Emails of Starbucks give details of their rift with Kraft
Emails of Starbucks give details of their rift with Kraft

Both the CEOs of Starbucks Inc and Kraft Foods Inc expressed their displeasures for each other regarding the direction of a distribution deal that took place between the two firms in the last January as stated by Dow Jones that got the facts from an email from Starbucks on Tuesday.

In the email that date back to January 17 2010 Howard Schultz, the CEO of Starbucks Inc stated that they are concerned about the fact that in spite of their café business doing good Kraft failed to sell the packaged Starbucks coffee. He further stated that they haven't heard anything that suggested that the trend might get reversed in the times to come.

In reply to that Rosenfeld, the CEO of Kraft Foods Inc stated that they definitely would like to address the concern and further said that they are not at all happy with the state that their joint business was in but she felt that there are possibilities of making it better if both parties put in their bit.

Starbucks further pointed out the problems shown by the emails about relationship were discussed by top management officials and found out serious issues that needed to be taken care of. Kraft is the distributor of Starbucks packaged coffee to retailers as well as grocery stores.

Starbucks had pointed out repeatedly about the poor performance of Kraft in a straight forward way and even at high levels of the firms from a long period of time as stated by the spokesperson of Starbucks on Tuesday, Corey du Browa.

Kraft further stated that if Starbucks thinks of ending the distribution pact between the firms it has to pay a break-up fee under the key provision of the deal and Kraft wants that.

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