Starbucks, the largest coffee-shop chain and Kraft Foods, the largest confectionary maker in the US have decided to end the bagged coffee distribution deal as Starbucks is not happy with Kraft’s distribution patterns and looking for partners and other retailers to promote its single-cup coffee packs.

Kraft seems to have no issues with the deal termination as far as Starbucks pays off to end the arrangement. Kraft has been distributing Starbucks coffee in grocery stores since twelve years. Hence, ending a partnership that has run for more than a decade is going to cost Starbucks a big buck.

Both Starbucks and Kraft have not yet provided any specific comments on the news and hence, the compensation figure remains under the carpet.

Sharon Zackfia, an analyst at William Blair believes that Starbuck is at a point where they feel like they need to partner with others. She also mentions that this adjournment will turn more profitable for Starbucks’ business once the compensation is paid off.

Starbucks seems to have adopted a different and more concrete business strategy as a part of its expansion plan. The coffee-shop chain is trying to connect with the grocery retailers and club stores to roll out its bagged coffee product –Via. This high-end instant coffee was launched last year and became a major hit instantly.

"I think with the launch of Via, Starbucks appears to be much more comfortable about owning the process themselves than with a partner, and I suspect that this is where that's coming from," added Zackfia.

However, the move may also prove risky for the coffee-shop chain as the decision to take charge of the direct ownership process may compel Starbucks to shift its focus from its standard services to a relatively new product like Via. And, Starbucks has not revealed any plan so far that would take care of these sudden modifications.