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    "parsed_content": "Tariffs\u00a0and TradeTariff TrackerTimelineGold Market ShakenCompanies\u2019 Hard ChoicesHigher Prices ExpectedIndirect ShipmentsEurope\u2019s Trade LogicDon Vultaggio leaned over a table and spun a giant lazy Susan until a 22-ounce can of Arnold Palmer appeared before him. It was 2 p.m. and time for Mr. Vultaggio, a founder and the chairman of AriZona Iced Tea, to hold his daily two-hour lunch and board meeting in his Southwest-themed office in central Long Island, N.Y.Behind him was a wall of dozens of bottles and cans from the company\u2019s deep roster of products, and a security monitor showing a live feed of the robot-powered storage and retrieval operations of its largest factory, which is in New Jersey.It has been from this perch that Mr. Vultaggio has spent the last few weeks contemplating what he\u2019s insisted, for most of his company\u2019s three decades of existence, he would never do: raise the 99-cent price of its canned iced teas, AriZona\u2019s calling card since 1997.Image\u201cI hate even the thought of it,\u201d Don Vultaggio, the founder and chairman of the AriZona Beverage Company, said of the prospect of raising the 99-cent price of a tallboy can of the company\u2019s signature iced tea.Credit...Brian Fraser for The New York TimesThe Trump administration\u2019s 50 percent tariff on aluminum imports may leave him no choice.If the price of a tallboy of AriZona Iced Tea had kept pace with inflation, the company would today be selling it for $1.99. Instead, the 99-cent price remains so central to the company\u2019s identity that the numbers are displayed on the can boldly and prominently.AriZona uses more than 100 million pounds of aluminum a year for its cans, and about 20 percent of that comes from Canada. Mr. Vultaggio is hopeful that the tariff dispute will be resolved, but if it is not, he said, \u201cat some point the consumer is going to have to pay the price.\u201d\u201cI hate even the thought of it,\u201d Mr. Vultaggio, 73, said, adding, \u201cIt would be a hell of a shame after 30-plus years.\u201dSouthwestern Motif, Brooklyn RootsAriZona\u2019s affordability has its roots in Mr. Vultaggio\u2019s childhood in the Flatbush neighborhood of Brooklyn, where his father managed an A.&P. grocery store. Dinner conversations, he recalled, focused on retail and labor issues, theft and profit.\u201cKnow your costs and sell it for more than that,\u201d Mr. Vultaggio said, reciting one of his father\u2019s business principles. \u201cMost companies to this day still don\u2019t understand that.\u201dAfter high school, Mr. Vultaggio got a job at a brewery in Bushwick, where he quickly became more interested in the price of the bottles and other materials than in the actual brewing process.Want to stay updated on what\u2019s happening in New Jersey and New York? Sign up for Your Places: Global Update, and we\u2019ll send our latest coverage to your inbox.He and a partner, John Ferolito, started a beer distribution business that would evolve into AriZona. Mr. Vultaggio was making a delivery in Lower Manhattan one cold afternoon in 1991 when he spotted a truck delivering cases of Snapple.Iced tea was not supposed to sell in February, he thought.\u201cI went home that night and told my wife, \u2018We\u2019re going into the iced tea business,\u2019\u201d Mr. Vultaggio said. \u201cI didn\u2019t know beans about iced tea.\u201dHe had no recipe, no name, no label design, nothing to set himself apart from the Snapples, Liptons and Nestl\u00e9s of the world. Turquoise and Pink Set the SceneImageMr. Vultaggio introduced the 99-cent tallboy can in 1997. By 2000, he said, sales had gone up 30 percent.Credit...Brian Fraser for The New York TimesIlene Vultaggio had only recently finished designing the family\u2019s pueblo-style house in Rockaway Beach, Queens, when her husband came to her with his idea for a new beverage company.\u201cEverything in the house was Southwest to the extreme,\u201d said Mrs. Vultaggio, 72, a pastel artist. \u201cTurquoise. Pinks. Yellows. I always loved it.\u201dSo when Mr. Vultaggio asked her to design a logo for the new company, she sketched what she knew: a turquoise, pink and yellow sunburst. The couple\u2019s sons, Wesley and Spencer, helped color it in with crayons and colored pencils.Then came the name. They wanted something customers would be familiar with that would stand out in the cooler, and landed on \u201cArizona.\u201d Mrs. Vultaggio added flair to the lettering by capitalizing the \u201cZ.\u201d She would later design a label for the company\u2019s green tea flavor with ginseng and honey that was inspired, in part, by one of her children\u2019s coloring books.A Business Model Built on BasicsMr. Vultaggio said he has run his company according to three simple rules: Make it taste good, make it look good and price it right. In fact, starting in September, AriZona plans to lower its $1.25 plastic bottled beverages to $1.But pricing it right has not always been easy, he said.Just as AriZona was hitting the market, the aluminum industry and businesses that relied on the metal were alarmed as the Soviet Union, then the top supplier, suffered political and economic collapse. AriZona raised the price of its canned iced tea above $1. Sales immediately took a sharp hit, Mr. Vultaggio said.But as aluminum prices eased, Mr. Vultaggio returned to the lessons his father had taught him at the A.&P., he said. He introduced the 99-cent tallboy in 1997. By 2000, he said, sales were up 30 percent.Retailers initially bristled at Mr. Vultaggio\u2019s insistence on printing \u201c99 cents\u201d on the can, locking them into that price. But the 99-cent selling point quickly became \u201clike heroin\u201d for customers, he said. They couldn\u2019t get enough.