Nestlé Thailand has informed its business partners via a letter that it will resume selling and distributing Nescafé brand instant coffee in the country.
The company announced on Saturday that the Central Intellectual Property and International Trade Court has affirmed Nestlé’s exclusive rights to the “Nescafé” trademarks in Thailand.
Cruawan Varunpaichit, Executive Business Manager of Nestlé Professional Thailand, signed the letter, stating that the company is set to continue distributing its instant coffee products.
This announcement comes ahead of a court hearing scheduled for Thursday, April 17, at the Min Buri Civil Court regarding Nescafé products.
Nescafé products are manufactured locally in a partnership with the Mahagitsiri family, under Quality Coffee Products Ltd (QCP).
However, this partnership concluded on December 31, 2024, leading to disagreements among shareholders about QCP’s future direction.
Prayudh Mahagitsiri, a shareholder in QCP, has sought a court injunction at the Min Buri Civil Court.
Subsequently, the court issued a temporary order halting Nestlé’s manufacturing, outsourcing, distribution, or importation of Nescafé-branded instant coffee in Thailand starting April 3.
On April 11, Nestlé appealed the injunction, citing adverse impacts on business partners, including coffee bean farmers and packaging suppliers.
A court hearing scheduled for April 17 will determine the fate of the injunction.
An industry insider noted that lifting the court order soon could allow Nestlé to normalize distribution quickly, thereby avoiding significant supply issues.
Conversely, if the injunction persists following the court’s ruling against Nestlé, the impact could lead to a prolonged shortage in the market, given Nescafé’s substantial market share in Thailand.
