AriZona Iced Tea founder Don Vultaggio's net worth explored as Trump's tariffs to likely increase its signature 99-cent cans price

Businessman Don Vultaggio, founder of AriZona Iced Tea, appears to be in a situation where he must make a difficult decision. According to a report by The New York Post from August 12, the 99-cent can of tea is likely to get a price hike after decades, following Donald Trump’s imposition of 50% tariffs on aluminum.

The report mentions that 20% of the aluminium used in making the cans for AriZona Iced Tea is imported from Canada. In a statement to The New York Times on August 10, Vultaggio said he expected the tariff issue to be settled. However, if not, the buyers might have to pay more. He told,

“I hate even the thought of it. It would be a hell of a shame after 30-plus years.”

Clement

@88cIement

Don Vultaggio, founder of AriZona Beverages, is strongly opposed to raising the 99 cent price of their iconic iced tea can, a price that has remained unchanged for decades, despite inflation. The 50% aluminum tariff imposed by the Trump administration threatens to increase production costs significantly, especially since AriZona uses over 100 million pounds of aluminum annually, with a fifth sourced from Canada. Vultaggio acknowledges that continued tariffs may eventually force a price hike.

According to Forbes, Don Vultaggio and family have a net worth of $6.2 billion. His initial days in the business started in an old van in Brooklyn. A few years back, his company, AriZona, joined hands with Dixie Brands to launch THC-infused items. As per his statement to the outlet,

“The simple math says if you get the price that makes a consumer want to buy it and buy it again, and the competition doesn't look as good or taste as good, you've got a business.”

AriZona is counted among the best-selling iced tea sellers, having more than $4 billion in yearly sales, The New York Post notes. In an interview with Today, Don Vultaggio was asked why he didn’t increase the price of the beverage. He said,

“We are successful. We are debt-free. We own everything. Why people who are having a hard time paying the rent have to pay more for our drink?”

Don Vultaggio on upholding common sense and what he would like to tell Donald Trump

In The New York Times interview, it was mentioned that Don Vultaggio worked in a brewery after graduating from high school. However, at his workplace, he became inquisitive about pricing and material costs. Looking back on his father’s advice, he said,

“Know your costs and sell it for more than that. Most companies to this day still don’t understand that.”

After spotting bottles of Snapple iced tea being transported, he went home and told his wife that he would like to try his luck in the iced tea business, despite not knowing much about the nitty-gritty of the business. Don Vultaggio said the 99-cent price was almost an addictive selling point. He said:

“Our marketing was never built on anything other than just common sense. And a lot of guts. But it was guts from years of business. I’m a consumer, too. I like deals. I like sales.”

Don Vultaggio said that because Trump discussed tariffs, their prices went up a lot. He hoped the government would understand that if they wanted to protect American companies, they shouldn’t let them overcharge people.

He added that if he could talk to Trump, he would tell him this directly, but whatever happened, they would find a way to manage.

×

Was this article helpful?

Thank You for feedback