Unlike almost every product in the past year, Arizona brand iced tea hasn’t increased in price since 1992.
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“It is the philosophy of the owner of the company who is an American billionaire. He does everything he can to keep the price at 99 cents a can, even if it means lowering his profit margin,” explains Philippe R Bertrand, co-founder and partner at Amplio Strategies.
His secret lies partly in the fact that his company is not on the stock exchange so he is not under pressure from shareholders like other companies.
“There is no company on the stock market that would do that because they would have pressure from the stock, financial markets, etc. He’s someone who started selling products in Brooklyn in the 1970s, he didn’t have it easy,” he says.
Its very low price forces food giants like Netslé and Coca-Cola to keep their prices affordable.
See the full interview to better understand the phenomenon of Arizona products.
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