Tech Gets In On Tea Trend

Tea has been named as the most widely consumed beverage in the world after water, despite the fact that coffee remains the drink of choice among most Americans.

However, it appears that the American attitude toward tea is changing, as data showed that tea sales in the United States increased from just $2 billion in 1990 to more than $10 billion in 2014. Much of that increase can be attributed to changing consumer preferences and a push for healthier foods and drinks across the country.

As tea is considered to be a healthier choice than coffee, many Americans have begun drinking tea, and the beverage can be found in nearly 80 percent of U.S. households.

Moving Into The Tea Space

The increase in tea consumption has pushed many big name beverage makers like PepsiCo, Inc. (NYSE: PEP), The Coca-Cola Co (NYSE: KO) and Dr Pepper Snapple Group Inc. (NYSE: DPS) to expand their tea offerings.

Brands like Starbucks Corporation (NASDAQ: SBUX), which are famous for coffee, have also been rolling out tea lines in order to attract customers who are cutting down on caffeine.

Related Link: 3 Reasons Goldman Is Buying Starbucks Stock

Tea Tech

As tea has become a more popular option in many households, instant drink machine manufacturers are working to beef up their tea offerings. Single serve beverage machine makers like Keurig Green Mountain Inc (NASDAQ: GMCR) have added several varieties of both hot and cold tea options to their repertoire. However, instant tea machines may be a thing of the past, as a new tea robot made by a small tech firm could up the ante on the perfect pot.

Teforia

Teforia has created an "intelligent infuser," which the company claims will brew the perfect cup of tea in just five minutes. The machine flushes leaves in and out repeatedly and eventually empties the liquid into a carafe for consumption. The process differs immensely from any other machine on the market, but so does the price tag. A Teforia machine is priced at $1,300, a far cry from competitors like Teavana Holdings, Inc. (NYSE: TEA) $40 infuser.

Will They Pay?

While the idea of paying $1,300 may seem steep, Teforia CEO Allen Han says the machine's superiority can't be matched. Everything from the temperature to caffeine levels can be controlled using the machine, allowing users to create their own perfect blend of tea for any occasion.

The machine could fit in with the growing popularity of "special batch" offerings in the United States. Everything from craft beer to specialty coffee has risen in popularity, as more people seek out an experience rather than just a beverage.

Teforia's tea machine sticks to ancient rituals in which the movement of the water and the changing of color is a huge part of the experience. The machine isn't meant for an average household, but instead is targeted at specialty tea shops that want to offer customers a tasting experience or those tea drinkers with refined palates who would find value in creating their own blends.

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