Thai Court Halts Nescafé Production and Imports Amidst Dispute

[webfact]

Picture courtesy of Daily News

 

Nestlé has issued a statement following a Thai court's temporary injunction preventing the production, sale, and import of Nescafé products in Thailand. The company plans to challenge the ruling.

 

The court's decision stems from a dissolved partnership between Nestlé and Quality Coffee Products Ltd (QCP), a joint venture with the Mahagitsiri family.

 

This partnership, operational since 1990, is set to end completely by 31 December 2024 following an arbitration ruling. The Thai court's interim order, however, has immediate effects, barring Nestlé from any Nescafé-related activities, a brand they solely own.

 

The controversy began after a breakdown in future business negotiation between the two shareholder parties in March and April 2025. Chalermchai Mahagitsiri filed a lawsuit against Nestlé and its directors, resulting in the 3 April ruling by the Min Buri Civil Court without hearing Nestlé's side. Nonetheless, Nestlé states they respect and will comply with the law.

 

 

 

Nestlé informed Thai retailers on 4 April 2025 of its inability to accept new orders and advised that existing Nescafé stock can still be sold. This ruling, Nestlé notes, could have significant implications for small businesses, including local coffee shops and suppliers, as well as dairy and coffee farmers who face disruptions in their supply chain.

 

Moreover, the injunction could impact millions of Thai consumers and those in export markets reliant on Nescafé's products. Nestlé is committed to resolving the issue, lodging a formal objection and providing detailed documentation to the court to overturn the order.

 

Committed to sustainable operations in Thailand for over 130 years, Nestlé has invested extensively in the country and promises continued investment to support consumers, employees, farmers, and business partners alike.

 

 Based on a story by Daily News

 

-- 2025-04-10

 

 

 

[mikeymike100]

Chalermchai Mahagitsiri filed a lawsuit against Nestlé and its directors, resulting in the 3 April ruling by the Min Buri Civil Court without hearing Nestlé's side. Nonetheless, Nestlé states they respect and will comply with the law.

 

Seems strange that the court didn't hear both sides?  could money be involved??

 

[Ralf001]

bugger... I will have to switch to Maccona 3in1 then.

[ikke1959]

No wonder the Nescafe is skyrocketing in the prices.. Thailand for the Thai is again here. a verdict without hearing the other party anda decision as always against the non Thai party

[Spilornis]

1 hour ago, ikke1959 said:

a verdict without hearing the other party anda decision as always against the non Thai party

Normal for an ex parte injunction.

May even have been that Nestle didn't want to submit to the jurisdiction preferring to enforce the foreign arbitration order in its favour.

Jurisdictional fights are the norm if you have enough money

[newbee2022]

5 hours ago, webfact said:

Picture courtesy of Daily News

 

Nestlé has issued a statement following a Thai court's temporary injunction preventing the production, sale, and import of Nescafé products in Thailand. The company plans to challenge the ruling.

 

The court's decision stems from a dissolved partnership between Nestlé and Quality Coffee Products Ltd (QCP), a joint venture with the Mahagitsiri family.

 

This partnership, operational since 1990, is set to end completely by 31 December 2024 following an arbitration ruling. The Thai court's interim order, however, has immediate effects, barring Nestlé from any Nescafé-related activities, a brand they solely own.

 

The controversy began after a breakdown in future business negotiation between the two shareholder parties in March and April 2025. Chalermchai Mahagitsiri filed a lawsuit against Nestlé and its directors, resulting in the 3 April ruling by the Min Buri Civil Court without hearing Nestlé's side. Nonetheless, Nestlé states they respect and will comply with the law.

 

 

 

Nestlé informed Thai retailers on 4 April 2025 of its inability to accept new orders and advised that existing Nescafé stock can still be sold. This ruling, Nestlé notes, could have significant implications for small businesses, including local coffee shops and suppliers, as well as dairy and coffee farmers who face disruptions in their supply chain.

 

Moreover, the injunction could impact millions of Thai consumers and those in export markets reliant on Nescafé's products. Nestlé is committed to resolving the issue, lodging a formal objection and providing detailed documentation to the court to overturn the order.

 

Committed to sustainable operations in Thailand for over 130 years, Nestlé has invested extensively in the country and promises continued investment to support consumers, employees, farmers, and business partners alike.

 

 Based on a story by Daily News

 

-- 2025-04-10

 

 

 

Perfect. No one needs that stuff. Thailand has wonderful coffee. Kick Nestlé out

[tifino]

will now have to add a 450gm Nestle CoffeeMate tub to the baggage...  and then IOs treat it like an eCig...

[hotchilli]

5 hours ago, mikeymike100 said:

Seems strange that the court didn't hear both sides?  could money be involved??

I's almost guarantee it

[rabas]

3 hours ago, ikke1959 said:

No wonder the Nescafe is skyrocketing in the prices.. Thailand for the Thai is again here. a verdict without hearing the other party anda decision as always against the non Thai party

 

Probably not Nescafe.

 

When Red Cup 400g suddenly jumped to ~300 baht I bought it anyway but it's not the same. It tastes similar but it's a fine powder, not very granular. So I doubt its from Nescafe. Powdery instant coffee was an older technology. So we are being played both ways.

[CMFarang]

We personally have no nestle products in our home and refuse them in restaurants.

In Canada,  nestle is a blight on the bottled water trade , taking all and leaving none for some locals. Banning them is a good move.  for any reason .

