The two were duking it out under an arbitrator, who decided yesterday that Starbucks will fork over $2.23 billion in damages plus another $527 million in prejudgment interest and attorneys fees after Starbucks slunk out of a deal early. Mondelez International will get the money as it spun off from Kraft in 2012, reports USA Today.
Things went sour in March 2011 when Starbucks skipped out on a contract it had with Kraft since 1998 that allowed the food company to sell its bagged beans in grocery stores.
Both sides blamed each other, of course: Starbucks said Kraft mismanaged the brand, causing breach of contract. But Kraft said that wasn’t so and told Starbucks it had to pay up as it was going to lose $500 million per year without that deal.
“We strongly disagree with the arbitrator’s conclusion,” said Troy Alstead, Starbucks chief financial officer, in a statement. “We believe Kraft did not deliver on its responsibilities to our brand under the agreement.”
Dispute with Kraft costs Starbucks $2.7 billion [USA Today]