Report Nestlé Brews Up Battle in Thai Coffee Market Amid Legal Dispute

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Picture courtesy of Nestlé

 

Nestlé, the Swiss multinational, is brewing a major shift in Thailand’s coffee industry as it gears up to challenge the influential Mahagitsiri family by planning its own coffee production plant. This move comes amid an ongoing legal tussle, which has seen both drama and determination from Nestlé.

 

The clash spilt over into public view earlier this month when the Min Buri Civil Court temporarily halted Nescafé distributions by issuing an injunction on April 3. The court prohibited Nestlé from producing or distributing its famed instant coffee under the Nescafé brand, forcing a brief pause in operations.

 

 

 

Nestlé, however, quickly regained momentum after the Central Intellectual Property and International Trade Court upheld its rights to the Nescafé trademark in Thailand. This ruling allowed the company to resume business as usual, supplying the Thai market with coffee sourced from Vietnam, Indonesia, and Malaysia, alongside local production efforts.

 

Despite playing close to the vest about local collaborations, a market investigation identified potential partners like Benjaphanpong, Toyo Seikan (Thailand), and Quality Coffee Products Ltd (QCP). Interestingly, operations at QCP hit a snag after the ending of joint ventures on December 31, 2024. This prompted Nestlé to pursue a liquidation case against QCP, currently under scrutiny by the Bangkok South Civil Court.

 

 

 

 

 

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Nestlé stands firm, with insiders determined to continue their legal fight against the Mahagitsiri family, who are stakeholders in QCP. Company representatives assert their compliance with legal standards and express their resolve to protect the supply chain and broader industry from the fallout of this dispute.

 

The Min Buri Civil Court is slated for a key hearing on June 20 to assess Nestlé’s plea to overturn the injunction. As the legal coffee saga unfolds, it occurs against a backdrop of declining robusta bean production in Thailand, impacting domestic suppliers and stirring the market even as the instant coffee segment remains a lucrative 23 billion baht industry.

 

Nestlé’s bold push signals not just a defence of its market share but a strategic expansion that could reshape Thailand’s coffee landscape amidst these complex legal and economic currents.

 

 

  Adapted by ASEAN Now from The Thaiger 2025-04-23

 

 

 

[Will B Good]

Don't like coffee, but going to start drinking Nestle now.