As you walk up to the fridge at 7-Eleven, and consistently watch the price of your Gatorade, Snapple, and even water rise, you can somehow always count on Arizona iced tea to be its cheap, 99-cent self.
Arizona is on top when it comes to iced tea sales, and has still managed to keep the price for its 23-ounce tall cans under $1 over the years.
But how, Sway?
In an interview with Thrillist, Arizona co-owner Spencer Vultaggio revealed how they’ve been able to keep the 99-cent price for over 15 years, saying the brand uses its money strictly on the product, and not advertising.
“It’s a big part of our overall strategy, and our business model is such that we don’t advertise for example, and we put those costs towards giving our consumer the value they want and expect.”
The secret is as simple as them keeping things simple.
The low price hasn’t come without some hardships, though, as in 2015, Quartz reported that seemingly healthier tea alternatives are making moves on Arizona.
Not only that, but as Arizona stays away from any marketing, big name brands have been going even harder, putting more money behind their drinks over the last couple of years.
A photo posted by AriZona Iced Tea (@drinkarizona) on
Arizona has still stayed afloat, though. There are some sick grocery stores that might make you think otherwise by trying to finesse its profits and plastering $2.00 stickers over the can:
— diamond (@qweenpush) January 11, 2015
But thankfully, Arizona has a way of keeping its customers minds at ease through some witty social media work:
— AriZona Iced Tea (@DrinkAriZona) August 21, 2014
In a way, the familiar 99-cent price is enough marketing in itself. It has become something we’ve become accustomed to, and we know will consistently be there.
“People really do appreciate that,” Vultaggio added. “They’ve grown up with us and they’ll always know they can head to their local store and our drinks will be 99 cents.”
So unless something tragic happens, (knock on wood) we know that the 99-cent price point is definitely on purpose, and will probably stay that way.