Starbucks to Pay $2.7B in Kraft Dispute

(CNN) — A years-long contract fight with Kraft will end up costing Starbucks big money.

An arbitrator ruled Tuesday the coffee giant will have to pay out $2.7 billion in damages and fees.

The dispute stems from a contract Starbucks backed out of in 2010. The 10-year contract was signed in 2004 and gave Kraft exclusive rights to sell packaged Starbucks coffee to retailers.

Mondelez International owned Kraft when the contract was in place, so it will receive the payment. The company said it was “glad to put this issue behind us.”

Starbucks said it was “pleased” the dispute was over, but said it disagreed with the arbitrator’s decision.

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  1. ron says:

    All drinks going up now

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