AriZona Iced Tea Owner Partnership On The Rocks

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arizona iced tea 96258 e1312567845494 AriZona Iced Tea Owner Partnership On The RocksThe partnership that created AriZona Iced Tea – one of the most popular iced-tea brands in the U.S. with sales of $1 billion annually – is on the rocks, according to a Reuters news report that detailed the legal feud between the two men who started the company in 1992.

John Ferolito and Domenick Vultaggio began their beverage careers selling beer in Brooklyn out of the back of an old VW bus in the 1970s.  Then, some 20 years later, they introduced AriZona Iced Tea and distinguished the brand through packaging and pricing:  24 oz. cans for 99 cents.

Today, the company owns over one-third of the ready-to-drink tea market, outselling competitive brands from beverage giants like Coca-Cola, PepsiCo, Lipton, Nestea and Snapple.  But clashes over management style and financing have brought the two partners to a New York courtroom where a judge is set to decide how much context of their past relationship can be admitted as evidence in trial.

Since we don’t know all the facts of the case, we may be speculating here, but it’s safe to say that advance planning for incidences when partners disagree can go a long way toward staving off unwanted lawsuits.

When a company is started by two individuals and grows to such an extent as this one – and the partners have different ideas of where the company should head and how they should be compensated, or one partner wants to sell and another one doesn’t – pre-planning for just such an eventuality can be critical to a company’s survival.

Our Orange County business planning law firm has vast experience in structuring partnership agreements that take into account owners’ needs and desires, even if they differ.  Whether you need to structure a new partnership or update an existing one because of changes in company size or market, we can help.

Contact us today for individualized planning strategies to meet your unique needs.

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