Nestlé Engages in Legal Dispute Over Nescafé Operations in Thailand
Swiss multinational faces court injunction amid conflict with former joint venture partner
Nestlé is currently involved in a legal dispute with the Mahagitsiri family, former partners in the joint venture Quality Coffee Products Co., Ltd. (QCP), which was established in 1990 to produce Nescafé in Thailand.
The conflict arose following the termination of the joint venture and associated licensing agreements on December 31, 2024.
On April 3, 2025, the Min Buri Civil Court issued an emergency injunction prohibiting Nestlé from manufacturing, outsourcing, distributing, or importing instant coffee products under the Nescafé brand in Thailand.
This injunction was initiated by Chalermchai Mahagitsiri, a shareholder in QCP. In response, Nestlé temporarily halted its distribution in Thailand for a week.
Subsequently, the Central Intellectual Property and International Trade Court affirmed Nestlé's exclusive rights to the Nescafé trademark in Thailand, allowing the company to resume its operations.
Nestlé has since continued distributing both locally produced and imported Nescafé products, including imports from Vietnam, Indonesia, and Malaysia.
While Nestlé has not disclosed the names of its local outsourcing partners, market surveys have identified companies such as Benjaphanpong, Toyo Seikan (Thailand), and Quality Coffee Products Ltd. (QCP) as producers of Nescafé products in Thailand.
Production at QCP ceased following the termination of the joint venture agreement.
On March 14, 2025, Nestlé filed for the liquidation of QCP with the Bangkok South Civil Court.
The court is currently reviewing the case.
Nestlé has stated that it has adhered to all regulations regarding the contract termination and court orders.
The Min Buri Civil Court has scheduled a hearing on June 20, 2025, to clarify its jurisdiction and address Nestlé's request to revoke the injunction.
According to the Office of Agricultural Economics, Thailand's robusta coffee production declined from over 17,000 tonnes in 2015 to approximately 5,900 tonnes in 2024.
More than 50% of this production is supplied to Nescafé.
NielsenIQ reported that the total value of Thailand's instant coffee market, including pure soluble coffee and 3-in-1 mixes, was estimated at 23 billion baht from April 2024 to March 2025.
Nescafé holds the largest market share in the 3-in-1 mix segment.
The conflict arose following the termination of the joint venture and associated licensing agreements on December 31, 2024.
On April 3, 2025, the Min Buri Civil Court issued an emergency injunction prohibiting Nestlé from manufacturing, outsourcing, distributing, or importing instant coffee products under the Nescafé brand in Thailand.
This injunction was initiated by Chalermchai Mahagitsiri, a shareholder in QCP. In response, Nestlé temporarily halted its distribution in Thailand for a week.
Subsequently, the Central Intellectual Property and International Trade Court affirmed Nestlé's exclusive rights to the Nescafé trademark in Thailand, allowing the company to resume its operations.
Nestlé has since continued distributing both locally produced and imported Nescafé products, including imports from Vietnam, Indonesia, and Malaysia.
While Nestlé has not disclosed the names of its local outsourcing partners, market surveys have identified companies such as Benjaphanpong, Toyo Seikan (Thailand), and Quality Coffee Products Ltd. (QCP) as producers of Nescafé products in Thailand.
Production at QCP ceased following the termination of the joint venture agreement.
On March 14, 2025, Nestlé filed for the liquidation of QCP with the Bangkok South Civil Court.
The court is currently reviewing the case.
Nestlé has stated that it has adhered to all regulations regarding the contract termination and court orders.
The Min Buri Civil Court has scheduled a hearing on June 20, 2025, to clarify its jurisdiction and address Nestlé's request to revoke the injunction.
According to the Office of Agricultural Economics, Thailand's robusta coffee production declined from over 17,000 tonnes in 2015 to approximately 5,900 tonnes in 2024.
More than 50% of this production is supplied to Nescafé.
NielsenIQ reported that the total value of Thailand's instant coffee market, including pure soluble coffee and 3-in-1 mixes, was estimated at 23 billion baht from April 2024 to March 2025.
Nescafé holds the largest market share in the 3-in-1 mix segment.
