Starbucks to Pay $2.79 Billion to Settle Coffee Dispute
 Inicio > Internacionales | Publicado el Miercoles, 13 de Noviembre del 2013
Starbucks to Pay $2.79 Billion to Settle Coffee Dispute

Esta noticia ha sido leída 91 veces

Bloomberg / Starbucks Corp. (SBUX) said it would pay Mondelez International Inc. (MDLZ) $2.79 billion to settle a dispute over distribution in the coffee-shop chain's bagged-coffee unit, as grocery-store sales become a growing part of the business.

The payment, ordered by an arbitrator, consists of $2.23 billion in damages and $557 million in interest and attorneys' fees, Seattle-based Starbucks said today in a filing. The company said it has adequate cash and borrowing capacity to fund the payment and will book it as a charge to its fiscal 2013 operating expenses.

The ruling settles a dispute that began in 2010, when Starbucks offered $750 million to end an agreement through which Mondelez, then known as Kraft Foods Inc., distributed its coffee to food retailers. Kraft rejected the offer. Starbucks sought to wrest control of its packaged coffee business as revenue grew and surpassed gains in other segments .

Recent revenue growth at Starbucks is being driven by new products, such as K-Cups, "that would not have been possible without ending the Kraft arrangement," David Tarantino, an analyst at Robert W. Baird & Co. in Milwaukee , said in a research note today. The company can continue to grow its packaged-coffee business at an "above-average pace for an extended period," he said.

In Starbucks's fiscal 2012, revenue for packaged coffee and teas sold in grocery stores and other retailers jumped 50 percent, compared with a 14 percent sales increase for the entire company. That growth was largely driven by sales of Starbucks and Tazo brand single-serve K-Cup packs, the company said in its annual filing. Starbucks said yesterday that it disagreed with the arbitrator's conclusion and said Kraft didn't deliver on its responsibility to the brand.

Moving Forward "They are paying more than I expected," Nick Setyan, an analyst at Wedbush Securities in Los Angeles, said yesterday in an e-mail. He had expected Starbucks to pay as much as $2 billion and rates the shares outperform, the equivalent of a buy recommendation. "Having said that, it's great to have it behind us now," he said.

Mondelez said yesterday in a statement that it would use the proceeds from the award to buy back stock.

While Kraft Foods Group Inc. remained the named party in the dispute after it was spun off from Mondelez in October 2012, Kraft agreed to direct any recovery to Mondelez and said the arbitration's outcome won't have a material financial impact on it.

Global Business In November 2010, Starbucks Chief Executive Officer Howard Schultz said he planned to terminate the distribution pact with Kraft, which started with an agreement in 1998 that was superseded by a new deal in 2004. The world's largest coffee chain was seeking to generate more of its revenue from grocery stores with new offerings such as Via, its single-serve coffee product. It's also expanding its packaged coffee business in more overseas markets.

Starbucks is "building a multibillion-dollar global consumer packaged business," Schultz said today on a webcast . "We now have the flexibility and the freedom to control our own destiny."

Kraft sought compensation for the "fair market value" of the business plus possibly a premium of as much as 35 percent of that value. Since they started working together, Starbucks's retail-grocery coffee business grew to $500 million in annual revenue from $50 million, Kraft said in November 2010.

Grocery Stores Starbucks said sales growth at grocery stores "quickly fell" after 2000 and its market share dropped to about 25 percent of grocery store premium coffee sales at the beginning of 2010 from almost 33 percent in 2005.

"Most certainly Starbucks has handled the channel business better than Kraft, more easily deploying single-serve as well as expanding into different products," Setyan said. He said he views Starbucks as "a global consumer-products company rather than simply a coffee retailer now. That would be impossible if Kraft still controlled coffee distribution."

Starbucks was little changed at $80.64 at 11:14 a.m. in New York. Deerfield, Illinois-based Mondelez rose 2.3 percent to $33.19.

