Edvard Pettersson reports at Bloomberg that Kraft Foods Inc., the world’s second-largest food company, says it faces “irreparable harm” if Starbucks Corp. is allowed to terminate an agreement that allows it to distribute Starbucks products to grocery stores.
With the agreement, Kraft built a business worth $500 million a year, it said in a filing yesterday in federal court in White Plains, New York. Kraft asked the court to reject Starbucks’ arguments that it won’t suffer irreparable harm if the agreement is ended by March 1, as Starbucks wants to do.
“Rather than deny Kraft’s motion based on myths about the nature of irreparable harm, the court should contrast the consequences of denying Kraft’s motion with the consequences of granting it,” the Northfield, Illinois-based company said. “That contrast reveals that the court faces a straightforward choice between allowing irremediable harm and preventing it.”
Kraft sued in December for an order to prevent Starbucks from ending the agreement before the companies have resolved their dispute. Seattle-based Starbucks, the world’s largest coffee-shop operator, plans to buy companies to build up its grocery business, Chief Executive Officer Howard Schultz said Dec. 1.
Read more at: Bloomberg