Kraft began selling bags of Starbucks branded coffee in 1998 under a deal that was due to run until March 2014.
But Starbucks ended the contract in 2010, accusing Kraft of breaking the terms of their deal.
Kraft challenged that move by starting arbitration proceedings saying it had built a business worth $500 million a year.
On Tuesday the arbitrator ruled that Starbucks must pay $2.23 billion in damages plus $527 million in interest and legal costs.
Kraft Foods was spun off by Mondelez International last year and under an agreement between those two firms the payments from the case will go to Mondelez.
“We’re pleased that the arbitrator validated our position that Starbucks breached our successful and long-standing contractual relationship without proper compensation,” said Mondelez.
In a statement Starbucks said it “strongly disagreed” with the conclusions of the arbitrator.
“We believe Kraft did not deliver on its responsibilities to our brand under the agreement, the performance of the business suffered as a result, and that we had a right to terminate the agreement without payment to Kraft,” it said.
Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…
Millions of voters across the US chose to return Donald Trump to the White House…
Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…
Stocks around the world are rising as Donald Trump appears to be on the cusp…
Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…
Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…