Arizona Iced Tea Founder Explains Why He’s Bucked The Inflation Trend And Never Raised Its Iconic 99-Cent Price In 32 Years

In an era where prices seem to be constantly on the rise, one company has bucked the trend and remained committed to its affordable pricing strategy. Arizona Iced Tea, a beloved beverage brand, has maintained its iconic 99-cent price point for an astonishing 32 years, defying the forces of inflation and delighting customers nationwide.

In a recent interview, John Ferolito, co-founder of Arizona Iced Tea, shared the philosophy behind the company’s unwavering commitment to its affordable pricing. “We’ve always believed that our product should be accessible to everyone, regardless of their income level or socioeconomic status,” Ferolito explained. “We’re not just selling a drink, we’re selling a lifestyle. And that lifestyle should be within reach of anyone who wants it.”

Ferolito and his business partner, Don Vultaggio, founded Arizona Iced Tea in 1992 with a simple mission: to create a high-quality, great-tasting beverage that wouldn’t break the bank. The duo’s vision was to offer a product that was not only delicious but also affordable, making it a staple in households across America.

Over the years, as inflation has risen and prices have increased across various industries, Arizona Iced Tea has remained steadfast in its pricing strategy. While other beverage companies have raised their prices to keep up with rising costs, Arizona Iced Tea has absorbed the increases, refusing to pass them on to its loyal customer base.

So, how has the company managed to maintain its 99-cent price point despite the rising costs of ingredients, labor, and transportation? Ferolito credits the company’s efficient operations and commitment to cost-cutting measures. “We’ve always been a lean and mean organization,” he said. “We’ve invested heavily in technology and streamlined our processes to minimize waste and reduce costs. This allows us to maintain our pricing without sacrificing quality.”

Arizona Iced Tea’s pricing strategy has not only helped the company build a loyal customer base but has also contributed to its impressive growth. Today, the brand is one of the largest beverage companies in the United States, with a presence in over 40 countries worldwide.

Ferolito believes that the company’s commitment to affordability has played a significant role in its success. “We’ve created a sense of trust with our customers,” he said. “They know that when they buy an Arizona Iced Tea, they’re getting a great product at a fair price. That trust has helped us build a loyal following and has contributed to our growth over the years.”

As the company looks to the future, Ferolito is adamant that the 99-cent price point will remain a cornerstone of the Arizona Iced Tea brand. “We’re not going to change our pricing strategy anytime soon,” he said. “We’re committed to providing our customers with a great product at a price they can afford. That’s what we’ve always done, and that’s what we’ll continue to do.”

In an era of rising prices and decreasing value, Arizona Iced Tea’s commitment to affordability is a breath of fresh air. The company’s refusal to raise its prices has earned it a loyal customer base and a reputation as a brand that truly cares about its customers. As Ferolito so aptly put it, “We’re not just selling a drink, we’re selling a lifestyle. And that lifestyle should be within reach of anyone who wants it.”