Nestlé has initiated legal proceedings in Thailand against former business partners Prayudh Mahagitsiri and Chalermchai Mahagitsiri, seeking damages amounting to 577 million baht over alleged infringement of the Nescafé trademark.
The lawsuit, disclosed in a company statement dated 30 May, centres on financial losses incurred during an eight-day suspension of Nescafé product sales. The disruption followed an emergency injunction issued by the Minburi Civil Court on 3 April, which temporarily prohibited Nestlé from manufacturing, outsourcing, distributing, or importing Nescafé-branded instant coffee in the Thai market.
Subsequently, the Central Intellectual Property and International Trade Court reaffirmed Nestlé (Thai) Ltd’s exclusive rights to use the “Nescafé” and “เนสกาแฟ” trademarks within Thailand. On 28 May, a mediation session was held at the same court involving both parties; however, no agreement was reached. The court has scheduled a trial and dispute resolution session for 9 June.
The dispute stems from the dissolution of Quality Coffee Product Ltd (QCP), a joint venture equally owned by Nestlé and the Mahagitsiri family. On 14 March, Nestlé submitted a petition to the Southern Bangkok Civil Court seeking the liquidation of QCP. The move was aimed at enabling each shareholder group to retrieve its respective share and proceed independently, as continued disagreement had stalled decision-making on QCP’s future.
In addition to the liquidation request, Nestlé asked the court to appoint an administrator to manage QCP’s financial responsibilities and protect company assets until a final ruling is delivered.
The Southern Bangkok Civil Court completed the examination of three plaintiff witnesses on 19 May and has scheduled the hearing of defendant witnesses for 26 June.
Despite the temporary halt, Nescafé distribution resumed in April. According to Ekkapong Chokchaiwitut, Chief Executive of Mother Marketing Plc, which operates Mother Supermarket and Mother Marché in southern Thailand, sales quickly returned to normal levels. Nonetheless, the broader market saw a decline, attributed to the low tourism season.
Milin Veraratanaroj, Chairman of Tang Ngee Soon Superstore, one of the largest traditional wholesale chains in Udon Thani, confirmed that rapid restocking of Nescafé products helped prevent a significant shift in consumer preference towards rival brands. He speculated that Nestlé Thailand may have sourced products from countries such as Vietnam to offset production concerns amid the anticipated termination of QCP.
Commenting on the ongoing litigation, Mr Milin noted that Nestlé may exercise caution in distributing or importing large volumes of product until the legal proceedings are resolved.
-Bangkok Post
