Nestlé sues Prayudh, Chalermchai for 577M baht over Nescafé split

Nestlé Thailand has provided an update on the ongoing trademark dispute over the Nescafé brand, following a recent court session on May 28, 2025. 

The case involves Nestlé S.A. of Switzerland, as the owner of the Nescafé trademark, and Nestlé Thailand, which holds exclusive rights to use the trademark in the country, against Thai business figures  Prayudh Mahagitsiri and Chalermchai Mahagitsiri. 

The lawsuit stems from alleged actions that have impacted the rights to the Nescafé trademark in Thailand.

Nestlé is seeking 577 million baht in damages, calculated from an eight-day suspension of Nescafé sales. The Central Intellectual Property and International Trade Court issued a temporary injunction, confirming that Nestlé Thailand holds exclusive rights to use the “Nescafé” and “เนสกาแฟ” trademarks within Thailand.

Despite mediation efforts, the parties were unable to reach an agreement, leading the court to proceed with the formal trial process. The next hearing is set for June 9, 2025.

Earlier in March 2025, Nestlé filed a petition with the Bangkok South Civil Court seeking the dissolution of Quality Coffee Products Company Limited (QCP), a 50/50 joint venture between Nestlé and the Mahagitsiri family. 

The petition was filed after the parties could not agree on the future direction of QCP, which halted its operations, including Nescafé production, on January 1, 2025.

Nestlé has also requested the court appoint a liquidator to manage QCP’s finances and protect the company’s assets until the dissolution decision is finalised. 

Witness testimonies from the plaintiff were completed on May 19, 2025, and the defence will present its witnesses on June 26, 2025.

Despite the legal proceedings, Nestlé remains committed to minimising any impact on stakeholders and continues to be Thailand’s largest purchaser of Robusta coffee beans. The company also plans to continue investing in Nescafé production within Thailand.

From 1990 to 2024, Nescafé products in Thailand were produced by QCP, which was jointly owned by Nestlé and the Mahagitsiri family. 

However, it is important to note that the Mahagitsiri family holds no ownership of the Nescafé brand, which, along with the related production technology, remains entirely under Nestlé’s control.

Nestlé had a 12-year contract with QCP, a 50/50 joint venture between Nestlé and the Mahagitsiri family, for the production and distribution of Nescafé in Thailand. This contract included options for renewal up to three times, subject to mutual agreement.

The second term of this agreement ended on December 31, 2024. However, the two parties were unable to reach a consensus on renewing the contract, leading Nestlé to decide to terminate the agreement.

An international arbitration tribunal upheld Nestlé’s right to terminate the contract, confirming that Nestlé was not obligated to extend the manufacturing agreement with QCP.

Following the contract termination, QCP filed a lawsuit seeking to prohibit Nestlé from producing, distributing, or importing Nescafé products in Thailand.

In response, Nestlé filed a petition with the Bangkok South Civil Court to dissolve QCP and request an equitable division of the company’s assets.