- 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