Sweetened, flavored, unsweetened, unflavored ... the domestic teascape is evolving. Iced tea remains the preferred all- American tea drink, but other products like ready-to-drink beverages are gaining big market share. Starbucks’ profits are up because of tea sales. And worldwide, tea is the second drink after water.

These trends and other revelations emerged from the third annual World Tea Expo (www.worldteaexpo.com) held in Las Vegas last March. The Expo’s headline event, the Third Annual Iced Tea Shake-Off, judged by a panel including chef Rick Moonen and Jeffrey Hattrick, afternoon tea Maitre d’ at the Ritz-Carlton, Phoenix, came off with its usual theatrics and blends. One development on this circuit: green teas are getting iced, though black teas still dominate the cubes.

According to show organizer and founder George Jage, American drink tastes are changing and tea is a lucrative profit center that should be cultivated by almost any food and beverage outlet.

“The costs for serving a really good tea aren’t much more than they are for serving a bad tea,” says Jage. “People need to look at the opportunity to serve a superior tea product because people are willing to pay a premium price for a premium product. Serving premium tea might cost a nickel per cup, but you can sell it for a dollar or more. Good marketing will produce a superior product. The sell is in the experience. Why else would people pay up to five dollars for a coffee house product?”

Some of those experiences are happening in a growing number of tea rooms across the country—and they aren’t all festooned with Victorian lace and roses. “The Victorian theme is certainly popular,” says Jage, “but some have a more modern look, like teany cafe in New York’s Lower East Side.” Food retailers, spas, hotels, tea rooms, restaurants, grocers, and coffee houses are embracing the trend to tea.

One catalyst to the growth: pyramid shaped nylon mesh tea bags that accommodate the American love of convenience and speed. The bags are large enough to hold whole leaf tea. Unlike the familiar flat paper bag filled with chopped up tea at the end of a string, the pyramid shape allows for more traditional preparation. It balances the convenience of a tea bag with the purist’s preference for brewing whole leaves.

In a plethora of forms, more American consumers are taking tea from grocers’ shelves and varied F&B outlets than ever. Today’s most successful stateside purveyors include Connecticut-based Harney & Sons Fine Teas and Georgia-based Teavana.

Attendance at this year’s World Tea Expo was 4,122—a record attendance. Companies displayed products to buyers large and small. Among the takers were Whole Food Markets, Nestle Beverage, the Kroger Company, Cadbury Schweppes Beverages, Bath & Body Works, Trader Joe’s, Wegman’s, United Natural Foods, H.E.B., Jamba Juice, and Hyatt Hotels.

Entertaining and educational attendee sessions included Japanese and Chinese tea ceremonies, Chado Chef cooking with tea demonstrations by top chefs such as Rick Moonen and Kerry Simon, and a keynote address by Peter van Stolk, founder, CEO, and president of Jones Soda Co.

The program helped takers bone up on the complexities and artistic natures of tea, which are similar to wine and contributed to consumer enjoyment, says Jage. Because selection can be intimidating to those who don’t know how to choose, the expo aims to help people serve tea better and cost effectively. Other sources include consultants in the marketplace who provide guidance about buying, marketing, and service.

The expo also hosted the first U.S. Tea Auction. Tea shop owners and tea connoisseurs purchased five and ten kilogram lots of premium teas from the Nilgiri region of India. There were 42 teas from 14 Nilgiri estates auctioned. A tasting event was held the evening before the auction, giving buyers a chance to see, smell, and taste the leaves.

Jennifer Cauble, a Fort Worth, Texas, resident who hosts tea tastings, won the spirited bidding on Glendale Super Fine Tip Golden Flowery Orange Pekoe leaves, and became the first tea auction buyer in the U.S. She paid $600 per kilogram, which may be the highest price ever paid for black tea at auction.

Is tea overtaking coffee as the national drink? The jury is still out, says Jage, but tea is the second healthiest beverage next to water, he says, and it has lots of antioxidants that can benefit any diet.

Ruth A. Hill is a frequent contributor to HOTEL F&B EXECUTIVE