"On April 2, 2012, Starbucks and Kraft exchanged expert reports regarding alleged damages on their affirmative claims. Starbucks claimed damages of up to $62.9 million from the loss of sales resulting from Kraft's failure to use commercially reasonable efforts to market Starbucks ® coffee, plus attorney fees. Kraft's expert opined that the fair market value of the Agreement was $1.9 billion . After applying a 35% premium and 9% interest, Kraft claimed damages
of up to $2.9 billion , plus attorney fees. The arbitration hearing commenced on July 11, 2012 and was completed on August 3. Starbucks presented evidence of material breaches on Kraft's part and sought nominal damages from Kraft for those breaches. Kraft presented evidence denying it had breached the parties' Agreement and sought damages of $2.9 billion plus attorney fees."
Kraft claims $2.9 Billion in damages - do you understand what is coming! This is why SBUX has made such large profits - Kraft laid all the groundwork and put in all the work and then SBUX cancelled and refused to pay on the contract. Why do you think SBUX offered $750 million to settle - that is really money in expenses that SBUX never showed but that should have been paid. You see, SBUX never really made the profits that they showed. They really stole them from Kraft. I can't wait until the day that you wake up and your stock is down 70%!
On the day the decision is announced you'll wish it was still last year - this is not old news, decision is yet to come and could come at any moment - no one can project when, except the guy deciding it.