There’s a lot brewing in the tea industry these days, despite the economic downturn’s effect on sales. Most experts seem to feel this is a temporary fluctuation that will right itself as consumers’ financial prospects improve.
During boon times, management energy is rarely spent worrying about violations of top-level employment agreements when hiring new executives. But when a downturn comes, companies are watching their backs.
Consider Starbucks Corp.’s well-publicized lawsuit against a former division head for breaching a noncompetition agreement to join rival coffee chain Dunkin’ Brands Inc. The ex-Starbucks executive, Paul Twohig, agreed to settle out of court, paying his former employer $500,000 and subsequently delaying his start date, Starbucks disclosed.