How Don Vultaggio built AriZona into a $4 billion brand without outside investors

8 Min Read

To celebrate his birthday every year, Don Vultaggio uses pajamas to work and spends the day turning pancakes and tortillas on a portable stove for his employees.

The view is unusual, but again, so is the Taggios business approach.

Don Vultaggio, founder of Arizona Bevenge Company, says that the private reference has allowed a degree of writing and flexibility. Newsday through Getty Images

In 1990, Arizona Beverage Company co -founded. Now it is the best -selling ice tea company in the United States, with more than $ 4 billion in annual sales.

In spite of everything, the company has remained privately owned and maintained the price of its high highs in the same 99 cents.

Vultaggios proves the success of your business, in part, to create a unique corporate culture and retain employees.

At Arizona’s headquarters in Woodbury, New York, the staff not only meets for Vultgio’s annual birthday pajamas party, but there are also annual celebrations for Halloween and five of May, the iced tea launched Mayor Dinnerablure filling the wife Taggios. Families are encouraged to attend.

“The work I do affects the sustenance of all those who work [here]”Vultaggio said.” I take it very personally. “

Here, tea spills in other strategies that have Crucial for Arizona’s success.

Arizona’s iconic 22-OZ tallboy has had a price of 99 cents from the shelves of the arrival in 1992. Vultaggio has been able to maintain the price consistent by reducing almost all the lines in the TSN of the product. Arizona drink company

Independence at all costs

Arizona is eclipsed by competitors such as Pepsico and Coca-Cola, but the public property of these giants comes with attached chains: regulatory obstacles, pressures of shareholders, compliance costs and bureaucracy layers.

When something is working, executives can spend months with their meeting.

Being family property and private managed allows Arizona to be agile and agile.

Arizona is a private business and administered by the family. Don (down to the left) founded the company in 1990. His wife, Ilene (below right) is an artist and designed the original Cherry Blossom label. His children, Wesley (up to the left) and Spencer (top right), serve as creative director and Marketing Director of Arizona, respectively. Arizona drink company

If there is a problem, Fillingaggio said: “We change it at lunch.”

In an industry where the development of products usually has been for years, Vultaggio and company. They are able to implement between 12 and 16 new drinks or flavors per year.

This month, two of the most unconventional offer of the brand are the shelves: an iced tea with vodka infusion of 100 calories and a cold coffee of a ball. Vultaggio said that each of them touches about three months to go from conception to store shelves.

In April, Arizona is launching a new Cold Brew coffee product. The drink gives the brand a support point in the cold beer market boom, predicted to grow at $ 16.22 billion by 2032. Arizona drink company

The vodka drink, an update on a previous product based on Malt and the first premium alcoholic beverage in Arizona has succeeded in Canada. Its objective is to be Arizona’s response to High Noon and other hard -conscious drinks of health, an increasingly lucrative market.

Similarly, the coffee drink will give Arizona a support point in a booming beer market, which was valued at $ 3.16 billion in 2024 and is expected to grow at $ 16.22 billion by 2032.

Having spent years perfecting a cold beer elaboration process for teas, and with all the necessary infrastructure that was already in place, the movement was natural for Arizona.

“The elaboration of beer is brewing,” said Vultaggio.

In a typical year, Arizona will produce 12 to 16 new drinks, of which they are unique collaborations with brands ranging from Marvel to 7-Eleven. Arizona drink company

Let the brand speak for itself

Arizona has never published a printed or transmitted ad, but let their drinks speak.

“We do [them] Knew well and price [them] Just, “Vultaggio said about his simplistic approach.” Take care of customs and take care of you. “

Arizona is not announced, but through initiatives such as an emerging store of 99 cents in New York, which presented t -shirts, flap pins, caps, bags, drinks bottles, skating mallets and more aviable to buy, the brand has developed a taste. Arizona drink company

While competitors blow millions in Super Bowl ads (and cut the corners in another place to pay them), Arizona relies on merchandise drops, organic buzzing and associations with companies such as Adidas, Marvel and 7-Eelet and Celous and Zealbase.

It is taking to that model one step further by launching “Club Zona” on May 5, a subscription program of $ 99 a year through which super fans will have early access to limited editing flavors and exclusive products of products.

It is marketing as a community: less about the scope, more about resonance.

Vultaggio delivers a free loot to fans waiting in a row in an emerging event in New York. Arizona will organize another similar event in collaboration with the luxury glasses designer Thierry Lasry in New York from May 1 to 3 in 216 Lafayette Street. Arizona drink company

Keep consistent prices

While inflation and other external factors have forced competitors to increase prices, the intelligent of Filleraggio has allowed him to play with the order lines and maintain the price of Arizona’s ice tea by $ 0.99 consistent.

When growing in Flatbush as the son of a A&P supermarket manager, he worked in almost all steps on the edible stairs and distribution, even building his own beer delivery service.


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When Arizona launched, when he was 40, he knew how each part of the supply chain worked and how to adjust the operations and keep the costs of his and customs low.

Around the years in Arizona, aluminum has retired from the cans, the rail has replaced the transport of trucks where possible (and the rowing trucks now drive with the efficiency of night fuel) and the equipment is internal to reduce.

“If you are a manufacturer, who is easy to spend the price to a consumer,” said Vultaggio, “you are joking”?

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