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Latest headlines

Arbitrator orders Starbucks to pay Kraft $2.7 billion

Starbucks terminated a distribution agreement prematurely in 2011.

By Shane O'Halloran
Kraft to receive $2.7 billion from Starbucks
November 13, 2013

Kraft Foods announces two new business units

A federal arbitrator has ordered Starbucks to pay $2.23 billion in damages plus $527 million in attorney's fees to Kraft spinoff Mondalez International, ending a dispute that begin in 2011 when the coffee chain terminated a distribution agreement with Kraft. Starbucks says Kraft mismanaged the brand and failed to live up to the agreement, while Kraft denied the charges. Starbucks packaged coffee sales netted Kraft annual revenues of around $500 million.

KEYWORDS: coffee

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