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Bloomberg reports that the US Court of Appeals in Manhattan has ruled against Kraft Foods, saying that Starbucks can unilaterally end its distribution deal with the CPG company and find other ways of getting its products into grocery stores and other venues.

“We conclude that Kraft has failed to show that it faces an actual and imminent risk of injury that cannot be compensated by money damages,” the appeals judges said in their ruling.

Late last year, Starbucks accused Kraft of dropping the ball in its distribution of Starbucks products to grocery stores and other retailers; Kraft denied the charges. While Starbucks reportedly offered $750 million to resolve the dispute and end their relationship, Kraft is said to be holding out for a bigger payday and hoping that the courts would prevent the coffee giant from ending their deal before some sort of mutually agreeable resolution could be reached.

Kraft did find a glimmer of hope in the appeals court ruling, noting that “the Second Circuit did not rule on the fundamental issue of whether Starbucks can exit our contract without paying the fair market value, plus a premium ... That question will be decided in arbitration.”
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