Arbitrator orders Starbucks to pay Kraft $2.7 billion
Starbucks terminated a distribution agreement prematurely in 2011.
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.