Kraft Kerfuffle Costs Starbucks $2.7B

Settlement ends packaged-coffee battle

By Newser Editors and Wire Services

Posted Nov 13, 2013 1:34 AM CST

(Newser) – Starbucks has to cough up an eye-popping $2.76 billion to settle a dispute with Kraft over coffee distribution, an arbitrator has decided. The two companies had been locked in a fight for three years after Starbucks fired Kraft as its distributor of packaged coffee to grocery chains, complaining that it had violated its contract by failing to work closely with the company on marketing decisions and customer contacts.

The award—$2.23 billion in damages and $527 million in attorney fees—will go to Mondelez International, the snack side of the business Kraft spun off last year. Starbucks says that while it disagrees with the conclusion, it is glad the legal battle is over and it still believes taking back its packaged coffee business was the right thing to do.

$2.76 billion adds up to a lot of lattes.
$2.76 billion adds up to a lot of lattes.   (AP Photo/Ted S. Warren, File)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
15%
12%
3%
16%
4%
51%
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!