Skip to content
Subscriber Only

Starbucks to Pay $2.79 Billion to Settle Coffee Dispute

Starbucks Corp. said it would pay Mondelez International Inc. $2.79 billion to settle a dispute over distribution in the coffee-shop chain’s bagged-coffee unit, as grocery-store sales become a growing part of the business.

The payment, ordered by an arbitrator, consists of $2.23 billion in damages and $557 million in interest and attorneys’ fees, Seattle-based Starbucks said today in a filing. The company said it has adequate cash and borrowing capacity to fund the payment and will book it as a charge to its fiscal 2013 operating expenses.