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AriZona Ice Tea — which is actually located in New York — has established a brand for itself through decades of charging just $0.99 cents for its 23-ounce cans of beverages. Because of tariffs imposed by Donald Trump, however, that may soon change.
According to reports, AriZona Ice Tea — which was able to continue charging $0.99 through historic events like the 2008 financial crisis and the pandemic — is considering raising the price of their signature product due a 50% tariff on aluminum put into place by Trump.
Similar to how Cosco co-founder Jim Sinegal was almost maniacal about the price of their hot dogs — once famously telling the company’s CEO, “If you raise the [price of the] effing hot dog, I will kill you” — AriZona founder Don Vultaggio has long felt the same way about AriZona’s price point.
“I hate even the thought of it. It would be a hell of a shame after 30-plus years,” the 73 year old Vultaggio told The New York Times.
Trump’s tariffs, however, have put Vultaggio and AriZona in a position where they may have no choice but to raise their prices.
Donald Trump’s tariffs on aluminum may force AriZona Ice Tea to raise prices for first time in 30 years
“Mr. Vultaggio has spent the last few weeks contemplating what he’s insisted, for most of his company’s three decades of existence, he would never do: raise the 99-cent price of its canned iced teas, AriZona’s calling card since 1997. The Trump administration’s 50 percent tariff on aluminum imports may leave him no choice.” [via The New York Times]
Not only would moving away from the $0.99 cent price point be a blow to consumers, but also AriZona’s brand, as charging less than $1 for their drinks has become the core feature of their brand.
AriZona Iced Tea is still 99 cents https://t.co/Ih9ZAkjtZU
— AriZona Iced Tea (@DrinkAriZona) January 22, 2025
still 99 cents https://t.co/Uu7wMK5EeO pic.twitter.com/u7mS4U7gaL
— AriZona Iced Tea (@DrinkAriZona) March 11, 2025
“I hope the administration understands and deals with the fact that if you’re going to protect American manufacturers, you can’t allow them to gouge the marketplace because of that protection. If I had Donald Trump’s ear, that’s what I would tell him directly,” Vultaggio added.