ARIZONA BEVERAGE COMPANY
The agreement with AriZona Beverages started with the licensing and manufacturing of the shelf stable, 23-ounce commemorative can. This changed our future to one of a meteoric rise in sales. No longer would this be experimental. Currently, AriZona is close to $1.5 billion privately-held company and the marketer of the nation’s number one ready-to-drink tea. But back in 2001, we were a much smaller entity and AriZona readily admits they were merely guessing (based on our enthusiasm) that the product might see some success. Good guess.
AriZona has experienced multiple years of 100% growth in the line of Arnold Palmer beverages and, as of 2009, they were exceeding $50 million in annual sales. In 2015, the line is now at a retail total of nearly $300 million. They also sell to stores in Asia, Europe, South Africa, Mexico, Canada and South America. The line now consists of the original flavor (made from five select black tea blends and a lemon extract), along with Green Tea /Lemonade products, a Pomegranate/Black Tea version, Strawberry, Peach and many more wonderful-tasting flavors and package sizes.
Packaging ranges from 12-ounce cans in refrigerated 12-packs, 23-ounce cans, 20-ounce plastic golf ball shape bottles, 34-ounce bottles, 42-ounce bottles, 64-ounce and gallon jugs, as well as the newer mix sticks for mixing into a bottle of water, water enhancers and Arnold Palmer Dunkin’ Donuts Coolattas.
The line has been, by far, the fastest-growing ice tea flavor in America and is expanding from a niche drink to a mainstream beverage.
As of June 2009, AriZona’s Arnold Palmer Teas were the fastest-growing, ready‑to-drink iced tea brands in the country.
Beginning in 2009, we added several new flavors of Arnold Palmer Tea. One of my personal favorites is the Peach Tea and Lemonade. Another popular flavor turned out to be the Strawberry version. As we added more flavors, AriZona’s supermarket shelf space began to grow and by 2012, the Arnold Palmer Tea Half and Half line was now the fourth-largest tea brand in the country.
In 2009, we modified the contract with AriZona, which in turn signaled to them that we were going to be committed and dedicated partners. Our business was doubling for several years in a row as more and more supermarket chains gave us space in the ready-to-drink grocery aisles. AriZona was turning on the selling machine. By 2012, we had retail supermarket sales of $200 million. We were closer to 25% of AriZona’s total supermarket sales at the time.