AriZona Beverage

Paper 1
1-Name of Company: Arizona Beverage Company
2- Your Name_________________________
3- Why did you select this company?
I selected Arizona Beverage Company for this analysis due to its prominent standing and
reputation within the beverage industry, consistently ranking among top competitors and earning
positive reviews for its commitment to using real and natural ingredients. The company's
alignment with sustainability and social responsibility trends, such as using sustainably sourced
ingredients and supporting various social and environmental initiatives, adds depth to its appeal
as a subject for analysis. In light of the dynamic challenges facing the beverage industry, such as
shifts in consumer preferences towards healthier options and supply chain disruptions, Arizona
Beverage Company presents an intriguing case study for examining how a midsize beverage
company can thrive in a competitive market while addressing ethical and environmental
considerations.
4a- Company Size:
 Revenue: $3 billion in 2022.

 Number of Employees: 1001
4b- Company products and services:
Arizona Beverage Company is best known for its iced tea product:
i. Iced tea
ii. Juice cocktails
iii. Energy drink
iv. Lemonades
5- Company Management Style
Arizona Beverage Company adopts a decentralized and collaborative management style

that empowers employees, promotes open communication, and encourages adaptability. This
approach aligns with the company's commitment to simplicity and authenticity, enabling them to
respond swiftly to changing consumer preferences in the competitive beverage industry.
6- Company External Environment
Arizona Beverage Co’s business environment has external elements that are complex and
competitive all over the place. Consumer preferences in the beverage industry change very
frequently, thus the company needs to constantly track industry developments and changes. The
industry also experiences some external forces such as economic upswings, health and wellness
trends, and environmental matters that affect the production and marketing plans. Among the
competitors of AriZona Beverages include PepsiCo, Danone, Kraft Heinz Company, Coca-Cola
and Keurig Dr Pepper.
7- Company Culture:
Arizona Beverage Company’s culture is characterized by simplicity, authenticity, and an

unreserved dedication to environmental sustainability. They are known for using real, natural
ingredients, adhering to a simple and truthful approach with their products and communication
and participating in sustainability. This cultural framework has not only helped in creating brand
identity of the company but also positioned them as a unique player within beverage industry,
appealing to consumers who seek authentic, environmentally conscience beverage choices.
8- Company Ethical policy and its social responsibility:
Arizona Beverage Company upholds its stand of ethical codes of conducts and social
responsibilities. Their commitment in this regard is reflected by focusing on such things as
ethical sourcing practices, sustainability efforts that go far towards minimising their impacts on
the environment, involvement in social projects aiming to benefit the neighboring community
and a fair society, offering of health With their extensive approach in ethical principles and
social responsibilities, they not only demonstrate a commitment towards practicing responsible
business but it also reflects society’s escalating expectations on consumers or the public at large
thus boosting their corporate image.
9- Company Planning Issues
One of the primary planning issues facing Arizona Beverage Company is the need to
adapt to evolving consumer preferences in the beverage industry. As health consciousness grows
among consumers, there is an increasing demand for healthier and more natural beverage
options. Arizona Beverage Company must strategically respond to this shift by adapting its
product offerings to include low-calorie, natural, and organic products while maintaining the
brand's authenticity and taste. Meeting this demand while staying true to their roots poses a
strategic challenge for the company's planning processes, requiring a delicate balance between
traditional offerings and the changing landscape of consumer preferences.
10- Important decisions made recently by management
In a recent critical decision, the management of Arizona Beverage Company, led by

Chairman and founder Don Vultaggio, has reaffirmed their commitment to uphold their iconic
99-cent price tag on their 23-ounce cans of AriZona Iced Tea. This strong position is taken at a
time when inflation is soaring and cost of production is increasing, and hence this is a
remarkable stand in a market where price increases are considered to be an inescapable solution
to such problems. Arizona’s unusual approach to business is based on mouth-to-mouth
marketing and comments of satisfied customers, which help Arizona minimizing the ad costs.
The 99-cent pricing strategy is another unique value proposition that the company employs. They
continue diversifying their product offering while maintaining low cost. The commitment to
maintain the lowest prices in the industry for good drinks is proof of the company’s distinctive
customer-centred approach.
11- Company innovation activities and strategies:
Arizona Beverage Company maintains a strong commitment to innovation, employing a

