Starbucks to pay $2.76 billion in coffee spat with Kraft
ASSOCIATED PRESS November 12, 2013 5:00PM
FILE - In this Wednesday, Oct. 23, 2013, file photo, cups of Starbucks coffee drinks sit on a counter at a Starbucks store, in Seattle. An arbitrator concluded on Tuesday, Nov. 12, 2013, that Starbucks must pay $2.76 billion to settle a dispute with Kraft over coffee distribution. (AP Photo/Ted S. Warren, File)
Updated: November 13, 2013 7:09AM
NEW YORK — 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.