Golf is all about traditions. While most of them revolve around the game, there are a few that are as refreshing as the quiet tradition that has become a significant part of the $20 million Arnold Palmer Invitational.

The Arnold Palmer is a refreshing non-alcoholic beverage. It blends iced tea and lemonade, and is named after the legendary golfer Arnold Palmer. That’s because he is the one who popularized it in the 1960s. However, it was not officially named at the time. But over the years, it has now become an iconic staple, especially at the Arnold Palmer Invitational.

It was the veteran golfer who used to make such a drink at home with his wife, Winnie or Winfred Palmer.

“My wife made a lot of iced tea for lunch, and I said, ‘Hey, babe, I’ve got an idea. You make the iced tea and make a big pitcher, and we’ll just put a little lemonade in it and see how that works.’ We mixed it up, and I got the solution about where I wanted it and I put the lemonade in it,” Palmer once said about inventing the drink in an ESPN 20 for 30 short.

The couple preferred three parts unsweetened iced tea to one part lemonade. But now, the 50/50 ratios have become more common.

The name caught on in the late 1960s. That was when the 62x PGA Tour winner ordered this drink at a Palm Springs restaurant. A woman sitting next to him overheard his order and requested “that Arnold Palmer drink.” Palmer even carried a thermos of it on courses. This cemented the drink’s golf heritage.

In 2001, he struck a deal to make the name official and market it as a commercial product. Today, it has become an officially licensed product sold by Innovative Flavors, Inc. and AriZona Beverage Company.

Arnold Palmer drink’s path to commercialization

The Arnold Palmer drink went from a personal golf-course favorite to a commercial powerhouse thanks to a business idea from Chris Byrd. He pitched Arnold Palmer on bottling the drink. The company is celebrating its 25th anniversary in 2026.

“Every bartender knew what an Arnold Palmer was, but he’d never made a penny off it,” Byrd said about the drink. “It was an idea whose time had come.”

After the pitch, he secured a license from Palmer Enterprises and partnered with Innovative Flavors, Inc. The company then collaborated with AriZona via Hornell Brewing’s affiliate to launch it in 2002. The drink had become popular since the 1960s. Yet, Arnold Palmer never made a penny of it until it became a proper product.

“This milestone isn’t just about shelf success,” Byrd said. “It’s about shared vision and trust. Arnold Palmer brought a name and a legacy; AriZona brought scale and creativity. Together, we built a brand that feels timeless, not trendy, and that’s rare in the beverage world.”

Early years saw modest uptake. In fact, the product was initially viewed as a niche for golfers until the late 2000s. Despite the initial challenges, AriZona’s Don Vultaggio persisted in continuing the business. Thanks to that trust by Vultaggio, sales exploded with consistent year-over-year gains. By 2013, U.S. sales hit nearly $200M annually. The huge sales also made it the #4 iced tea brand in the country.

Now, the company produces over 400 million cans annually. These are largely of the Half & Half ratio. They contribute to billions in total beverage sales. Cumulative estimates exceed $300 million for Palmer-branded products. One of its most iconic products is the 23-oz “Big Can” at $0.99. It has reached far beyond just golf fans.

Arnold Palmer has earned royalties through the licensing agreement. He allowed the company to use his name and even played a role in coming up with new flavors post-launch.

It began as a simple mix that Arnold Palmer enjoyed at home. However, it is now a widely recognized commercial success. The iconic beverage expanded far beyond golf courses and clubhouses. Even today, every glass served during the Arnold Palmer Invitational circles back to the quiet tradition that started it all.