UPDATE 4-Starbucks says $2.76 billion Kraft split was necessary
(Rewrites first two paragraphs, adds Starbucks comment)
By Lisa Baertlein
Nov 13 (Reuters) - Starbucks Corp on Wednesday said breaking up with Kraft was hard to do, but worth the high price, a day after an arbitrator ruled it must pay a whopping $2.76 billion for ending the companies' grocery coffee partnership early.
The world's biggest coffee chain on Wednesday said it would restate results for the latest quarter to show an operating loss and issue debt following the bigger-than-expected break-up fee.
The payment resolves a three-year spat between the two U.S. brand titans and illustrates how costly it can be to sever a contract.
"It's difficult when a decision like this goes against you. But it is a one-time charge in a single moment in time, and now it's behind us," Starbucks Chief Executive Howard Schultz said on a conference call with analysts on Wednesday.
Starbucks has been posting strong revenue and profit gains despite the lackluster U.S. economy, and Schultz said the split cleared the way for the chain to significantly expand packaged coffee product sales in the grocery aisle.
It "was, without question, the right strategic decision for Starbucks, our brand and our shareholders," Schultz said.
Shares of Starbucks rose 0.6 percent to $81.11 in midday trading. Continued...