Starbucks Corp., which is in a legal dispute with Kraft Foods Inc. over a distribution deal, says the foodmaker has not performed up to its expectations — with Kraft admitting missteps in internal communications.

Kraft, which says the coffee chain violated terms of a distribution deal, announced late last week that a New York court may consider its request for a preliminary injunction against Seattle-based Starbucks. Both companies have until Jan. 21 to present their positions. Get the full story »