It’s quite surprising that companies who make sweet products like chocolates and coffees are arguing over partnership issues that have soared to the core.

Starbucks attempted to end its partnership with Kraft Foods, saying that Kraft has not met its responsibilities and Kraft has challenged this statement by saying that Starbucks could successfully build its retail grocer coffee business with the soul support Kraft.

As per the latest updates, Starbucks is planning to take direct charge of its responsibilities beginning from March 2011.

If we look at the history, the strategic partnership between Kraft and Starbucks has a sweet beginning when Starbucks and Kraft joined hands to generate business and expand their operations in 1998.

But things have changed over the time and especially after Starbucks openly talked about the strategic disputes related to its partnership with Kraft.

Marc Firestone, Executive VP of Corporate and Legal Affairs and General Counsel at Kraft said, "Starbucks unilaterally and unjustifiably declared in public statements the agreement's termination, needlessly risking confusion among customers about the agreement's status,"

"In effect, Starbucks is trying to walk away from a 12-year strategic partnership, from which it has greatly benefited, without abiding by contractual conditions. Kraft reasonably expected Starbucks to honor the contract. We are confident in our position and look forward to presenting the facts before the arbitrator," added Firestone further.

Starbucks has defended its position saying that it is disappointed that Kraft is not living up to its obligation to ensure an orderly transition.

The coffee maker said that it is committed to ensuring that its grocery customers experience a seamless transition and that this move benefits both their customers and Starbucks