Mahagitsiri Family Loses Legal Round in Nescafé Joint Venture Dispute
Thailand's Central Court reinstates original voting rules at Quality Coffee Products amid ongoing legal conflicts.
The legal dispute between the Mahagitsiri family and Nestlé concerning their Nescafé joint venture in Thailand has taken a significant turn.
The Central Intellectual Property and International Trade Court of Thailand has ruled to revoke a temporary injunction sought by the Mahagitsiri family, restoring the original voting rules at Quality Coffee Products Co Ltd (QCP).
This ruling was announced in a statement from Nestlé.
Under the reinstated voting rules, decisions made by the board of directors at QCP must receive joint approval from both the Mahagitsiri family directors and Nestlé’s directors.
The ongoing disagreement regarding the future business direction of QCP has been highlighted as a central issue in the legal battle, which is of interest to foreign investors closely observing the situation.
In conjunction with the ruling, shareholders from the Mahagitsiri family have been mandated to prepare monthly income and expense reports, along with accounts of assets and liabilities for QCP. These documents are to be submitted to the court to safeguard the interests of both QCP and the shareholders aligned with Nestlé.
As part of the ongoing proceedings, the Bangkok South Civil Court is examining Nestlé's request for the dissolution of QCP. In a related development, Nestlé has confirmed that production at the QCP plant in Chachoengsao was halted on January 1, 2025, and has not yet recommenced.
The company currently sources Nescafé products from various production facilities, including original equipment manufacturers in Thailand.
Additionally, Nescafé products are also imported from neighboring countries such as Vietnam and Malaysia.
A Nestlé spokesperson stated, "Despite the ongoing legal disputes between the two groups of QCP shareholders, we currently have sufficient Nescafé products to distribute to all retailers nationwide.
Consumers can rest assured that Nescafé is available with the same great taste and high quality."
Although Nestlé has not provided any updates regarding plans for a new manufacturing facility for Nescafé, it indicated that further information will be shared in due course.
The Central Intellectual Property and International Trade Court of Thailand has ruled to revoke a temporary injunction sought by the Mahagitsiri family, restoring the original voting rules at Quality Coffee Products Co Ltd (QCP).
This ruling was announced in a statement from Nestlé.
Under the reinstated voting rules, decisions made by the board of directors at QCP must receive joint approval from both the Mahagitsiri family directors and Nestlé’s directors.
The ongoing disagreement regarding the future business direction of QCP has been highlighted as a central issue in the legal battle, which is of interest to foreign investors closely observing the situation.
In conjunction with the ruling, shareholders from the Mahagitsiri family have been mandated to prepare monthly income and expense reports, along with accounts of assets and liabilities for QCP. These documents are to be submitted to the court to safeguard the interests of both QCP and the shareholders aligned with Nestlé.
As part of the ongoing proceedings, the Bangkok South Civil Court is examining Nestlé's request for the dissolution of QCP. In a related development, Nestlé has confirmed that production at the QCP plant in Chachoengsao was halted on January 1, 2025, and has not yet recommenced.
The company currently sources Nescafé products from various production facilities, including original equipment manufacturers in Thailand.
Additionally, Nescafé products are also imported from neighboring countries such as Vietnam and Malaysia.
A Nestlé spokesperson stated, "Despite the ongoing legal disputes between the two groups of QCP shareholders, we currently have sufficient Nescafé products to distribute to all retailers nationwide.
Consumers can rest assured that Nescafé is available with the same great taste and high quality."
Although Nestlé has not provided any updates regarding plans for a new manufacturing facility for Nescafé, it indicated that further information will be shared in due course.
