Arizona CEO Says Company 'Not for Sale.'
Rowboat vs Queen Mary.
'Baby on the Shelf.'

Don Vultaggio -- CEO of Arizona owner Ferolito-Vultaggio -- says Arizona's 2000 corporate volume up +9%.  Adds, "we'll double our business over the next five years, and we'll do it on our own."  BD/Maxwell data indicates Arizona's 1999 volume was 42 mil cases.  Asked about speculation Arizona might be for sale in wake of Snapple sale to Cadbury and SoBe to Pepsi, Vultaggio declares:  "We're not for sale.  I enjoy what I do.  As (Snapple co-founder) Lennie Marsh used to say, 'I'm in business, and I get excited about going to work in the morning.'"  Adds, "I have sons who might want to go into the business."

Growth. Vultaggio says about half of 2000 volume growth came from new Rx functional line. Notes, "the rest was across the board."  Adds, "green tea continues to grow."  Why growth slowed?  Asked about Arizona's slow growth in 1999, Vultaggio declares:  "It was SoBe.  SoBe was running around with my bottle."  [editor's note:  Arizona sued SoBe in 1997 in Federal court alleging, among other things, that SoBe engaged in copyright infringement re Arizona's bottle.  However, on Nov. 14 2000, court found for SoBe (BD 11/22/00); Arizona is appealing, says Vultaggio.]  Also claims SoBe was giving distributors "good terms to build the business."

Distribution. Vultaggio says about half of Arizona's distributors also carry SoBe.  Sees "opportunity" for Arizona in wake of Cadbury-Snapple and Pepsi-SoBe deals.  Notes, "SoBe going into the Pepsi system provides us with opportunity."  Emphasizes Arizona "does not plan distributor changes."  But notes as some independent distributors will lose SoBe, "there will be new focus on Arizona."  Competitors. Predicts with Pepsi owning SoBe and Cadbury owning Snapple, "(those brands) are not going to get as much attention or good marketing.  I'd rather compete with a big CSD company."  Emphasizes lack of concern about Coke/Pepsi/Cadbury going more into non-carbs, "except where they buy exclusivity." Ships and boats. Re competing with big CSD companies, "they're the Queen Mary, we're a nimble rowboat."

Distributor relations. Asked about word from some in industry that he is tough with distributors, Vultaggio says: "I operate from fairness, I operate the way I'd want to be dealt with.  I bring (distributors) a product that's profitable and a steady stream of innovation.  What else do distributors want from a supplier?"  Adds: "But I want my baby on the shelf. If I go into a market and don't see it, I have a right to be aggravated.  We're all in a struggle."

Arizona product.  Asked about suggestions by some that Arizona -- with strong package design -- is more about what's on the bottle than what's in it (BD 1/12/01), Vultaggio declares: "In taste and quality, we blow our competitors away.  Our product is constantly ahead of our competitors in taste tests."  Innovation. Vultaggio says Arizona plans "active innovation."  Company recently licensed "Kahlua" brand for non-alcoholic coffee drinks.  Plus?  Will Arizona go into bottled water?  "We're looking at it." Energy drinks?  "We're looking at it."  Green tea in PET?  "We're looking at it."