Affordable by Design: AriZona’s CEO on Pricing with Purpose
Great value, great product, great package.” It’s a simple philosophy, but for Don Vultaggio, CEO an founder of AriZona Beverage Company, it’s the formula behind one of America’s most
iconic brands.
Born and raised in Brooklyn, NY, Vultaggio entered the beverage business straight out of high school. From merchandising and repacking to selling and delivering, he has done it all. The hands-on experience gave him a unique understanding of the industry and an eye for opportunity.
In 1992, he spotted a gap in the market and launched AriZona Iced Tea with one bold idea: offer a larger 24-ounce can at a lower price point. The now-famous 99¢ AriZona can became an instant hit, redefining value in the beverage aisle. While costs have climbed over the decades, AriZona has remained committed to that price, proving that affordability and quality can coexist. Today, that commitment has paid off, as the privately owned company is valued at an estimated six billion dollars.
From Iced Tea to Hard Tea
With the explosion of the hard tea category, it was only a matter of time before AriZona entered the space. In 2023, AriZona Hard Tea officially launched in the United States, bringing the
same philosophy of great value, great product, great package to the alcoholic beverage market.
The brand produces its hard tea line in Keasbey, New Jersey, at its modernized production hub known as ‘AriZona Land’. This state-of-the-art facility reflects the company’s focus on quality, efficiency, and transparency. It is even open to the public for free tours, giving fans a chance to
see how the brand’s signature beverages come to life.
Initially, AriZona Hard entered the market priced similarly to other established hard tea brands, but Vultaggio quickly realized that did not align with how consumers saw AriZona. For decades, shoppers have associated the brand with affordability and value. So AriZona made a bold move and lowered prices to reflect what they stood for.
It wasn’t an easy decision. Raising aluminum and ingredient costs have put pressure on all beverage producers. Yet, AriZona has stayed true to its roots, betting that higher sales volume will offset higher costs, and so far, that bet continues to pay off.
AriZona is both privately held and debt-free, resulting in the company having the flexibility to absorb certain costs and reinvest in quality and value for consumers. “The average working person deserves a fair price,” says Vultaggio, “but that doesn’t mean you have to compromise on quality.”
To ensure quality, AriZona Hard Tea uses premium ingredients, including six-times distilled vodka. Vultaggio personally samples each new product dozens of times before it ever hits the market, sometimes 40 or 50 rounds, to guarantee it meets his high standards.
Efficiency and Innovation
Part of AriZona’s ability to keep prices low comes from its constant push for innovation in logistics and operations. The company relies heavily on rail transport, with each boxcar carrying the equivalent of five tractor-trailers. That not only improves efficiency and reduces costs but also helps take trucks off the road, which is an environmental win.
Inside its Keasbey warehouse, automation drives additional savings. The fully automated facility reduces energy consumption and labor costs while boosting productivity, allowing AriZona to maintain its aggressive pricing without sacrificing quality.
Looking Ahead
As AriZona Hard Tea continues to expand, the company’s growth strategy centers on creativity and applying lessons from the nonalcoholic side of the business. One standout advantage is the brand’s unmistakable packaging and colorful cans that stand out instantly on the shelf or in the cooler.
Vultaggio believes that the same visual identity, paired with a trusted name and unbeatable value, will propel AriZona Hard Tea to the top of the market. Consumers know when they purchase a product from AriZona, they are getting a great-tasting product, inside a vibrant can, at a price they can feel good about.
In an industry often driven by trends and premium price tags, AriZona continues to prove that authenticity and value never go out of style.
About Kramer Beverage
Kramer Beverage is South Jersey’s largest beer wholesaler and is owned and operated by the Kramer family – through four generations – since 1924. They are based out of Hammonton and serve an eight-county footprint in South Jersey with top brands from Molson Coors, Constellation, Yuengling, Boston Beer, Heineken USA, Pabst, Diageo, FIFCO, and others. Kramer Beverage also distributes wine, spirits, and a variety of craft beers from suppliers such as New Belgium and Sierra Nevada to local favorites, including Cape May Brewing, Flying Fish, MudHen, Double Nickel, Evil Genius, and Glasstown. For more information, please visit www.kramerbev.com.