There is an old adage that big fish swim with big fish……and of course in the main this is both correct and proper…. It makes for a perfected synergy……A satisfyingly familiar, stultifying atmosphere, in which like minded organisations can plan and agree how to remove those dangerously Machiavellian attributes of creativity and entrepreneurialism from the market place!
So, it is always interesting for the trade voyeurs to hear when the model goes wrong …. the wheels fall off and situation goes ‘tits up’…. And this is now happening before our very eyes in the North American market place, where the two biggest of the big boys are busy embroiling themselves in the most public of ‘marital melt downs’
The two consumer giants have been arguing since 2010, when Starbucks fired Kraft as its distributor of packaged coffee to grocery stores… This, after a beautiful and middlingly successful relationship of 12 years duration, during which time Kraft insists it increased Starbucks packaged coffee sales by 10 fold to $500 – Impressive on the surface, but tracking at or blow the premium fresh ground sector growth rate, if you scratch the surface of the smoke and mirrors reporting!
Apparently, Starbucks alleges that Kraft breached a contract by not doing enough to market the coffee… Starbucks now oversees distribution itself… has a familiar ring to it all of this… and hence why arbitration has now been agreed upon as the route of last resort!
Slippery past master Kraft ( with its huge Marlboro experience) has of course denied the accusation and is demanding COMPENSATION!! Citing a pre existing contract, that says Starbucks will ‘pay Kraft fair value of their agreement, plus as much as 35% in certain circumstances’
Our Seattle friends have supposedly already offered an eye watering $750 m which was rejected and no counter offer made…hence, the move now to arbitration and the rumour mill signalling Kraft wants $2.9 BILLION….
WOW!! Seems I have been living in the countryside for too long …losing touch with the new reality of the ‘banking fat cats’ who now inhabit the coffee space…. All the more reason to sit ,reflect and relax, with a perfetto espresso moment as supplied by Aromo…the kings of caffeine candy!
Guru ( Andy Grelak) writes for Aromo Coffee – They are coffee experts focussed on providing convenient and tasty ways for the caffeine addict to take their medicine. Aromo supplies excellent ESE Coffee pods and superlative Senseo pods, both of which offer the espresso and filter connoisseur a no mess, no fuss, super fresh and environmentally conscious method to make stunning coffee… the guys at Aromo also have a range of Dualit branded capsules which make a brilliant and economic alternative to nespresso capsules