Report Court Sides with Nestlé in Thai Coffee Feud, Reinstates Voting Rules

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File photo | Courtesy of GOPIXA - STOCK.ADOBE.COM

The Mahagitsiri family has suffered a setback in their ongoing legal tiff with global giant Nestlé. A court has ruled to reinstate the original voting rules in their Thai Nescafé joint enterprise.

 

The Central Intellectual Property and International Trade Court has revoked an injunction sought by the family, saying the original governance must return to Quality Coffee Products Co Ltd (QCP).

 

Originally, any decision by QCP's board required joint approval from both the Mahagitsiri and Nestlé directors. The Bangkok South Civil Court is still weighing Nestlé’s separate request to dissolve QCP amid this corporate clash. Investors are closely monitoring the standoff over the company's direction due to its potential implications.

 

Nestlé’s statement this week outlined new requirements for Mahagitsiri shareholders. The court now requires them to submit monthly financial reports. Meanwhile, the QCP factory in Chachoengsao has been inactive since January 2025, as confirmed by a Nestlé spokesperson, reported the Bangkok Post.

 

Despite production halts, Nescafé’s supply remains unaffected. Products are sourced from various factories across Thailand and imports from Vietnam and Malaysia keep the shelves stocked. The coffee giant assures customers that they won't notice any dips in quality or availability during this corporate skirmish.

 

Currently, there’s no word from Nestlé on establishing a new Nescafé production facility, but updates are expected soon.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-19

 

 

[JAG]

I dislike Nestlé as a company, but the courts do seem to have prevented Mahagitsiri from pulling a "Carlsberg/Chang" takeover on Nescafé within Thailand.