According to Kraft, 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.
Kraft is seeking the injunction to stop Starbucks from proceeding as if the agreement has been terminated, when, in fact, the contract is still in force.
“Starbucks is proceeding with flagrant indifference to the terms of the contract and customary business practices,” said Marc Firestone, executive vice president, Corporate and Legal Affairs and General Counsel. “Instead of executing its rights under the contract to buy back the business, Starbucks has chosen a remarkably aggressive strategy that publicly disparages our achievements, interferes with our customer relations and threatens to harm Kraft.”
In an official statement, Starbucks Coffee Company said, ‘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’.
The statement continues: ‘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 1 March 2011. We have both the capabilities and experience to make this a seamless transition for our customers. Kraft’s self-serving and blatantly disruptive actions risk creating unnecessary confusion for our shared customers, and in turn their consumers.
‘Starbucks will vigorously oppose any action on Kraft’s part that would prevent Starbucks from rightfully assuming full control of our brand and business, and look forward to presenting our case through the pending arbitration process.’
Source: Kraft Foods/Starbucks
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