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Tue November 12, 2013
Starbucks to Pay $2.76B in Coffee Spat with Kraft
An arbitrator has concluded that Starbucks must pay $2.76 billion to settle a dispute with Kraft over coffee distribution.
The two consumer products companies had been locked in a fight after Starbucks Corp. fired Kraft as its distributor of packaged coffee to grocery chains in 2010.
The arbitrator determined that Starbucks must pay $2.23 billion in damages and $527 million in attorney fees, Starbucks and Mondelez said Tuesday.
Seattle-based Starbucks said in a statement Tuesday that while it is pleased that the arbitration has ended, it disagrees with the conclusion.
Kraft will send the money to Deerfield, Ill.-based Mondelez International Inc., which spun off Kraft Foods Group in October 2012.