Thai Court Denies Nestlé's Request to Appoint Asset Manager in Joint Venture Dispute
Ongoing legal proceedings over Quality Coffee Products Co., Ltd. assets continue amid unresolved shareholder disagreements
BANGKOK — The South Bangkok Civil Court has rejected Nestlé's request to appoint Grant Thornton Specialist Advisory Services Ltd. as a temporary administrator for Quality Coffee Products Co., Ltd. (QCP), a joint venture between Nestlé and the Mahagitsiri family.
This decision is part of the ongoing legal dispute following the termination of their partnership.
Established in 1990, QCP was a 50:50 joint venture formed to produce Nescafé products in Thailand.
In 2021, Nestlé announced the termination of its licensing agreement with QCP, effective December 31, 2024, a move later upheld by an international arbitration tribunal.
Since the termination, both parties have been unable to agree on the future operations of QCP, leading to multiple legal actions.
In March 2025, Nestlé filed a petition with the Bangkok South Civil Court seeking the dissolution of QCP, citing irreconcilable differences between directors and shareholders.
The company also requested the appointment of a liquidator or asset manager to oversee QCP’s financial obligations and safeguard company assets during the legal proceedings.
The court's recent decision denies this request, leaving the management of QCP's assets unresolved.
The dispute has also led to other legal challenges.
On April 3, 2025, the Min Buri Civil Court issued an emergency injunction prohibiting Nestlé from manufacturing, outsourcing, selling, or importing instant coffee products under the Nescafé brand in Thailand.
Nestlé subsequently challenged the jurisdiction of the Min Buri Civil Court, leading to the transfer of the case to the Central Intellectual Property and International Trade Court on June 20, 2025.
Despite the ongoing legal proceedings, Nestlé has continued its operations in Thailand.
The company has resumed the production and distribution of Nescafé products, sourcing both locally and through imports from countries such as Vietnam, Indonesia, and Malaysia.
Nestlé has also expressed its commitment to the Thai market, highlighting plans to continue local coffee bean procurement and sustain investments in the country.
The legal battle between Nestlé and the Mahagitsiri family underscores the complexities of dissolving long-standing joint ventures and the challenges of asset management during such disputes.
The outcome of these proceedings will have significant implications for the future of Nescafé's operations in Thailand.
This decision is part of the ongoing legal dispute following the termination of their partnership.
Established in 1990, QCP was a 50:50 joint venture formed to produce Nescafé products in Thailand.
In 2021, Nestlé announced the termination of its licensing agreement with QCP, effective December 31, 2024, a move later upheld by an international arbitration tribunal.
Since the termination, both parties have been unable to agree on the future operations of QCP, leading to multiple legal actions.
In March 2025, Nestlé filed a petition with the Bangkok South Civil Court seeking the dissolution of QCP, citing irreconcilable differences between directors and shareholders.
The company also requested the appointment of a liquidator or asset manager to oversee QCP’s financial obligations and safeguard company assets during the legal proceedings.
The court's recent decision denies this request, leaving the management of QCP's assets unresolved.
The dispute has also led to other legal challenges.
On April 3, 2025, the Min Buri Civil Court issued an emergency injunction prohibiting Nestlé from manufacturing, outsourcing, selling, or importing instant coffee products under the Nescafé brand in Thailand.
Nestlé subsequently challenged the jurisdiction of the Min Buri Civil Court, leading to the transfer of the case to the Central Intellectual Property and International Trade Court on June 20, 2025.
Despite the ongoing legal proceedings, Nestlé has continued its operations in Thailand.
The company has resumed the production and distribution of Nescafé products, sourcing both locally and through imports from countries such as Vietnam, Indonesia, and Malaysia.
Nestlé has also expressed its commitment to the Thai market, highlighting plans to continue local coffee bean procurement and sustain investments in the country.
The legal battle between Nestlé and the Mahagitsiri family underscores the complexities of dissolving long-standing joint ventures and the challenges of asset management during such disputes.
The outcome of these proceedings will have significant implications for the future of Nescafé's operations in Thailand.
