Report Nestlé's B577m Brew Battle: Coffee Crisis Heads to Court

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File photo courtesy of Bangkok Post

 

Nestlé has stirred the pot by launching a colossal 577 million baht lawsuit, accusing former business collaborators of infringing the Nescafé trademark. The multinational coffee titan halted sales for eight tense days in April due to a Minburi Civil Court injunction.

 

This dramatic move stopped all Nescafé manufacturing, distribution, and importation in Thailand, fuelling the current legal showdown.

 

The April court injunction was swiftly countered later in the month, with the Central Intellectual Property and International Trade Court siding with Nestlé (Thai) Ltd. They affirmed the company’s exclusive rights to the Nescafé trademark.

 

However, the brewing legal storm hasn't cleared up yet. On May 28, a peace-making mediation session involving the Mahagitsiri family hit a gridlock, as opposing sides couldn’t find common ground. The courts have put this bean battle on a fast track, with trial proceedings set to spill on June 9.

 

Adding more heat to this coffee drama, back on March 14, Nestlé requested the Southern Bangkok Civil Court to dissolve Quality Coffee Product Ltd (QCP). Jointly owned by Nestlé and the Mahagitsiris, QCP's future has been a matter of disagreement.

 

Nestlé is pushing for a fair split of assets and has further called for a court-appointed administrator to guard QCP's finances during its rocky liquidation phase.

 

As the coffee dust settles post-resumption of Nescafé sales, regional supermarket moguls like Ekkapong Chokchaiwitut and Milin Veraratanaroj report stable restocking efforts. Despite this, the overall coffee market took a slight hit, possibly from the usual tourism lull.

 

The quick restocking may have come in part from external suppliers like Vietnam, a move seen as strategic post-QCP fallout last year.

 

As Nestlé tightens its grip amidst this legal battle, all eyes remain fixed on how the java juggernaut steers through these turbulent tides. With court dates looming and investor interests at stake, the saga promises to be as robust and intense as a fresh brew of their iconic Nescafé.

 

  Adapted by ASEAN Now from Bangkok Post 2025-05-31

 

 

 

[JoePai]

Well done Nestlé  👍