New York -- Starbucks Coffee Company said it would pay Kraft Foods $2.79 billion to settle a dispute over the coffee-shop chain’s bagged-coffee business.
The payment, ordered by an arbitrator, consists of $2.23 billion in damages and $557 million in interest and attorneys’ fees. The company said it has adequate liquidity, both in the form of cash on hand and borrowing capacity, to fund the payment and will book it as a charge to its fiscal 2013 operating expenses.