Business, Finance & Tech
Arizona Iced Tea May End 99-Cent Can Tradition Amid Rising Aluminum Costs
For more than three decades, Arizona Iced Tea has held on to one of the most famous deals in the beverage industry — a 22-ounce can for just 99 cents. But that tradition is now under pressure as the Arizona Beverage Company struggles with rising aluminum costs and new tariffs.
According to an NBC report, the company uses over 100 million pounds of aluminum each year to produce its signature cans. Roughly 20% of that aluminum supply comes from Canada. In June, the White House announced tariffs on Canadian aluminum would double by 25%, adding to a surge in global costs.
Aluminum prices have risen about 40%, dramatically increasing expenses for Arizona Beverages. If the price of aluminum is $1 a pound, that adds an extra $40 million in costs for the company.
The beloved 99-cent can has remained unchanged since the early 1990s, despite inflation and fluctuating production costs. The company has long prided itself on keeping the price steady, a point often highlighted on the cans themselves.
Currently, a plastic bottle of Arizona Iced Tea sells for about $1.25, though the company has suggested that price could be lowered back toward $1 once supply pressures ease. Whether the 99-cent can survives, however, remains uncertain.
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By: NBC Palm Springs
August 21, 2025
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