Nestlé Thailand has officially notified its business partners that they can once again begin selling and distributing instant coffee products under the Nescafé brand in Thailand.
In a recent update, the company announced that the Central Intellectual Property and International Trade Court has affirmed Nestlé’s exclusive rights to the “Nescafé” trademark within the country.
The letter, signed by Cruawan Varunpaichit, Executive Business Manager of Nestlé Professional Thailand, confirmed that distribution of instant coffee products can now resume.
This development comes ahead of a hearing scheduled for Thursday at the Min Buri Civil Court regarding Nescafé products.
Nescafé is locally produced through a joint venture with the Mahagitsiri family known as Quality Coffee Products Ltd (QCP).
However, the joint venture agreement concluded on December 31, 2024, and shareholders have struggled to agree on QCP’s future direction.
Prayudh Mahagitsiri, a shareholder in QCP, filed a petition with the Min Buri Civil Court to obtain an injunction against Nestlé.
The court subsequently issued an order temporarily prohibiting Nestlé from manufacturing, outsourcing production, distributing, or importing instant coffee products under the Nescafé brand in Thailand, effective April 3.
On April 11, Nestlé filed an appeal against this injunction, arguing that the court order negatively impacts its supply chain partners, including coffee bean farmers and packaging suppliers.
A hearing is set for April 17 to determine whether the injunction will be lifted.
Industry sources indicated that if the court order is lifted soon, allowing Nestlé to return to normal distribution, the impact on supply may be minor. Conversely, if the court upholds the injunction, a prolonged shortage could ensue, as Nescafé commands a significant share of Thailand’s coffee market.
