Beverages

Tea Time in the USA

Sales hit $6.2 billion in 2005

NEW YORK -- Tea drinking is on a roll in the United States. According to a report in The Wall Street Journal, there are about 2,000 tea houses nationwide, up from 200 a decade ago. And tea sales reached $6.2 billion last year, more than quadruple their level in the early 1990s, according to the Tea Association of the USA. One big reason: Recent research has shown that tea, particularly green tea, is loaded with antioxidants that supposedly can help ward off ailments such as heart disease and cancer.

For years, tea was a time-consuming affair in [image-nocss] the United States. Enjoying the drink meant buying a box of tea bags, heating water and allowing the tea bag to sit in a cup for a few minutes. Tea rooms were upscale places that sold fancy cookies and cucumber sandwiches.

In 1987, beverage company Snapple introduced an iced-tea line, making tea as convenient as bottled juice and soda. Americans' desire for ready-to-drink tea intensified through the 1990s and into the 21st century.

It took Snapple coming into the business to add some pizzazz and upgrade the product, Joseph Simrany, president of the Tea Association, a trade group based in New York, told the WSJ.

Tea sales kept growing as studies attributed health benefits to imbibing the brew. In May, scientists at Yale's medical school said green tea might explain why Asians have lower rates of heart disease and lung cancer than Americans, even though they smoke more. Calling the phenomenon the Asian Paradox, the scientists wrote in the Journal of the American College of Surgeons that antioxidants in green tea could stymie disease-causing cells, WSJ said.

Meanwhile, tea houses are cropping up across the country, and at least two business models have emerged among entrepreneurs trying to grab a piece of the emerging tea market. Some appeal to a more high-end clientele. Others push the mass appeal cafe.

TeaGschwendner USA Inc., a German company that first opened in the U.S. in Chicago, targets upscale customers with rare teas and accessories. The store sells stylish tea pots, filter equipment, even candles. A distinctive Russian teapot goes for more than $1,000. And while the store sells basic teas, it also offers exotic blends, such as a scarce green tea called Japanese Shincha that costs about $350 a pound. Home brewing is the store's focus, but the American version has added bistros with full lunch and dinner menus to draw in customers.

Meanwhile, Tempest Tea, a local loose-leaf tea cafe in Dallas, focuses on mass appeal. Founders Brian and Jody Rudman said the object is to present our teas much in the way Starbucks would present coffee. The couple wanted to take out the stuffiness associated with English tea drinking and make it more compatible with the busy American lifestyle. Patrons can get tea brewed on demand from a person behind a counter; the shop offers salads, sandwiches and wraps. The store offers 75 varieties of hot and cold brews, including 16 bubble teas, a milkshake-like, fruit-flavored drink that appeals to teens and 20-somethings.

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