Photo: Jonathan Gibby / Getty Images
The company AriZona Beverages does not have in its plans to increase a only penny the price of its famous cans of iced tea.
Its founder, Don Vultaggio, assured that their iconic 23 ounce cans of iced tea will keep their price of $0.100 cents, regardless of that inflation has reached its highest level in the last four decades.
The decision of AriZona Beverages seems crazy in an environment of high prices , also for producers, in which other brands such as Pepsico have reported profits from the rise in the prices of their drinks.
However, for Vultaggio, AriZona’s promise to keep its tea cans at the same price that has kept for 30 years is a promise of value that generates loyalty among consumers.
“Since I started as a worker and a true worker, I recognize how important it is, from a manufacturing point of view, to help maintain prices so that consumers do not suffer the consequences of higher prices, “said Vultaggio.
In an interview with Yahoo!Finance The founder of AriZona Beverages said that he has seen inflation in other years and that has not meant changes in his pricing policy, so he does not consider he has reasons to take a different step.
How does AriZona keep the price of their cans of iced tea down
The founder of the company has an answer that seems simple but, in his own words, implies “a lot of things”.
This is production efficiency. Reducing production times and making distribution more efficient is the secret of this beverage brand so as not to burden its consumers with costs.
Vultaggio He said that reducing the quality of the product is not the answer he is looking for to the equation posed by high costs of production.
“If not producing it faster. Making it more efficient. Handling it less in the warehouse, putting it on trains instead of trucks. Solar panels on the roofs, faster machines”, he listed.
However, the company has suffered the decision with margins that have been reduced , recognized its founder; however, these losses are recovered with an increase in sales.
In addition to production efficiency, the beverage brand is committed to reducing advertising costs and instead uses the image of its famous cans as a positioning strategy.
You may also like:
– Walmart increases to 10 cents the discount on the gallon of gasoline for your members plus
– Meta plans to open its first physical store to sell virtual reality devices
– Inflation: Coca-Cola turns to refillable glass bottles to combat rising prices