For getting into a dispute over coffee distribution with Kraft, an arbitrator has ruled that Starbucks must pay the former a whopping $2.76 billion if it wishes to settle the argument. Both the consumer products companies have been locked in a battle since 3 years after Starbucks fired Kraft as the distributor of its packaged coffee to grocery chains.
Mondelez will get the Prize
The arbitrator has concluded that of the total $2.76 billion to be paid by Starbucks, $2.23 billion will come under the head of damages and the rest $527 million will be used for covering the attorney fees.
The winner of the prize in the dispute between Starbucks and Kraft is Mondelez International Inc, a Deerfield, Illinois based company, which spun off Kraft in October 2012. Mondelez plans to use the money that would be left over after expenses and taxes to buy back stocks.