Peter Stuyvesant brought the first tea to America to the colonists in the Dutch settlement of New Amsterdam (later re-named New York by the English). Settlers here were confirmed tea drinkers and consumed more tea at that time then all of England put together. Tea was drunk by all levels of society. Tea trade was centered in Boston, New York, and Philadelphia, future centers of American rebellion.

America stabilized her government, strengthened her economy, and expanded her borders and interests. Trade exhibitors from around the world brought their products to America's first World's Fair. One such merchant was Richard Blechynden, a tea plantation owner. Originally, he had planned to give away free samples of hot tea to fair visitors. But when a heat wave hit, no one was interested. To save his investment of time and travel, he dumped a load of ice into the brewed tea and served the first "iced tea". It was the hit of the Fair.

Thomas Sullivan of New York developed the concept of "bagged tea". As a tea merchant, he carefully wrapped each sample delivered to restaurants for their consideration. He recognized a natural marketing opportunity when he realized the restaurants were brewing the samples "in the bags" to avoid the mess of tealeaves in the kitchens.