[PomPolo]

Do like the Red Nescafe 3in1 but there are a bunch of other brands out there gonna spread my wings - could be worse I could be American and it would just cost double

[KannikaP]

17 minutes ago, PomPolo said:

Do like the Red Nescafe 3in1 but there are a bunch of other brands out there gonna spread my wings - could be worse I could be American and it would just cost double

Red Nescafe 3 in 1, has more sugar and non-dairy whitener than it does actual coffee. It is an abomination.

But I guess some people have to like it.

[Ralf001]

3 minutes ago, KannikaP said:

Red Nescafe 3 in 1, has more sugar and non-dairy whitener than it does actual coffee. It is an abomination.

But I guess some people have to like it.

 

Goes good with a 1/4 teaspoon of bovril mixed in.

[Srikcir]

1 hour ago, newbee2022 said:

Perfect. No one needs that stuff. Thailand has wonderful coffee. Kick Nestlé out

This ruling, Nestlé notes, could have significant implications for small businesses, including local coffee shops and suppliers, as well as dairy and coffee farmers who face disruptions in their supply chain.

So destroy Thai businesses. Not an issue?

[KannikaP]

22 minutes ago, Srikcir said:

This ruling, Nestlé notes, could have significant implications for small businesses, including local coffee shops and suppliers, as well as dairy and coffee farmers who face disruptions in their supply chain.

So destroy Thai businesses. Not an issue?

There is NO dairy in Nescafe 3 in 1.

[Packer]

Another case of Chang doing over Carslberg, and EST (Exact Same Thing) doing over Pepsi? 

[Negita43]

Now I know why I can't get 3 in 1 Cappuccino

[pacovl46]

Love it! Hopefully they’ll never be allowed to sell in Thailand ever again because Nestle is one of the worst companies on the planet! 

[BritManToo]

7 hours ago, webfact said:

This ruling, Nestlé notes, could have significant implications for small businesses, including local coffee shops and suppliers, as well as dairy and coffee farmers who face disruptions in their supply chain.

 

Thought coffee shops used real coffee beans?

[Sir Dude]

Talk to Carlsberg and Pepsi about how this will shakeout... will soon see a new coffee brand at the old Nescafe factory after they swipe the product recipe and rebrand everything. This is how it works... can also go ask that gold mining company too how it works, which is do a joint venture for a while, then the Thai company family boots you out and steals everything. This has happened so many times.

[impulse]

23 minutes ago, Sir Dude said:

Talk to Carlsberg and Pepsi about how this will shakeout... will soon see a new coffee brand at the old Nescafe factory after they swipe the product recipe and rebrand everything. This is how it works... can also go ask that gold mining company too how it works, which is do a joint venture for a while, then the Thai company family boots you out and steals everything. This has happened so many times.

 

And they rag on Trump for trying to end that kind of fooknuttery.  One more example of countries wanting things one way.

 

[BritManToo]

What about my cornflakes!

[Aussiepeter]

I was in LOS in the 90's when Carlsberg set up here. With their Thai partner, they built a brewery with two departments, one producing Carlsberg beer & the other turning out Chang beer (elephant beer, with a higher alcohol level) for the local market. Chang beer was marketed alongside Carlsberg. The suppliers of both beers, as I observed first-hand, 'instructed' outlets to take a certain number of cases of Carlsberg in addition to their other needs, even if they didn't really want to stock it. Thai workers quickly took to Chang beer, as you get more alcohol for less money. At the time, Thais told me that Carlsberg tasted "jute" (weak) by comparison, so they wouldn't buy it. Some wholesalers who supplied beer Chang & Carlsberg were also the suppliers of the cheap spirit known as lao-cao (my translation). Shops stocked Carlsberg, even if they knew that locals would not buy it, to 'ensure supply' of their best-selling cheap alcohol products. For expats like me who liked Carlsberg it was a field day, as Carlsberg was often heavily discounted. At one stage, a shopkeeper almost begged me to buy Carlsberg at 4 large bottles for 100 baht, every time he saw me ! When Carlsberg left LOS, they lost millions of dollars & simply walked away. The National Australia Bank also lost an enormous amount of money around the same time, in a failed banking venture into LOS. Someone once said to me "how do you make a small fortune in LOS" ? (easy) "come here with a large one"......

[PremiumLane]

1 hour ago, impulse said:

 

And they rag on Trump for trying to end that kind of fooknuttery.  One more example of countries wanting things one way.

 

 

So, countries can't have things one way, but Trump can? And this has sweet FA to his tariffs anyway 

[impulse]

57 minutes ago, PremiumLane said:

So, countries can't have things one way, but Trump can? And this has sweet FA to his tariffs anyway 

 

If you believe that, you have no clue about cross border business and fair access to unbiased courts in the countries you do business in.  Tariffs are just a lever to negotiate fair access to the courts (among 100 other factors that levels the playing field)

 

For years, I've been reading about the ridiculous tariffs on imported wine and imported cars and the shabby, biased way foreign companies are treated in Thai courts.  But nobody had a plan to address them.  Until the Bad Orange Man.

 

[bkk6060]

Could careless I would never buy anything with the name Nestlé on it especially the water.

[it is what it is]

 

i recall being in a 7/11 and a do gooder gen z individual pompously castigating another customer for buying a nestle product, seemingly completely ignorant of the fact he was shopping in a 7/11...

[rough diamond]

36 minutes ago, it is what it is said:

 

i recall being in a 7/11 and a do gooder gen z individual pompously castigating another customer for buying a nestle product, seemingly completely ignorant of the fact he was shopping in a 7/11...

And the point being what?

[Dogmatix]

If the casino is really only 10% of the entertainment complex which will make such a huge contribution to GDP growth even without the casino, why not go ahead without the casino which is causing so much trouble?

[lordgrinz]

I just buy the cheap Khao Shong Coffee from 7-11 🤪