NORTHFIELD, Ill. — Kraft Foods Inc. said Monday it is starting an arbitration proceeding against Starbucks Corp.’s move to end its agreement with Kraft to distribute and promote its packaged coffee in stores.
Retailers, who begrudgingly went along when food makers pushed up prices to recoup record-high costs, are flexing newfound muscle and demanding price cuts to match the recent steep retreat in ingredient costs. Food makers are resisting, saying the uncertain economy and volatile costs make price cuts unwise. But retailers aren't backing down.
Emily Fredrix and Sarah Skidmore
March 16, 2009
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