Arizona Iced Tea Still 99¢? A 2025 Look
More than two years ago, we examined the remarkable staying power of Arizona Iced Tea’s 99¢ price tag. At the time, it was a bold move. A fixed price in an inflationary environment where nearly every competitor had adjusted upward. We asked: was this strategy sustainable or setting the stage for trouble?
It’s time for a check-in. Since our original article, Arizona hasn’t just maintained its headline price. It has doubled down on it, even while expanding its brand, launching new products, and achieving eye-watering revenue milestones. But the story is more layered than a simple “goodwill over profit” narrative.
Here’s what’s happened since and what it says about pricing strategy in 2025.
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Holding the Line on Price… Sort Of
In April 2024, Arizona co‑founder Don Vultaggio appeared on NBC’s Today, reaffirming that the iconic 23 oz cans would remain at 99¢ “as long as we’re breathing.” He highlighted the brand’s independence, lack of outside investors, and commitment to customer loyalty as key enablers.
However, later in 2024, Salon reported that while many cans still display the 99¢ label, Arizona now offers cans without the printed price—giving retailers more flexibility to set their own markups. On Reddit, users noted prices as high as 1.59, and discussed how cans without printed prices are increasingly common in stores (source).
These developments reveal a growing friction between Arizona’s brand promise and the retail reality. While the company continues to champion 99¢ pricing as a point of pride and differentiation, its ability to enforce that price across retail channels has diminished. A brand built on price predictability now competes in a marketplace where shelf-level pricing can vary significantly, raising questions about long-term perception and control.
A $4 Billion Brand Without Paid Advertising
Despite these complexities, Arizona is thriving. By early 2025, the New York Post reported the brand was worth an estimated $4 billion. That’s without major ad spending, outside funding, or a shift in its foundational value proposition. How?
It comes down to operational efficiency and strong brand equity. Arizona uses thinner aluminum cans to reduce costs and owns its production and distribution network, minimizing middlemen. Rather than investing in traditional advertising, the company focuses on fan engagement and organic growth. Add to that Club Zona, a paid loyalty program, along with branded merchandise and even alcoholic tea offerings, and you have a diversified revenue engine that still points to the 99¢ can as its anchor.
Brand as Movement: AriZonaLand and the “Zonies”
In late 2024, Arizona launched AriZonaLand, a museum-style experience and merch shop in New Jersey celebrating the brand and its culture. It wasn’t just a marketing gimmick. It was a manifestation of what Arizona has become: a price disruptor turned cultural icon.
They’ve cultivated a community of “Zonies,” fans who don’t just drink the tea, but evangelize it online and off. That’s a powerful differentiator in a market where many brands fight for visibility with costly campaigns and deep discounting.
Strategic Lessons for B2C and Beyond
What does Arizona’s continued success mean for pricing leaders?
Fixed pricing can work, but only when it aligns with operational discipline, cost control, and brand equity. This isn’t about underpricing. It’s about engineering everything around a price that tells a story.
Transparency matters. Arizona’s brand trust stems from decades of consistency. But as shelf prices drift, the risk of erosion grows. Messaging and retailer partnerships must align.
Product pricing is brand pricing. Arizona’s can isn’t just a beverage. It’s a commitment. Every SKU, campaign, and innovation reflects that central promise.
Final Thought
Arizona continues to defy conventional pricing models, but not through luck. It’s strategy, culture, and cost control working in concert. Want to talk about how your business can apply similar principles, or adapt when you’re in a very different position?
Reach out to our team to discuss pricing strategy that scales with your brand, not against it.
