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Starbucks ending distribution deal with Kraft Foods

Starbucks is discontinuing its distribution arrangement with Kraft Foods, the famous coffee company announced last week. No details have been provided about why the decision was made or who will replace Kraft, which has distributed Starbucks packaged coffee to grocery stores and other outlets since 1998.

Starbucks CEO Howard Schultz made the announcement in a conference call with analysts. Starbucks products are now sold in grocery stores in 11 countries. It sells its packaged coffee through Kraft in Canada and the U.S. and its single-serve coffee containers in countries including Canada, the U.S., Austria and Ireland.

A November 4 release by Starbucks states the company informed Kraft a month ago of its intention to end the distribution arrangement and also says the “details and timing around any transition will be subject to further private dialogue.” Starbucks noted that their mutual customers would be well served throughout the transition.

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