Starbucks denies Kraft did well in coffee sales

BANGALORE, Dec 29 (BestGrowthStock) – Starbucks Corp (SBUX.O: ) denied
Kraft Foods Inc’s (KFT.N: ) claim that the packaged food maker
performed “exceptionally well” under an agreement to sell
Starbucks’ packaged coffee, court documents showed.

Starbucks said late last month that it wanted to end its
relationship with Kraft as the world’s largest coffee shop chain
seeks to boost sales outside its own stores through having a
greater role in the distribution of its packaged goods.

The business generates $500 million in annual sales for
Kraft and has high profit margins. Kraft pays Starbucks a
royalty fee based in part on the performance of the business.

Following Starbucks’ decision to end the agreement, Kraft
escalated the battle by asking a federal court to stop the
coffee chain from trying to sell its packaged coffee through a
different distributor. [ID:nN23141812]

However, Starbucks said it denies that Kraft’s distribution
of its products is performing extremely well, court documents
showed.

“Starbucks denies that it has repeatedly praised Kraft for
the quality and effectiveness of its performance under the
agreement,” the company said in its response to Kraft’s filing.

The Seattle coffee company also asked the court to deny
Kraft’s request to prevent Starbucks from trying to sell its
packaged coffee through a different distributor.

The case is in re: Kraft Foods Global Inc v. Starbucks Corp,
Case No. 10-09085, U.S. District Court for the Southern District
of New York.
(Reporting by Sakthi Prasad in Bangalore; Editing by Louise
Heavens)

Starbucks denies Kraft did well in coffee sales