(Undated) -- Starbucks will pay Kraft $2.75 billion to end a long-running dispute over a broken distribution agreement.

An arbitrator ruled Tuesday that Starbucks had breached its contract with Kraft after terminating a distribution agreement in 2010. At the time, the contract limited Starbucks to selling K-cup coffee that would fit in Kraft's Tassimo dispensers, even as Keurig dispensers were becoming more popular.

In a statement, Starbucks said it was happy the long-running dispute was over, though they disagreed with the arbitrator's final decision.