Americans get a taste for tea

A BEVERAGE revolution is brewing in coffee country as America's ageing baby boomers are developing a taste for tea while young adults remain hooked on high-octane, espresso-based speciality coffees.

US consumers drink about $12bn (£8.45bn) of coffee and tea annually and despite a general economic recession, the market continues to grow by about 4% a year, according to MarketResearch.com.

Most of the expansion comes from two sources - continued demand for quality, premium-price coffees poured for the masses by Starbucks and the increasing popularity of tea.

Once-tepid tea consumption has been rising by about 8% a year during the past half decade in the US, according to the Food and Drug Administration. The beverage's popularity first spilled into consumer consciousness in the mid-1990s when tearooms opened in trendsetting cities in California. Now they can be found in middle America.

Baby Boomers who could not get enough of frothy-topped, high-caffeine espresso drinks in their youth are turning to high-quality premium teas as a lifestyle choice, say analysts. 'Recent news about the health benefits of some teas, combined with an explosion in the variety of flavours and choices, is attracting baby boomers who are more interested in a relaxing tea break than getting charged-up on coffee,' said MarketResearch's Alison Williams.

Among mass-market coffee retailers, only Starbucks continues to generate strong sales in the domestic US market while opening new stores around the globe to keep momentum going. Starbucks plans to introduce its trademark brew in more than 600 new European outlets by the end of 2003. In contrast to weak coffee sales in outlets in Britain, Starbucks' same-store sales rose 7% in January, prompting one Wall Street analyst to raise his recommendation on the Seattle-based company that has expanded its products to include CDs and breakfast buns.

One reason for the success is that it was smart enough to smell the tea craze and snap up Tazo Tea Company, whose products are now incorporated into the Starbucks line-up.

The new infatuation with tea has one element that will make the average Briton cringe. Most people in the US prefer their tea cold, served over ice and usually with massive sweetener.

Still, die-hard coffee drinkers have not disappeared. America may be the only country to serve up online communities for coffee purists. One of them, CoffeeGeek.com, links information and websites for the latest news on beans, grinders, home roasters and brewing techniques for true fans.