How Is AriZona Ice Tea Still So Cheap?

AriZona ice tea has been a staple of my family's road trip gas station pit stops for as long as I can remember. And for as long as I can remember, the tall, artfully designed cans of Mucho Mango and Green Tea with Ginseng and Honey have cost just 99 cents — to ensure consistency, that price is even emblazoned on the can (if an establishment dares attempt to sell AriZona ice tea for more than 99 cents, we politely take our business elsewhere).

AriZona is one of few food and beverage brands that have escaped inflation. The price of its big cans has held steady at 99 cents for 30 years. The company keeps costs low by limiting spending on advertising (with a 99-cent price tag, you don't exactly need marketing), reducing the aluminum content of cans, and even driving delivery trucks at night to avoid traffic and save money on gas.

99 cents in 1992 (the year AriZona's first product became available) has the same buying power as $2.23 in May 2024, according to the Consumer Price Index Inflation Calculator. And frankly, most Americans would probably happily pay $2.25 for a tall can of iced tea in this economy — it seems like a fair price. So why does AriZona keep its big cans priced at less than a dollar when it could easily get away with charging more than double that? The answer is simple: "I'm committed to that 99-cent price," AriZona founder and co-owner Don Vultaggio told the Los Angeles Times. With ever-rising grocery costs, he added, "Consumers don't need another price increase from a guy like me."

Keeping prices low for consumer means cutting costs in other areas, like advertising. Rather than shell out millions for expensive marketing campaigns, AriZona relies on its iconic, instantly recognizable cans and jaw-droppingly low prices to capture consumers' attention. AriZona also keeps overhead low by minimizing packaging costs — those iconic cans now use 40% less aluminum than they did in the 90s thanks to improved packaging technology. Additionally, the company has boosted profits in other areas, introducing new, higher-margin products like SunRise hard seltzer, fruit snacks, and energy drinks.

Despite the challenges, AriZona has stubbornly refused to raise prices on its big cans. The company started printing the 99-cent label on its 23-ounce cans in 1996 to ensure price consistency across retailers, and has continued the practice to this day.

When an image of an AriZona ice tea big can with a $1.29 label emblazoned on its side went viral in 2022, iced tea lovers across the internet assumed the worst — the company had finally capitulated to inflation and raised prices by 30 cents. But AriZona quickly corrected this misconception, clarifying that the can in question was Canadian — in Canada, the standard price is $1.29. "Hope this clears things up. Don't panic," the brand wrote on social media. 

Will AriZona ice tea resist inflation forever? Let's be real, probably not. A price hike is almost inevitable. But for now, I'll unwind from the stress of dynamic fast food pricing and $16 McDonald's meals with the ultimate inflation antidote: an ice-cold can of AriZona Ice Tea.