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Kraft Vies Against Former Partner Starbucks To Sell Gevalia In Supermarkets

The Wall Street Journal, Friday, April 15, 2011 9:02 AM

Kraft is giving Starbucks the heave-ho after a feud. Once partners, the two companies will now face off in the $4.1 billion U.S. packaged coffee market. Starting in August, Kraft will put its Gevalia coffee on supermarket shelves versus the Seattle company's retail offering, which Kraft used to distribute.

Kraft will sell Gevalia as a premium coffee in over 20,000 stores, which means the 160-year-old Swedish Gevalia brand will be widely available here for the first time. Kraft had distributed Starbucks until March when the deal was undone in a court battle, in which Starbucks may have to pay Kraft over $1 billion in termination fees. Starbucks now oversees its own retail distribution, and plans to promote its products both at supermarkets and its 11,000 U.S. cafes.

Read the whole story at The Wall Street Journal »

beverages, coffee, retail

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