00:00Another industry leader is sounding the alarm about tariffs and the cost likely to be passed down to customers.
00:07The founder and chairman of Arizona Iced Tea, with its famous tall cans, might be forced to up the price after nearly 30 years.
00:17Arizona has been a rare constant in grocery stores and gas stations.
00:21A 22-ounce can, boldly stamped with 99 cents, offering flavors like lemon, raspberry, peach, and green tea.
00:30Chairman Don Voltaggio told the New York Times he may have no choice but to raise prices for the first time since 1997 because of soaring aluminum costs, driven in part by tariffs.
00:42The beverage company sells more than 2 billion cans of iced tea each year, generating about $4 billion in sales.
00:49In doing so, it uses more than 100 million pounds of aluminum each year.
00:5480% of that aluminum is recycled material that is produced in the United States.
01:00But about 20% of the aluminum comes from Canada.
01:03Canada faces a possible 35% tariff, depending on what goods are exempt under the U.S.-Mexico.-Canada trade agreement.
01:11But the big factor right now is the Trump tariff of 50% on aluminum imports.
01:16That's already in place.
01:18Voltaggio says when it comes to his iced tea brand, quote,
01:21At some point, the consumer is going to have to pay the price.
01:25The brand's low price, printed directly on its brightly patterned turquoise, pink, and yellow cans,
01:31and lack of traditional advertising, have helped Arizona compete with giants like Snapple, Lipton, and Nestle.
01:38The New Jersey-based company controls every step of its production process,
01:42has no shareholders, and no debt, according to Voltaggio.
01:45Inexpensive raw materials like water, sugar, and flavorings have helped keep prices low, until now.
01:52He admits that with aluminum cost climbing, the days of the 99-cent can may be numbered.
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