Kraft weighs in on Starbucks contract

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NORTHFIELD, Ill., Nov. 29 (UPI) -- U.S. food giant Kraft said Monday Starbucks had decided on its own to end a 12-year distribution contract and that Kraft expected compensation.

"Starbucks unilaterally and unjustifiably declared in public statements the agreement's termination, needlessly risking confusion among customers about the agreement's status," said Mac Firestone, Kraft executive vice president for corporate and legal affairs and general counsel.

The Street reported Monday Starbuck's grocery sales have risen from $50 million per year to $500 million during the period in which Kraft took over distribution.

"In effect, Starbucks is trying to walk away from a 12-year strategic partnership, from which it has greatly benefited, without abiding by contractual conditions," Firestone said. "Kraft reasonably expected Starbucks to honor the contract."