Don Vultaggio surrounded by tons of of cans of AriZona iced tea.Emily Christian/Enterprise Insider
Cofounder of the corporate behind AriZona iced tea, Don Vultaggio, is value practically $6 billion.
Not like different billionaires, together with Elon Musk and Jeff Bezos, Vultaggio by no means went to school.
He attributes his success to giving clients service and worth and treating workers like household.
In an period when American billionaires are minted in Silicon Valley and fortunes are constructed on algorithms and synthetic intelligence, Don Vultaggio stands out.
With a web value of practically $6 billion, the 73-year-old cofounder of Arizona Beverage USA made his billions largely by promoting $0.99 cans of iced tea which have turn out to be as iconic as they’re reasonably priced.
Not like ultrawealthy college alums, together with Elon Musk, Jeff Bezos, and Warren Buffett, Vultaggio by no means went to school. In actual fact, he mentioned he most likely would not have completed highschool if his mom hadn’t stepped in.
“I wasn’t a very good pupil, nevertheless it wasn’t the varsity’s fault. It was my fault, and it labored out for me, however generally it does not work out,” Vultaggio informed Enterprise Insider’s Emily Christian throughout a latest interview at AriZonaLand in Keasbey, New Jersey.
Vultaggio mentioned that mentorship, not formal training, laid the inspiration for his profession.
When he was a young person, nonetheless at school, Vultaggio mentioned he started working for his first boss at a Brooklyn grocery retailer, incomes $1 per hour. “That man gave me the expertise of being a enterprise individual,” he mentioned. The job taught Vultaggio the worth of $1 and the way lengthy an hour can final.
When that boss died just a few years in the past, the household despatched his ashes to Vultaggio. “He is buried in my yard, and a plaque there that claims ‘World’s biggest boss.'”
A Brooklyn grocery retailer.Spencer Platt/Getty Photographs
After graduating from highschool, Vultaggio was nonetheless working in grocery shops, similar to his father, who’d been within the enterprise his complete profession. “He mentioned, I do not need my son within the grocery store enterprise,” Vultaggio recalled. “So he acquired me a job at an area brewery.”
A few years later, the brewery closed, instructing Vultaggio an necessary lesson in enterprise: “I at all times say that when companies fail, they forgot what the shopper needed,” he mentioned, “It was a model of beer that was well-liked at some extent however then misplaced its recognition.”
For concerning the subsequent 20 years, Vultaggio ran his personal multibrand beer-distributing enterprise that he grew from the bottom up. “I went to robust neighborhoods in New York and introduced beer to bodegas within the metropolis.”
He mentioned it labored out as a result of, whereas his beers weren’t the most cost effective, he gave his clients service and worth after they wanted it — a trait that served him nicely when he lastly co-founded Arizona Beverage USA, aka AriZona, with John Ferolito in 1992.
Each AriZona tallboy has 99¢ printed proper on the can.Emily Christian/Enterprise Insider
“After I first began the model, I did not know something about iced tea aside from I drank it after I was a child. I did not know the right way to develop it, supply it, the right way to make it — all that type of factor, however I realized on the job,” Vultaggio mentioned.
What he did know entering into was how clients shopped for drinks as a result of he’d seen it firsthand numerous instances within the shops and retailers he’d delivered to for therefore a few years.
“Customers decided proper on the cooler. It did not matter what they noticed yesterday on tv on a business. They decided proper there, and a worth signal motivated that call,” he mentioned.
These instincts ultimately led Vultaggio, in 1997, to do what certainly one of his salesmen mentioned was the dumbest thought he’d ever had: print “99¢” proper on his iced tea tallboys.
A can of AriZona’s inexperienced tea with ginseng and honey.Emily Christian/Enterprise Insider
“Since I did not have the sources to compete with Coke and Pepsi on promoting, I mentioned I’ve acquired to have a can that jumps out of the cooler,” Vultaggio mentioned.
By 2000, gross sales have been up 30%, he informed The New York Instances. At this time, AriZona is likely one of the main ready-to-drink tea entrepreneurs within the US, promoting about 2 billion cans a 12 months and producing $4 billion in gross sales, in response to Forbes.
Whereas its tallboys are the corporate’s declare to fame, it additionally sells gallon-sized jugs and smaller plastic bottles of its teas, juice cocktails, and vitality drinks.
Vultaggio attributes his success to a couple issues.
“When any individual lays their hard-earned greenback on a desk and will get a can of tea or juice, and so they say, ‘Wow, that is a very good deal.’ I’ve now secured that buyer.”
Vultaggio mentioned he is concerned with each side of manufacturing, together with style exams.Emily Christian/Enterprise Insider
Initially, what set AriZona drinks aside was its giant 24-ounce cans, embellished in colourful designs that Vultaggio’s spouse created, promoting on the identical worth as its rivals’ smaller bottles. At this time, it is the truth that the corporate hasn’t raised the $0.99 worth on its huge cans in 33 years, regardless of inflation and worth hikes by different main manufacturers, together with Nestlé, Lipton, and Snapple. The corporate has, nonetheless, lowered the dimensions of its huge cans to 22 fluid ounces.
Not every little thing’s been clean crusing. Vultaggio spent a few decade in a bitter authorized dispute along with his former enterprise associate, Ferolito, who needed to promote his stake within the firm. Vultaggio ultimately purchased out Ferolito’s stake for a reported $1 billion in 2015.
Proudly owning the corporate is an enormous a part of why he is managed to maintain prices down, even throughout the pandemic when transportation prices elevated. “We personal every little thing; we are able to afford to carry the road. We did not have some financial institution or some board of administrators or some stockholders saying, ‘What are you doing?'” he mentioned.
In the meantime, Vultaggio’s web value has practically doubled from $3 billion in 2018 to just about $6 billion in 2025, in response to Forbes.
Vultaggio at AriZonaLand in New Jersey.Emily Christian/Enterprise Insider
Regardless of his immense wealth, Vultaggio nonetheless describes himself as a “common man.” From forklift drivers to executives, Vultaggio says he believes in working a enterprise like a group the place individuals deal with one another with respect.
“That is why we’re profitable,” he mentioned. “Not simply me. Lots of people, 1000’s of individuals, all contributing regularly. I inform individuals, you must run a enterprise prefer it’s a household.”
