FINANCIAL TIMES: Starbucks has been ordered to pay $2.7bn in compensation to Kraft Foods – a charge equal to the coffee chain’s entire net income since the start of 2012 – for terminating a deal to let the food group distribute its coffee.
An arbitrator ruled that Starbucks had to pay $2.23bn in damages plus $527m in other fees following a dispute that began in 2010 when Starbucks vowed to pull out of the deal under which Kraft sold its packaged coffee to supermarkets…
For the year to September, Starbucks had reported net income of $1.7bn. In the nine months to September 2012, its net income was $1bn. Starbucks shares fell 1.45 per cent to $79.45 in after-market trading after news of the ruling emerged… (more)
