QUICK LINKS: Micromarkets  |

VT Classifieds

|

Buy a Classified Ad

|

Editorial Calendars

|

Circulation Data

|

Downloads

|

Bookstore

|

Operators Date Book

Search:  Follow VendingTimes on Twitter 

Bookmark this site



 
Issue Date: Vol. 53, No. 12, December 2013, Posted On: 11/19/2013


Starbucks To Pay Kraft $2.7 Billion For Early Contract Termination


Emily Jed
Emily@vendingtimes.net
TAGS: Starbucks pays Kraft Foods Group, Starbucks $2.7 billion settlement, Starbucks-Kraft contract dispute, Mondelez International, coffee news

NORTHFIELD, IL -- An arbitrator ruled that Starbucks must pay Kraft Foods Group more than $2.7 billion for its early termination of the packaged coffee contract between the two companies.

In March 2011, Starbucks announced that it was ending a long-term contract inked in 1998 with Kraft that allowed Kraft to sell bagged Starbucks coffee in grocery stores. | SEE STORY

Starbucks claimed Kraft mismanaged the brand and had breached the contract. Kraft denied the Seattle coffee giant's charges and demanded that Starbucks pay it a fair value for the business, which reportedly brought in annual revenues of about $500 million for Kraft.

The restitution includes $2.23 billion in damages plus $527 million in prejudgment interest and attorney's fees. The award will go to Mondelez International, which spun off Kraft Foods in 2012.


Topic: Coffee Service News

Articles:
  • Kraft Introduces GFI S'mores Marshmallow-Flavor Cappuccino Mix
  • Marley Coffee Expands RealCup Lineup
  • Maxwell House Special Delivery Filter Pouch Provides No-Mess Ease
  • Coffee Bean & Tea Leaf Brings Brand To K-Cups
  • Numi Organic Teas Come To RealCup Capsules

Copyright © 2014 Vending Times Inc. All rights reserved. 
P: (516) 442-1850 | F: (516) 442-1849 | subscriptions@vendingtimes.net
55 Maple Ave. - Ste. 304, Rockville Centre, NY 11570