annually, with 20 percent sourced from Canada. Despite most of the aluminum being recycled domestically, imported aluminum remains subject to tariffs, causing price fluctuations in the overall market for the metal.
The White House’s decision to double tariffs on aluminum imports from 25 percent to 50 percent, according to Vultaggio, has added $40 million in costs for Arizona Beverages. Vultaggio explained that he offsets these expenses by increasing sales volume and offering plastic-bottled alternatives. Starting next month, Arizona’s 20-ounce plastic “tall boys” will be priced at $1 instead of $1.25. “Offering value is always a good idea, and when you can do it, you should,” Vultaggio remarked.
Despite these challenges, Vultaggio remains steadfast in his commitment to consumers, stating, “I can kind of tighten my belt, because the people I service and the customers of mine, they’re tightening their belt every day.” He added that maintaining the 99-cent price is important to him, as he believes in providing affordable options for hardworking Americans. “I think I’d rather grow business than raise prices. I’d rather have more consumers buy my product. Nothing solves problems like volume,” he said.
Arizona’s largest manufacturing facility, located in New Jersey and known as “Arizonaland,” continues to produce the company’s signature products. Vultaggio concluded, “Since I can afford to do it, why not continue to do it?” Forbes estimates his net worth at $6.2 billion.
Image by Like_the_Grand_Canyon.
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