For nearly 30 years, AriZona Iced Tea’s tallboy cans have been a rare constant in America — always 99 cents, no matter what. But that streak may finally be coming to an end, and the reason has a lot to do with Washington.
Founder and chairman Don Vultaggio says the brand is facing serious pressure from Donald Trump’s new 50% tariff on aluminum imports from Canada. AriZona uses over 100 million pounds of aluminum every year to make its signature cans, and roughly 20% of that is sourced from Canada.
If the tallboys had kept pace with inflation since their debut in 1997, they’d already be ringing up at about $1.99. But AriZona has made the 99-cent price part of its identity, stamping it on every can and refusing to raise it — even when rumors popped up online after photos of $1.29 cans went viral (those were Canadian prices, not U.S.).
Vultaggio has managed to keep prices low by keeping AriZona debt-free, vertically integrated, and sourcing 80% of its aluminum domestically. But with the new tariff in place, he expects U.S. aluminum producers to raise prices too, making it harder to hold the line.
The 73-year-old businessman built AriZona’s business model around affordability, inspired by his Brooklyn upbringing. While he still hopes the tariff situation gets resolved, he admits that eventually “the consumer is going to have to pay the price.”
