Overview

• Founder Don Vultaggio says the 50% Section 232 aluminum tariff could trigger the brand’s first tall-can price hike in over 30 years
• AriZona uses more than 100 million pounds of aluminum annually, with about 20% imported from Canada and now subject to the higher levy
• Packaging suppliers such as Independent Can have already increased their rates and Coca-Cola is weighing a shift to plastic containers to manage rising metal costs
• The company plans to offset expenses through efficiency measures and by channeling savings from lower crude oil prices into deeper promotions and a $1 plastic tall-boy offering
• Although cans display a 99-cent suggested price, retailers set final prices independently and some stores have already charged above that level following supply-chain adjustments