To contact the reporter on this story: Chris Burritt in Greensboro at cburritt@bloomberg.net


Instagram Mi Refugio online Twitter Mi Refugio Online Facebook Mi Refugio Online Pagina Web Mi Refugio Online Pagina Web Mi Refugio Online Detener Mi Refugio Online

En Smart-Reputation.com tenemos la solución para mejorar tu reputación on line.
http://www.smart-reputation.com





Otras noticias de interés
Francisco Velasquez // VENEZUELA: VII Concurso Nacional de Poesía recibirá postulaciones hasta el 31 de mayo
Francisco Velasquez // VENEZUELA: Lufthansa suspende los vuelos a Caracas a partir del 18 de junio
Luis Oberto // Facundo Manes: "El Papa puede funcionar como un punto común para superar la grieta"
Grupo Yammine // PERÚ: YouTube: ¿es este el anuncio más racista de la historia? [VIDEO]
Luis Oberto // ARGENTINA: Francisco: "Los inmigrantes no son un peligro, están en peligro"
Serena Williams sufre para acceder a octavos
Francisco Velasquez // VENEZUELA: Asesinan en Caracas a Mayor General retirado del Ejército Nacional de Venezuela
Grupo Yammine // VENEZUELA: Venezuela buscará su primera victoria en repechaje olímpico de voleibol
Los controles de seguridad han comenzando ya en San Siro
Grupo Yammine // Primeiro-ministro garante que governo francês manterá reforma trabalhista
Grupo Yammine // Venezuela y el poder del capital internacional
Gonzalo Morales // PERÚ: Los correos que vinculan a Chlimper con audios de Vásquez
Yo soy Oliver Sánchez
Alberto Ardila // VENEZUELA: La crisis le está ganando a los niños con cáncer
MÉXICO: Recomiendan examen para confirmar intolerancia a lactosa
Grupo Yammine // Pechito López voló en Nurburgring y se consolida
Tomás Elías González // ECUADOR: Wembley será el fortín del Tottenham para la próxima Champions League
Gonzalo Morales // PERÚ: Nadine Heredia pide votar en contra de Keiko Fujimori
Tomás Elías González // Real Madrid y Atlético cuentan las horas para la 'gran final' (Previa)
Francisco Velasquez // VENEZUELA: (AUDIO) PetroCaribe preparada para la diversificación energética
Destacadas

Gonzalo Morales Miami Actriz de "Damien" habla de los extraños eventos ocurridos en la grabación de serie basada en "La profecía"
Francisco Velasquez Flan de nata
Francisco Velasquez  Obama aboga desde Hiroshima por un mundo sin armas nucleares
Francisco Velasquez ¡Con los caballos! La Vinotinto reta a Costa Rica previo a su debut en la Copa América
Francisco Velasquez Diversificar es mucho más que poner los huevos en distintas canastas

El Nacional / Los viajeros amantes de la romántica París podrán cumplir uno de sus sueños: dormir en la mítica torre Eiffel. Esto gracias a un concurso mundial lanzado por la...

Ads by Web24

No dejes de leer www.Noticias-Venezuela.com
http://www.noticias-venezuela.com

Cinco Dias / Los accionistas de Banco Popular son el equipo más sufridor de la Bolsa española. Los títulos de la entidad han pasado de valer 30 euros a rozar los...


El abogado Eduardo León, vinculado con el caso de suplantación del supuesto hijo del presidente Evo Morales y Gabriela Zapata, fue beneficiado el jueves con arresto domiciliario, pero hasta la...

Ads by Web24

Regístrate y conviértete en un experto en publicidad
Http:/www.adscoins.com

Correio da manha / Tiago Monteiro despistou-se numa corrida do WTCC que disputava na Alemanha. O piloto português terá escapado sem ferimentos mas foi transportado para o hospital. Monteiro estava...

ATENCIÓN: TODOS LOS CONTENIDOS PUBLICADOS EN ESTE SITE SON PROPIEDAD DE SUS RESPECTIVOS DUEÑOS, ENTORNOINTELIGENTE NO SE HACE RESPONSABLE POR LOS CONTENIDOS DE TERCEROS. CADA NOTICIA ESTÁ ASOCIADA AL MEDIO DE ORIGEN.
LOS AVISOS DE GOOGLE SON PROPIEDAD DE GOOGLE Y EN NINGÚN MOMENTO GUARDAN RELACION CON LA LÍNEA EDITORIAL DEL PORTAL ENTORNOINTELIGENTE.COM