Kraft Foods Incorporated has declared that its current quarterly revenue is below their expectations and much weaker than what they had forecasted. The primary reason for this dip in revenue is the fall in sales. In fact, sales have fallen considerably after the raised the costs of consumer products in order to match the hike in the price of ingredients which ultimately led to a rise in the total cost of production.
The manufacturers of Velveeta cheese and Maxwell House coffee along with Cadbury chocolate are also likely to miss out on a sizeable portion of their customers. Their business selling packaged coffee at Starbucks is likely to experience a dip in sales.
The world’s largest coffee company made known its apprehensions on Thursday. A company spokesperson said that they were planning to negate and put and end to their twelve year deal. This was mainly so that they could exercise better and more efficient control over the distribution of their packaged coffee in order to lower the chances of a dip in the sales.
The markets have been particularly weary for Kraft Foods. Kraft shares which were previously closed at zero decimal seven percent in the regular trading fell to one decimal nine percent on Thursday. They have now been grounded at thirty one decimal two zero dollars. The fall that they experience was in spite of the company’s declarations of having made better than expected quarterly profit. In addition they also revealed their economic outlook for the next two years. 
Mr. Tim McLevish is the chief financial officer of Kraft Foods. Since neither Kraft itself nor Starbucks has yet put down any specifics, he told analysts and other media personnel that it was yet to early to reach a conclusion. He said that they were not in a position to gauge the impact or qualify any particular result of losing out on business. This business has usually benefited both companies greatly with sales accounting to fiver hundred million dollars.