\u201cOur marketing was never built on anything other than just common sense,\u201d Mr. Vultaggio said. \u201cAnd a lot of guts. But it was guts from years of business. I\u2019m a consumer, too. I like deals. I like sales.\u201dAriZona, which is privately held, sells about two billion cans annually, roughly half of which are the signature tallboys, in addition to glass bottles and gallons of varieties of iced tea, juice, energy drinks and coffee, Mr. Vultaggio said. Gummy snacks, ice pops and promotional merchandise are also on offer. While the can prices have been frozen in time, the company said it had \u201cadjusted prices where absolutely necessary\u201d on its other products.AriZona\u2019s success at keeping prices low for three decades relies on other factors, too.VideoIn addition to tallboys, AriZona sells glass bottles and gallons of varieties of iced tea, as well as juice, energy drinks and coffee.CreditCredit...The company is largely vertically integrated, meaning that it controls every step of the production process. The company ran railroad tracks from a freight line so it could bring tankers of sugar directly to AriZonaLand, its factory in Keasbey, N.J., several times a day.Mr. Vultaggio has no shareholders to answer to, and his company has no debt, he said.\u201cI hate the look of it, I hate the smell of it,\u201d he said, adding, \u201cI like to sleep at night.\u201dThis combination gives Mr. Vultaggio \u201ca lot of control over the operations,\u201d said Jim Salera, a food and beverage analyst at Stephens, an investment banking firm. Inexpensive materials \u2014 water, sugar and other flavorings \u2014 have also probably helped AriZona stick to the 99 cent price, he said.One key to the company\u2019s success is strong brand loyalty among customers, many of whom are now old enough to have introduced AriZona Iced Tea to their children.\u201cThey\u2019ve not only survived, they\u2019ve prospered,\u201d said Stephen Zagor, an adjunct assistant professor at Columbia Business School. \u201cThey became one of those companies that not only sells a product, but tries to sell their culture. And they do it cheaply.\u201dThese days, that culture includes collaborating with brands to put AriZona\u2019s signature colors on Gen Z-friendly clothing, and focusing the company\u2019s story on Mr. Vultaggio himself. At a recent storefront pop-up event in the SoHo neighborhood of Manhattan, 12-year-olds were asking for \u201cDon,\u201d whose fandom is growing on TikTok.Tariffs Come for the TeaImageAirZonaLand in Keasbey, N.J., is the company\u2019s largest plant. Credit...Brian Fraser for The New York TimesAriZonaLand, the company\u2019s largest factory, would make Willy Wonka blush: There are cherry blossom-print floors and light fixtures made from recycled bottles; a rainbow of colorful cans whiz by on conveyor belts. A company tag line is displayed in neon: \u201cI Love Big Cans.\u201dNow they could become collector\u2019s items.About 80 percent of the aluminum AriZona uses to make its tallboys comes from recycled material produced in the United States. The rest is imported from Canada, and subject to a 50 percent import duty. Mr. Vultaggio declined to comment on any steps AriZona has taken to mitigate the financial impact.\u201cOur price has been dramatically bumped up because of this tariff talk,\u201d Mr. Vultaggio said, adding that he expected the few domestic aluminum manufacturers to raise their prices in response to the tariffs.President Trump has maintained that increasing tariffs on international goods would benefit the United States by boosting domestic manufacturing, addressing trade deficits and raising revenues for the U.S. government.VideoAbout 80 percent of the aluminum AriZona uses to make its cans comes from recycled material produced in the United States. The remainder is imported from Canada.CreditCredit...\u201cI hope the administration understands and deals with the fact that if you\u2019re going to protect American manufacturers, you can\u2019t allow them to gouge the marketplace because of that protection. If I had Donald Trump\u2019s ear, that\u2019s what I would tell him directly.\u201dFor the moment, Mr. Vultaggio is clinging to cautious optimism.\u201cWhat happens, happens,\u201d he said. \u201cWe can find our way through it.\u201dRemy Tumin is a reporter for The Times covering breaking news and other topics.A version of this article appears in print on Aug. 10, 2025, Section A, Page 1 of the New York edition with the headline: An AriZona Can Over 99 Cents? Tariffs Put the Pinch on Tallboys.. Order Reprints | Today\u2019s Paper | SubscribeSee more on: Donald TrumpShare full articleRelated ContentAdvertisementSKIP ADVERTISEMENT",
    "ai_headline": "An AriZona Can Over 99 Cents? Tariffs Put the Pinch on Tallboys.",
    "ai_simplified_title": "AriZona Iced Tea Faces Tariff Impact on 99-Cent Price",
    "ai_excerpt": "AriZona Iced Tea may have to raise its 99-cent price due to tariffs on aluminum imports. Founder Don Vultaggio is hesitant, but the tariffs could force a price increase after 30 years. The article explores the company's history and the impact of tariffs.",
    "ai_subject_tags": [
        "Business",
        "Tariffs",
        "AriZona Iced Tea",
        "Pricing",
        "Aluminum",
        "Trade",
        "Consumer Goods"
    ],
    "ai_context_type": "News",
    "ai_context_details": {
        "tone": "informative",
        "perspective": "neutral",
        "audience": "general",
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