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Starbucks Loses Arbitration Dispute

The coffee giant has been ordered to pay billions in damages and fees.
NEW YORK, NEW YORK – An arbitrator ruled Tuesday that Starbucks must pay $2.76 billion to Kraft in damages after the Seattle-based company backed out of a distribution agreement.

The companies signed a 10-year contract in 2004 giving Kraft exclusive rights to sell packaged Starbucks coffee to retailers. Starbucks backed out of the deal in 2010.

Mondelez International will receive the payment since they owned Kraft when the contract was in place.

Mondelez said it was “glad to put this issue behind us.” Starbucks said it was “pleased” with the decision, but also said it disagreed with the arbitrator’s decision.
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