Starbucks (SBUX) Sets Date for Break-Up with Kraft (KFT)
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According to Kraft (NYSE: KFT), Starbucks (Nasdaq: SBUX) is planning on ending their 12-year coffee distribution deal on January 29, 2011.
Kraft said, in a December 17th filing, that they "would be out of stock of many products, thereby causing harm to its retail customers in the form of lost sales."
The lost business would take out $500 million from their top line, a notable chunk.
Starbucks objective from the whole deal is that they want to cut out the middleman, and sell directly to supermarkets.
Kraft is asking to hold a pre-motion court conference by December 23, 2010.
On the news today, Kraft is just about flat and Starbucks is trading up 0.1%.
Kraft said, in a December 17th filing, that they "would be out of stock of many products, thereby causing harm to its retail customers in the form of lost sales."
The lost business would take out $500 million from their top line, a notable chunk.
Starbucks objective from the whole deal is that they want to cut out the middleman, and sell directly to supermarkets.
Kraft is asking to hold a pre-motion court conference by December 23, 2010.
On the news today, Kraft is just about flat and Starbucks is trading up 0.1%.
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