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Starbucks(SBUX - Get Report)52-Week High Reached Tuesday: $33.09
Starbucks is in the middle of a developing dispute with
Kraft Foods(KFT) surrounding Starbucks' termination of the pair's 12-year distribution agreement.
Kraft said Monday it is seeking a preliminary injunction against Starbucks for breaking the agreement
Kraft said "Starbucks is attempting to unilaterally end the strategic partnership that provides Kraft with the exclusive rights for the sales, marketing and distribution of Starbucks roast and ground coffee in grocery and other retail outlets." In seeking an injunction, Kraft wants Starbucks to stop moving ahead with business operations as if the agreement had already been terminated. Kraft argued "the contract is still in force."
In response to Kraft's statement, Starbucks said Monday it "believes that it's unfortunate that Kraft has chosen to attempt this delaying tactic through seeking preliminary injunction, a course that will ultimately prove harmful to customers. Starbucks has repeatedly said that we have terminated our agreement with Kraft and we continue to look forward to assuming full responsibility for the sales and distribution of our packaged coffee products as of March 1, 2011."
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