There WILL be blood. We predicted things would get ugly between Kraft and Starbucks: Here, here and here.
Kraft’s injunction against Starbucks to prevent it from unilaterally severing its license for retail coffee was denied by the U.S. District Court for the Southern District of New York.
What does that mean?
Well, likely this will go to a court case if the arbitration mandated by the licensing agreement doesn’t produce a settlement. Even if the arbitration works, it’s possible one or both sides will still elect to pursue legal action.
Kraft plans on appealing the ruling, since it says Starbucks is now talking directly with retail customers about its plans to transition to control of the brand at retail on March 1st.
Stay tuned!
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