Starbucks is attempting to end the deal that provides Kraft with the exclusive rights for the sales, marketing and distribution of Starbucks roast and ground [image-nocss] coffee in grocery and other retail outlets, Kraft said.
(Click here for previous CSP Daily News coverage.)
That arbitration process will continue over the next several months and is not affected by the court decision.
Kraft intends to appeal the decision to the U.S. Court of Appeals for the Second Circuit on an expedited basis.
After the ruling, Marc Firestone, executive vice president of corporate and legal affairs and general counsel, said, "We're disappointed the judge decided not to grant a preliminary injunction. While we've always acknowledged that there are certain legal hurdles for obtaining a preliminary injunction, we avidly believe this case justifies an injunction and will argue that point vigorously on appeal. Importantly, however, [the] decision is not a ruling on the core question of whether Starbucks can terminate our contract without compensating us as the contract requires. That question will be decided in arbitration."
He added, "Without proof of material breach, Starbucks only legitimate termination mechanism is to pay Kraft fair market value for the business, plus a premium. We believe more strongly than ever that such a payment is the appropriate outcome in this dispute."
Seattle-based Starbucks Corp. is a leading roaster and retailer of specialty coffees. In addition to its Starbucks retail stores, the company produces a variety of branded consumer products globally, including ready-to-drink beverages, packaged coffees and premium ice creams. The company's brand portfolio features Starbucks Coffee, Tazo Tea, Seattle's Best Coffee and Torrefazione Italia Coffee.
Northfield, Ill.-based Kraft Foods' portfolio includes brands such as Oreo, Nabisco and LU biscuits; Milka and Cadbury chocolates; Trident gum; Jacobs and Maxwell House coffees; Philadelphia cream cheeses; Kraft cheeses, dinners and dressings; and Oscar Mayer meats.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.