Images Food reports that Starbucks criticised Kraft Foods recently for disclosing the terms of a distribution agreement for packaged Starbucks coffee.

Kraft Foods has been distributing Starbucks’ packaged coffee to retail outlets since 1998, but according to Starbucks, it informed Kraft in October that it intends to end the distribution agreement.

Starbucks publically announced its intention to end the agreement in a statement released on November 4, in which it said: “The details and timing around any transition will be subject to further private dialogue. Starbucks intends to work closely with Kraft to ensure an orderly transition, putting an emphasis on ensuring their mutual customers are well served.”

In response Kraft issued a statement clarifying the terms of the agreement on the same evening.

It said: “Kraft Foods’ agreement with Starbucks regarding the sale of packaged coffee in grocery stores and other channels is perpetual. Importantly, if Starbucks decides to exit its relationship with Kraft Foods, the agreement requires Starbucks to pay Kraft Foods the fair market value of the business plus, in certain instances, a premium.”

Starbucks responded, saying that Kraft’s statement mischaracterised the agreement.

Read more at: Images Food