An interesting breach of contract dispute is brewing between coffee powerhouse Starbucks and a family-owned food company who alleges that the larger corporation has basically put them out of business. Starbucks reportedly decided to stop honoring its contract with Mellace Family Brands, who provided them roasted nut snacks, once customers started complaining about the quality of the nut products. Mellace views that decision to discontinue its products as a breach of contract; one which resulted in the California-based food company going bankrupt.
In an interesting twist to the story, an FDA investigation revealed that the roasted nut snacks were apparently contaminated due to gas leaks in a facility that actually belonged to Starbucks, not Mellace. If true, that would seem to support Mellace’s side of the issue, rather than the coffee giant’s version. Mellace has sued Starbucks for approximately $20 million in damages over the discontinuation of their roasted nut snacks.