- The iconic 23-ounce can of Arizona Iced Tea still sells for 99 cents after 32 years.
- Arizona founder Don Vultaggio told Today he didn't want to raise prices for consumers.
- The strategy is unique at a time when food prices are rising and some brands are using shrinkflation to boost profits.
Don Vultaggio, co-founder and CEO of the company that developed Arizona Iced Tea, still sells the product for the same price it did when it was introduced 32 years ago: 99 cents.
Seeing the success of Snapple, Vultaggio decided to get into the tea business and founded Arizona Beverage Company in New York in 1992. Arizona's signature large iced tea cans quickly became a big hit, and Vultaggio still runs the company to this day with the help of his sons.
As grocery prices rise and some brands resort to “shrinkflation” — reducing the amount of product in a package while keeping the price the same — Arizona has managed to keep the iconic 23-ounce can available for the same price.
In an interview that aired on Today this week, Vultaggio said he's often asked how he can sell staples like green tea and iced tea with lemon for such low prices.
“We ship faster, better, closer and our cans are thinner,” he said.
NBC's Savannah Sellers noted that competitors in Arizona are charging even more and asked why they don't just raise their prices and make more money.
“We're successful, we're debt-free, we own everything. Why? Why should people who are struggling to pay rent have to pay a premium for our drinks? Maybe this is a small way for me to give back to society.”
When asked if he planned to raise prices in the future, he replied, “Never say never, but at least not in the near future.”
“We're going to fight tooth and nail for our consumers because they are my friends,” Vultaggio said.
