Arizona Beverage Company: How An Accident Turned Into Arizona Iced Tea

“Why not increase the price and therefore increase the profit? We’re successful.” That’s Don Vultaggio, chairman and co-founder of Arizona Beverage Company, which currently does about $4 billion in annual sales. Remarkably, this company started by accident. To this day, Don claims he's never sent a text, an email, or even turned on a computer, yet his net worth is estimated at $6.5 billion. Don isn't your average CEO billionaire. He’s committed to keeping prices low without compromising the quality of their drinks—a rare feature among modern CEOs. While most big companies cut costs and raise prices to increase profits, Arizona has maintained its famous 99-cent iced tea price for over 30 years. How did this accidental company achieve such success and maintain its pricing strategy? The Accidental Beginnings In 1992, in Brooklyn, New York, Don Vultaggio and his friend John Ferolito were running a beverage distribution business focused on beer and soda. One cold Februar