By Lindsey Goodwin

Conventional wisdom says that most Americans still consider tea to be a cold-weather beverage, unless they’re in the Southeast and drink tea sweet enough to stand a spoon in. The success of tea businesses based in the scorching-hot Phoenix metroplex seems like an anomaly, but their owners say it’s an indicator for what’s to come for the industry at large.

A taste of Phoenix tea history

Ironically, the most recognizable “Arizona” tea brand, Arizona Iced Tea, was started in New York eight years after iced tea was popularized in Phoenix.

In 1982, Phoenix shut down for the summer, just as it always did. Snowbirds went north, and some businesses, including two coffee shops owned by Dan Schweiker and John Martinson, went under. They thought Phoenix was too hot for hot coffee and decided to start an iced tea business. According to China Mist’s marketing manager, Kiley Biggins, this was the inception of China Mist, which now serves about 27.8 million gallons of iced tea and 295,821 gallons of hot tea around the world on a daily basis.

Few of China Mist’s teas are sweetened, and unsweetened iced tea remains popular in Phoenix today.

In 1998, Revolution Tea warmed Phoenicians up to the idea of hot tea. Vice President and Creative Director Jeff Irish said Revolution has grown an average of 10 percent a year since then and, although it’s international now, the company still takes pride in a strong local retail and food-service presence.

Later, a range of tea rooms started up and stuck around:

• Souvia Tea, a European-style teashop that opened in 2005 and recently expanded to a second location
• Urban Tea Loft, an award-winning restaurant and tea house that opened in 2007
• TeaGschwendner, a March 2009 newcomer and franchise location of the German powerhouse
• White August Tea, a charming sit-down tea shop with a drive-through that opened this February

Despite a flailing economy and Phoenix’s summer sales slump, sources say their businesses are holding strong.

Cold tea in hot weather

Not surprisingly, most sources said iced tea dominates their summer sales. TeaGschwendner franchise co-owner Cheryl Graff estimated 75 percent of her to-go sales are iced, and that percentage is rising with the temperature. To encourage iced tea sales, she offers classes, demos and one-on-one instruction for making and tasting iced tea.

However, the local preference for iced tea in summer is not a given. Tamara Graham, owner of White August, said she sells more hot tea than iced at her drive-through window each morning, and that the preference shifts to iced tea in the afternoon.

Brett Wingert, owner of Souvia Tea, said he sells more hot tea in the summer than he does iced in the winter. People buy hot coffee in 110º F weather, he added, so there’s no reason to shun hot tea.

China Mist and Revolution recently ventured into the Middle Eastern market, where the climate is similar to that of Phoenix, but hot tea is the preferred beverage. In stark contrast to the industry’s challenges in Phoenix, Biggins said, China Mist is trying to overcome negative preconceptions about iced tea there.

Non-local culture cultivates innovation

After China Mist opened, founders learned that snowbird culture encouraged innovation. Biggins said, “When people went to resorts, they wanted something different.” Today, there are plenty of year-round Phoenix residents, but according to Irish, “No one is really from Phoenix,” and a broad mix of residents still encourages new approaches.

During the stultifying summer months, innovation is particularly important for boosting sales, said Glynis Legrand, CEO of Urban Tea Loft. She believes creativity is essential both because everyone’s business dips in summer and because tea isn’t immediately associated with hot weather. Beyond iced tea, here’s what sources said is working in Phoenix now:

• A focus on health, including organics, natural flavors, general benefits and overall lifestyle
• Cooling Ayurvedic or Chinese medicinal blends
• European-style teashops
• Frozen tea treats, like slushes, smoothies, ice creams and gelatos
• Locations in artsy areas, or former coffee shops
• Modern, gender-neutral aesthetics
• Pairing tea with desserts and meals
• Partnerships with herbalists, caterers and other tea-related professionals
• Tea body products, like soaps and lotions
• Tea for rubs, marinades, smoking and other outdoorsy recipes
• Tea cocktails, mocktails and sodas
• Tropical and desert flavors, like passion fruit and prickly pear

Irish added that many national chains use Phoenix to test new concepts because, “If it works here, it will work anywhere.” The success of a tea business in Phoenix, he said, is a “solid indicator” for the national tea market.