Dammann Frères, another French gourmet tea company, which sells about 800 tons a year, used to offer its teas only through businesses like delicatessens and luxury hotels. But last year, it started to market itself to retail customers, opening its first tea boutique in Paris. Since then, it has opened three boutiques in Japan and is considering a second in the French capital and one in London, said Pierre Merlanchon, marketing manager at Dammann Frères.

One of the most aggressive players is a new entrant to the market. TWG Tea, based in Singapore, has managed in two years to expand its annual sales to 650 tons from nothing while also securing shelf space at Dean & DeLuca and getting served in Singapore Airlines’ first-class cabins.

TWG Tea’s chairman, Manoj Murjani, said he decided to invest $10 million to found TWG Tea with four partners after an investment he made in a small tea company gave him a sixfold return within 18 months.

“We’re really going for the high end of the market, and we’re thinking big and we’re starting big,” he said. “From Year One to Year Two, we’ve grown in terms of revenues tenfold, and going forward, I think we will be growing at fivefold a year.” He declined to give specific sales figures.

TWG Tea has one boutique in Singapore and plans to open a second one there in October, then its first in Japan and one in the Middle East in the first quarter of 2010. There are also plans for a shop in New York next year and a counter to open soon at a Dean & DeLuca store in New York.

The company clearly has a strong eye for marketing, positioning itself as an innovator with seasonal creations and developing beautiful, elaborate packaging. TWG teas start at $4.20 for 50 grams, or 1.76 ounces.