Particle.news

Download on the App Store

AriZona Warns 99-Cent Tall-Can Price Could End Under 50% Aluminum Tariffs

Founder Don Vultaggio said tariff-driven cost increases from a 50% aluminum levy on Canadian imports have raised expenses, threatening the first price increase in over 30 years.

Overview

  • In an August 13 New York Times interview, Vultaggio blamed President Trump’s proposed 50% Section 232 tariffs for “dramatically” bumping up AriZona’s production costs and said the company may have to abandon its 99-cent price point.
  • The brand uses about 100 million pounds of aluminum each year, roughly 20% of which is imported from Canada and exposed to the doubled levy.
  • Domestic can makers such as Independent Can have already raised sheet-metal prices twice this year after initially absorbing the tariff impact.
  • Coca-Cola and other major beverage companies are evaluating plastic packaging or cost passes to consumers if aluminum tariffs remain in force.
  • AriZona has not officially raised its tall-can price but Vultaggio warned that sustained input-cost pressures will likely force the first price hike since the early 1990s.