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New York (CNN Business) --
When Don Vultaggio was considering names for his new iced tea business three decades ago, he wanted something that connoted a "warm, healthy environment."
That meant moving away from Brooklyn, where Vultaggio grew up.
But not far away: his friends called his house in New York the Santa Fe house, because of its adobe-style design, full of pink, yellow and turquoise colors.
So he decided on "Santa Fe" as the name of the drink.
It didn't last long.
"When I put Santa Fe in the package, it didn't look right," Vultaggio told CNN Business.
"I thought it looked like a train."
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Thinking of places near Santa Fe that would look better on a can, Vultaggio settled on Arizona, where he had never been.
In fact, Vultaggio had never even traveled west of the Mississippi.
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"I've always associated Arizona with a healthy, clean, dry feel that was different from the feel of Brooklyn," he said.
“Having a name associated with a lifestyle, which is an environment and climate that makes you want to have a refreshing iced tea.
That's why the name seemed to make sense to me."
AriZona Beverages, which makes its famous 99-cent iced teas, started in New York City in the early 1990s. Vultaggio, the company's co-founder, said he was inspired by Snapple, which was founded in 1972 and became a cultural phenomenon.
The "Snapple Lady" commercials made the juice and iced tea company a huge success as sales skyrocketed throughout the '90s.
Having had their own success with a malt liquor business, Vultaggio and his partners pivoted to selling iced tea in 23-ounce cans the same size as their malt liquor.
That helped AriZona stand out against Snapple's 16-ounce can.
They wanted to keep it at the same price, too.
And give the logo a stylized capital Z, which he said looks best on his cans.
The vibrant can, with its bold patterns and colors, was inspired by her Santa Fe home, due to the “ongoing feedback and praise we would receive from everyone” for her home design.
Arizona was almost called Santa Fe.
AriZona's design is a "huge point of differentiation from its competitors," according to Andres Nicholls, global executive creative director at design and consulting firm Prophet.
“It's been a great tool and place to express your personality and quickly tell the market 'we're not like everyone else.'”
Nicholls said the brand "has been quite fearless and consistent in its approach and has come up with a very distinctive design."
AriZona Iced Tea made its debut in 1992 and became an instant hit.
Their product line has grown beyond tea and now encompasses hundreds of products including snacks, candy, coffee, and alcohol.
One of their most popular drinks is Arnold Palmer, a half-tea, half-lemonade drink based on the golfer's drink of choice.
But just as eye-catching as the design is the 99-cent price for its tall iced teas, which must be adjusted to more than $2 according to the US Bureau of Labor Statistics' price calculator. But that 1992 price remains. .
"Our customers don't need another price increase," he told CNN International host Richard Quest in June.
"We hold that price to give customers a reason to buy from us."
Manufacturing costs have risen everywhere, but Vultaggio credits behind-the-scenes action keeping tea profit margins strong.
“We've been able to do that by making the can lighter, creating the cans faster on the line, having more facilities in the US to get closer to the market,” he explained.
The eye-catching design also helps maintain its market dominance, because AriZona doesn't advertise as much as Snapple.
Rather, the brand relies on its creativity to capture the attention of customers.
"We use packaging and a story of value, then a great product inside," Vultaggio said.
“The first time a person buys from us is because of the packaging.
And forever, they buy it because he tastes great.”
