(Lucy Nicholson/ Reuters)
PORTLAND, Ore. — Kraft Foods Inc. took a blow yesterday in its fight to keep Starbucks Corp. from ending its distribution partnership with the food company.
A US District Court judge denied Kraft’s request for a preliminary injunction, which would have stopped Starbucks from ending its distribution partnership with Kraft before the end of arbitration that is still underway and not affected by yesterday’s decision.
Kraft said it intends to appeal.
While Kraft said it was disappointed in the court’s decision, it is not a ruling on the core question of whether Starbucks can terminate the contract without compensating Kraft. That question, according to Kraft, will be decided in arbitration.
Starbucks said it will continue with its plans to take over distribution March 1.
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