Amazon’s herbal tea business is being targeted by competition from the e-commerce giant, the Wall Street Journal reported on Friday.
The newspaper quoted Amazon chief financial officer Andrew Liveris as saying that the company was facing “significant” competition from Chinese e-tailers that sell herbal tea.
Liveris said Amazon’s tea business was “probably the best” it had ever made, but he didn’t specify which Chinese companies were interested.
The Wall Street Report says that Amazon’s $6.5 billion sale of HerbalTea to Alibaba, China’s second-largest online shopping platform, has created a new market for Chinese companies, which are looking to cash in on the Amazon Tea phenomenon.
Last week, the Washington Post reported that the Chinese government’s Alibaba-owned Alibaba Group also has a stake in the herbal tea market, though that company has not yet publicly disclosed its interest.
The report said the Chinese ecommerce giant is eyeing the herbal teas market to become the dominant player in the sector.