AriZona Beverages may soon raise its iconic 99-cent price after more than three decades. The United States’ aluminum tariffs are driving this potential change. For years, the company kept its tall cans affordable despite higher costs.
The United States’ aluminum tariffs proposal calls for a 50% tax on imported aluminum. AriZona uses about 100 million pounds of aluminum each year for its tall cans. Most aluminum comes from recycled U.S. sources, yet around 20% arrives from Canada. This portion would face the new tariff.
AriZona founder and chairman Don Vultaggio warns that these tariffs will sharply increase production expenses. He believes the higher costs could finally push a price change after over 30 years. Moreover, he expects domestic aluminum suppliers to raise their prices in response. These changes could pressure many U.S. beverage companies, not just AriZona.
For decades, AriZona has relied on a “no-advertising, low-price” business model. The company prints the 99-cent price directly on every can, making it part of its brand identity. This strategy helped AriZona sell more than 2 billion cans annually and earn over $4 billion in sales. It has achieved these results while staying debt-free and profitable.
However, the proposed United States aluminum tariffs could upset this balance. Vultaggio argues that supporting domestic manufacturers should not allow them to overcharge. He hopes policymakers will protect U.S. industry without hurting consumers. Fair policy, in his view, should boost production while keeping prices reasonable.
The looming price change also shows a wider industry challenge. When tariffs raise raw material costs, companies often pass the expense to shoppers. As a result, consumers may face higher prices on everyday products. AriZona’s situation highlights how trade policies can directly affect retail goods.
Despite these concerns, Vultaggio stays positive about AriZona’s future. He says the company will adapt to any outcome and find solutions. Still, the possible end of the 99-cent price has drawn strong reactions from customers and business analysts alike.
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