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Transcript of Arizona Beverages
The History of AriZona Beverages
In May 1999, Pepsi launched it's 100 Meters Program. The goal was for any person to be able to purchase a Pepsi drink 100 meters in any direction in an urban area. After it's success, other corporations have adopted it, including AriZona. Now we can only imagine how much fuel it takes to ship to nearly every store around the corner.
The main AriZona Iced Tea factory is in Maplewood, New Jersey. AriZona supplies nearly every grocery store in USA. That's almost every refrigerator in just the States. Just think how much fuel they consume to guarantee that their product is available at every store in the U.S.
On an average, 1 liter of diesel burns off 2.68 kg of carbon dioxide. So if we use the Netflix figure, 542,635,659 L, AriZona produces over 1,454,263,566 kg of carbon dioxide. This may seem like a large number, but it is only 2.68% of what USA produced in 2009, 5424 million tonnes.
Transportation Part 1
Today's History Lesson
In 2011, AriZona made nearly $1 billion in sales. From a direct email, AriZona makes exactly 22 cans from a pound of aluminum, the metal their cans are produced from. This figure is for their 750 mL cans, their most commonly used can.
So let's say they made and sold 1 billion cans. It would take around 45,454,545.45 pounds of aluminum to produce that many cans.
How 'bout it? We'll call it AriZona. Capital Z.
AriZona's roots trace back to an alcoholic distribution business started by friends John Ferolito and Don Vultaggio. They were compelled to start their own beverage company when they witnessed the success of Snapple, a famous brand of iced tea and juices.
AriZona's marketing strategy has proved successful with today's demand for natural and organic products. AriZona has done this since the mishap concerning DDT, a harmful insecticide which is responsible for decimating the bald eagle population. AriZona's marketing strategies have paid off, as it now dominates the "ready to drink" tea market, by a staggering 28.6%; the closest competition is Lipton Iced Tea at approximately 25%.
Fuel consumption is measured in pounds of fuel per horsepower per hour.100,000 horsepower is the average for a ship.This then works out to 25,000 pounds of marine diesel fuel per hour. Marine diesel is about 7 lbs/gallon, which is around 3600 gallons burned per hour. The average speed a freight ship cruises at is approx. 30 nautical miles per hour. This means that for this ship to travel 30 miles (n), it needs to consume 3600 gallons of fuel. That's 120 gallons per mile. There 5280 feet in a mile, so that's 1 gallon every 44 feet.
Transportation: Part 2
Obviously freight ships don't burn quality gas, what they actually burn, "bunker fuel", is barely a step above asphalt. It is so thick it must be heated to unbelievable temperatures (over 500 degrees C) just to flow through the engines. It was very cheap, a couple pennies per gallon. It is usually vented underneath the ship so we don't see the pollution.
But these days, it is no longer pennies, but about $1.66/gallon. A 7000 TEU (20 ft. equivalent) container ship will burn through 217 tons/day, which is around $99,700 per day in expenses. That's above the average household income in Canada.
On average, Netflix spends $700 million annually on shipping DVDs. We are unsure of exact figures, but we can definitely conclude that AriZona spend much more on shipping. If we divide $700 million buy the gas price of 3/6/13, or $1.29 we get 542,635,659 L (approx.) of gas consumed per year at the given rate. Obviously AriZona spends more so the consumption is even higher.
Total Energy Costs
From the numbers listed, we can conclude that AriZona spends 45,454,545.45 pounds of aluminum on their cans (if they were all their famous 750 mL ones), 1 gallon of bunker fuel per feet every time they ship something overseas, $99,000 per day on shipping (7000 TEU), over 542,635,659 L of fuel annually (transporting their product to customers, more than 1,454,263,566 kg of carbon dioxide.
Sounds like a lot? Maybe not if compared to this: if every drop of Coke produced was put into their 8 oz. bottles, it would reach the Moon and back over 2000 times, Coke consumes over 300,000 pounds of aluminum just for the US alone and though AriZona produces over a billion aluminum cans, Starbucks produces over 2.3 billion paper cups, double the AriZona number and that's just for the US.
Frankly, if we tally up all the consumption rates on every single thing such as cans, ingredients, we would reach a number so high it is more than our global production of literally everything. In conclusion we are consuming more than we can produce.