More trouble for Starbucks this week: A California-based company has sued Starbucks, saying that the coffee giant breached a contract — and has caused huge losses.
Mellace Family Brands, the producers behind Mama Mellace's Chocolate and Mama Mellace's Organics snacks, used to be sold in Starbucks locations in 2008, reports ABC News. But the contract between the companies was terminated after customers complained about the snacks. Starbucks says that the snacks had a defective level of fatty acids in the almonds, so the company took MFB products off the shelves. However, the lawsuit filed by Mellace Family Brands claims that the complaints stemmed from a gas leak at a Starbucks facility.
Since that contract was terminated, Mellace Family Brands have taken a huge hit — to the tune of $20 million, the lawsuit states. The company says it went bankrupt after the Starbucks debacle, and is suing for damages. In a statement, Starbucks said it discontinued business with them because of "ongoing quality issues."