Nestlé has initiated legal action against former business partners, Prayudh Mahagitsiri and Chalermchai Mahagitsiri, over alleged infringement of the Nescafé trademark. The company is seeking 577 million baht in damages for losses incurred during an eight-day suspension of Nescafé sales in Thailand, following an emergency court order from the Minburi Civil Court on April 3 that prohibited Nestlé from manufacturing, distributing, or importing products under the Nescafé name.
Later in April, the Central Intellectual Property and International Trade Court confirmed that Nestlé (Thai) Ltd holds exclusive rights to the “Nescafé” and “เนสกาแฟ” trademarks within Thailand.
On May 28, a mediation session at the same court took place involving the Mahagitsiri family, but the parties could not reach an agreement. The case has now been scheduled for trial on June 9 to resolve the dispute.
Previously, on March 14, Nestlé filed a petition with the Southern Bangkok Civil Court seeking to liquidate Quality Coffee Product Ltd (QCP), a 50:50 joint venture between Nestlé and the Mahagitsiri family, including Prayudh and Chalermchai. Nestlé’s goal was to facilitate each shareholder group’s independent reinvestment by dividing their shares and to appoint an administrator to oversee the company’s financial obligations until a resolution is reached.
The court examined three plaintiff witnesses on May 19, and the process is set to continue with defendant witnesses scheduled for June 26.
Despite the legal challenges, Nescafé distribution resumed in April, restoring sales to pre-dispute levels, according to Ekkapong Chokchaiwitut, CEO of Mother Marketing Plc, which operates several retail outlets in southern Thailand. However, overall market sales have dipped, likely due to the low tourism season.
Milin Veraratanaroj, chairman of Udon Thani’s Tang Ngee Soon Superstore, noted that rapid restocking of Nescafé products prevented significant customer shifts to other brands. He also mentioned that Nestlé Thailand might have imported some Nescafé stock from countries like Vietnam in anticipation of the termination of QCP last year.
Regarding the ongoing legal disputes, Mr. Milin suggested that Nestlé might limit its distribution and imports temporarily to observe how the court proceedings unfold.