multifaceted approach to stay competitive in the dynamic beverage industry. They have
strategically diversified their product offerings to include healthier and novel beverages,
embraced sustainable packaging to reduce their environmental impact, continuously
experimented with new flavors, expanded into global markets, engaged with consumers through
digital platforms, optimized their supply chain for efficiency, invested in research and
development, and fostered collaborations with industry experts. These innovative strategies
reflect the company's adaptability and responsiveness to evolving consumer preferences,
positioning Arizona Beverage Company as a pioneer in the ever-changing beverage landscape.
12- Company Structure:
The Arizona Beverage Company, known for its popular iced tea products, typically
operates under a traditional organizational structure comprising executive leadership overseeing
various departments. Among the executive leaders are Don Vultaggio (Chairman & President)
and Abid Rizvi (CEO). The structure includes departments such as Sales and Marketing, Finance
and Accounting, Operations and Production, Supply Chain and Distribution, Research and
Development, Human Resources, Quality Control, Legal and Compliance, IT and Technology,
Customer Service, and Retail Relations, each tasked with specific functions to ensure the
production, promotion, and distribution of their beverages while adhering to legal and quality
standards.
13- Recent News and Major Issues related to the company
Recent news indicates that the Arizona Beverage Company is in defense of a class action
suit for advertising their so-called ‘natural’ brands. In the lawsuit, it is claimed that the company
misled customers by using adverting which boasted “100% all natural” ingredients when their
products comprised of unnatural constituents such as high fructose syrup and added colors. The
lead plaintiff, Thomas Iglesias, claims that he believed the company but later discovered that
there were addictions in it. Judge Jeffrey White of the U.S. District Court rejected the argument
that federal law makes certain class action suits expressly preempted; allowed some of the claims
to go forward (Hanson, 2023). The company will definitely face legal and social criticism,
especially after failing to observe legal requirements dictating accurate product labeling within
today’s consumer focused market.
14- Final Note:
This paper offers a concise yet informative analysis of Arizona Beverage Company. It covers
essential aspects of the company, including its unique pricing strategy in the face of inflation.
The inclusion of a recent news article adds relevance, and the paper adheres to the outlined
structure, providing a comprehensive overview.
15. References:
DeVon, C. (2022, October 13). AriZona Iced Tea CEO vows to keep the 99-cent price tag “for
as long as we can.” CNBC. https://www.cnbc.com/2022/10/13/arizona-iced-tea-ceo-
vows-to-keep-99-cent-price-tag.html
Forbes. (2023). Arizona Beverage | Company Overview & News. Forbes.
https://www.forbes.com/companies/arizona-beverage/?sh=40dc0c1e4574
Hanson, N. (2023, June 19). Arizona Beverages can’t dodge accusations of misleading market-
ing for “all natural” drinks. Courthouse News Service.
https://www.courthousenews.com/arizona-cant-dodge-accusations-of-misleading-
marketing-for-all-natural-drinks/

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Paper 1

1-Name of Company: Arizona Beverage Company

3- Why did you select this company?

4a- Company Size:

 Revenue: $3 billion in 2022.

4b- Company products and services:

5- Company Management Style

Arizona Beverage Company adopts a decentralized and collaborative management style

6- Company External Environment

Arizona Beverage Company’s culture is characterized by simplicity, authenticity, and an

8- Company Ethical policy and its social responsibility:

9- Company Planning Issues

10- Important decisions made recently by management

In a recent critical decision, the management of Arizona Beverage Company, led by

11- Company innovation activities and strategies:

Arizona Beverage Company maintains a strong commitment to innovation, employing a

12- Company Structure:

13- Recent News and Major Issues related to the company

14- Final Note:

as long as we can.” CNBC. https://www.cnbc.com/2022/10/13/arizona-iced-tea-ceo-

Forbes. (2023). Arizona Beverage | Company Overview & News. Forbes.

ing for “all natural” drinks. Courthouse News Service.

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