When it comes to food items that have been resistant to raising prices in the face of inflation, it's been the Costco $1.50 hot dog combo and the 99-cent AriZona Iced Tea.
One of those items could soon be going up in price, thanks to tariffs imposed by President Donald Trump.
What Happened: Tariffs on aluminum have prompted the beverage sector to seek alternative product sources and explore other containers for their products.
For beverage company AriZona, best known for its 99 cent iced tea, the higher tariff prices could lead to changing the iconic pricing structure for the bestselling iced tea in America.
AriZona founder Don Vultaggio has fought against changing the price of the beloved beverage for years, but admitted recently that the company may be forced to do so unless the price of aluminum tariffs for Canada comes down.
"I hate even the thought of it," Vultaggio told the New York Times. "It would be a hell of a shame after 30-plus years."
AriZona launched in the early 1990s and has had the 99-cent price printed right on its tall cans of iced tea, creating a signature tagline for the company and a price that the company became famous for.
"At some point, the consumer is going to have to pay the price."
Vultaggio said he hopes the Trump administration understands and prioritizes protecting American manufacturers.
"You can't allow them to gouge the marketplace because of that protection. If I had Donald Trump's ear, that's what I would tell him directly."
The company uses 100 million pounds of aluminum to produce a batch of its signature cans of iced tea, with 20% of the aluminum sourced from Canada and 80% from recycled materials in the U.S., as reported by The New York Post.
Vultaggio previously told "Today" that the company is debt free and takes on higher costs instead of passing rising costs on to consumers.
"Why have people who are having a hard time paying their rent have to pay more for our drink?" Vultaggio previously said. "Maybe it's my little way to give back."
Why It's Important: AriZona has maintained its low price for over 30 years, surviving high inflation, recessions, supply chain issues and the COVID-19 pandemic. However, it could be Trump's tariffs that do in the company's famous pricing model.
The 99-cent price has become part of the company's brand awareness and marketing push, which is essential for a company that has never run a print or broadcast advertisement.
"Our marketing was never built on anything other than just common sense. And a lot of guts. But it was guts from years of business. I'm a consumer, too. I like deals. I like sales."
The company sells around two billion cans annually, with approximately 50% of sales coming from the 99-cent tallboys.
With around $4 billion in annual sales, AriZona is America's top-selling iced tea company.
Fans of the popular iced tea beverage have expressed their frustration with potential price hikes online.
"This is a sure sign of the apocalypse!" one user said.
Another user said 99 cent AriZona was "the only thing keeping the social contract intact."
"End of an era for budget beverage lovers," another user said.
Beverage companies like The Coca-Cola Company (NYSE:KO) have expressed the potential for higher costs due to aluminum tariffs and a change in packaging for products to offset costs.
Coca-Cola is the owner of the Gold Peak iced tea brand, which could benefit from higher prices from AriZona.
PepsiCo (NASDAQ:PEP) and Unilever (NYSE:UL) own joint ventures for the Pure Leaf and Lipton brands of ready-to-drink iced tea. Both brands could see a boost with higher prices for AriZona and many of the company's products coming in plastic bottles.
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