Starbucks to pay $2.75B in Kraft dispute to Mondelez

|About: Starbucks Corporation (SBUX)|By:, SA News Editor

Starbucks (SBUX) has been ordered by an arbitrator to pay ~$2.75B for prematurely terminating its grocery store distribution deal with Kraft Foods (KRFT) in 2011.

The payment will be made to Mondelez International (MDLZ), which took over Kraft's grocery operation in its spin off. The award includes $2.23B in damages and $527M in prejudgement interest and attorneys' fees.

Mondelez intends to use the after-tax proceeds for share repurchases.

SBUX -1.6%, MDLZ +3.3%, and KRFT +0.4% AH