Starbucks Ordered to Pay $2.7 Billion in Dispute with Kraft
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Starbucks has lost big in its dispute with Kraft over how its packaged coffee was marketed in grocery stores.
An independent arbitrator ruled Tuesday that the coffee giant must pay $2.7 billion in cash for “improper termination” of a distribution deal that ended two years ago amid finger pointing by the two corporate giants, according to a statement from Mondelez International. Mondelez was formed when Kraft Foods split into two companies in October 2012 and will get the cash award as a result of its separation agreement from Kraft Foods Group.
“We’re pleased that the arbitrator validated our position that Starbucks breached our successful and long-standing contractual relationship without proper compensation,” Gerd Pleuhs, exec VP for legal affairs and general counsel of Mondelez International, said in the statement.
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