Starbucks Wants Quick Split from Kraft
January 17/Seattle/Global English -- Starbucks filed for an early termination for its agreement with Kraft foods by which the latter distributes the coffee-shop operator's products in a deal worth $500 million every year, reported Times of Oman.
The attorney of world's second-largest food company said that by early termination, Kraft faces irreparable harm in terms of revenue. Starbucks' attorney said that due to poor performance at Kraft's side and breach of contract, Starbucks lost $100 million in potential sales. The attorney described Kraft's performance as a distributor as unacceptably poor and that they fall below the standard of commercially reasonable efforts. It is worth noting that sales of Starbucks products went up in the first couple of years of the agreement that started back in1998;however, growth rate began to fall shortly afterward.
From the January 18, 2011, Prepared Foods' Daily News
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