Start swanky with some Fiji water. A bottle of this island goodness will cost you $1.50 on average for a 12 oz. bottle. If you want your skin to look like Jennifer Aniston, maybe you want to invest in some Smart Water for $2.00 for a .5 liter bottle. Or how about some fancy Evian for more than $2 for a liter?
Or even if you go for the cheap stuff like Dasani, Aquafina, or Poland Spring, you will still need more than just a $1 bill to quench your thirst. Damn that is a whole lot of money for just water. Plain ol' water.
Spencer Vultaggio, the Chief Marketing Officer, Co-Owner and son of the company’s founder Don Vultaggio , says that you can count on that price for years to come. So how can they afford to never raise their prices?
Have you ever seen a commercial for AriZona Iced Tea? How about an online ad? A billboard? A celebrity endorsement? No you haven’t and here is why:
According to Vultaggio, "We've been 99 cents for more than 15 years now. 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."
So when you see that water and other beverages are more expensive it is because they are putting Jennifer Aniston’s face all over their commercials. It is because Pepsi and Coke produce high budget commercials. It is because of their fancy packaging and branding. To AriZona it isn’t worth it and they feel like that is just money wasted.
"It comes down to incorporating new technology into our entire process," Vultaggio said. "We pack our cans at almost double the speed as we did in the late '90s, we've thinned out the cans using 40% less aluminum and using more recyclable materials. In terms of shipping costs, we move our trucks at night now to avoid traffic, we produce in more than 40 factories across the country so our trucks often don't have as far to go. It's really about working smarter."
Vultaggio goes further to say, "We feel like it's more important to spend money on something that our customer really cares about, instead of buying billboards or putting our cans in the hands of some celebrity for a few minutes."
In the beginning of the initiative they made their drinks 99 cents to make some noise and it worked. It seems to still be working so why fix it if it ain’t broken?
"The cans are synonymous with 99 cents now. Our fans love it. They recognize it, and it's a big part of our allure. People really do appreciate that. 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," Vultaggio said.