How Arizona Has Kept Its Iced Tea 99 Cents
For over 30 years, AriZona Beverages has carved a niche in the highly competitive beverage industry by maintaining its iconic iced tea price at just 99 cents. Founded in 1992 by Don Vultaggio and John Ferolito, the brand entered a market dominated by heavyweights like Snapple, Lipton, and Nestea, all of which priced their products around one dollar. However, in a bold move in 1997, AriZona printed its price directly on the can, creating a unique challenge for retailers who might consider increasing it. While inflation would suggest that the price should now hover around $2.30, the steadfast commitment to the 99-cent price point has become a defining aspect of the brand’s identity.
AriZona didn’t just stand out through pricing; its vibrant and colorful can designs echoed a Southwest motif that resonated with consumers. This eye-catching imagery helped establish a strong brand presence, transforming AriZona iced tea into a cultural staple. The loyalty it has garnered created a distinctive fanbase known as "Zonies," with devoted customers celebrating their love for the brand. Notably, some fans have gone as far as to customize their vehicles to resemble the iconic tea cans, showcasing their passion for both the product and its visual identity.
However, the journey to maintain this pricing hasn’t been without challenges. A rift between founders Vultaggio and Ferolito threatened the company’s future. Ferolito proposed selling the company, which could have jeopardized the brand’s grassroots ethos and resulted in increased prices. This dispute escalated into New York’s longest dissolution case, revealing the internal struggles that have shaped AriZona’s path.
Even as other brands faced the pressures of inflation, AriZona’s dedication to keeping its iced tea affordable has set it apart in an increasingly crowded marketplace. The calculated risk of locking in a low price has not only fostered customer loyalty but also solidified AriZona’s unique position as a beloved staple among consumers. Today, as the beverage landscape evolves, AriZona remains a testament to the power of branding, commitment to community engagement, and the importance of sticking to one’s roots amidst changing market conditions.
As the company navigates new challenges, its management’s decisions will play a pivotal role in determining how it evolves while adhering to the core values that made it successful—values that have kept those 99-cent iced tea cans rolling off the shelves for decades.
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Video “How Arizona Has Kept Its Iced Tea 99 Cents | Still Standing | Business Insider” was uploaded on 07/12/2025 to Youtube Channel Business Insider