After a 12-year partnership in the grocery aisles, Starbucks is telling Kraft to take a hike, E.J. Schultz and Maureen Merrison report.
"A month ago Starbucks informed Kraft
of its intention to end that distribution arrangement," it said in a statement. "The details and timing around any transition will be subject to further private dialogue."
Kraft CFO Timothy R. McLevish told analysts that the two companies together grew the business at a rate of 20% per year to the point where it's worth about $500 million in annual sales.
The company also made the point in a statement that if Starbucks decides to exit its relationship, "the agreement requires Starbucks to pay Kraft Foods the fair market value of the business plus,
in certain instances, a premium."
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