AriZona’s 99-cent iced tea may see a price hike — tariffs could be to blame

Another industry leader is sounding the alarm about tariffs and the cost likely to be passed down to customers

The founder and chairman of Arizona Ice Tea, with its famous tall cans, might be forced to up the price after nearly 30 years

Arizona has been a rare constant in grocery stores and gas stations

A 22-ounce can boldly stamped with 99 cents, offering flavors like lemon, raspberry, peach, and green tea

Chairman Don Voltaggio told the New York Times he may have no choice but to raise prices for the first time since 1997

because of soaring aluminum costs, driven in part by tariffs. The beverage company sells more than 2 billion cans of iced tea each year, generating about $4 billion in sales

In doing so, it uses more than 100 million pounds of aluminum each year

80 of that aluminum is recycled material that is produced in the United States But about 20 of the aluminum comes from Canada Canada faces a possible 35 percent tariff depending on what goods are exempt under the

U.S.-Mexico.-Canada trade agreement. But the big factor right now is the Trump tariff of 50 percent

on aluminum imports. That's already in place. Baltaggio says when it comes to his iced tea

brand, quote, at some point the consumer is going to have to pay the price. The brand's low price

printed directly on its brightly patterned turquoise, pink, and yellow cans and lack of

traditional advertising have helped Arizona compete with giants like Snapple, Lipton, and Nestle

The New Jersey-based company controls every step of its production process, has no shareholders

and no debt, according to Voltaggio. Inexpensive raw materials like water, sugar, and flavorings

have helped keep prices low, until now. He admits that with aluminum cost climbing

the days of the 99-cent can may be numbered. For more unbiased updates, download the Straight Arrow News app or go to san.com