Nestlé has filed a lawsuit against its former business partners in Thailand, accusing them of infringing on the Nescafé trademark.
In a statement dated May 30, the company revealed it is seeking 577 million baht in damages from Prayudh Mahagitsiri and Chalermchai Mahagitsiri.
The claim stems from financial losses incurred during an eight-day suspension of Nescafé product sales, which followed an emergency injunction issued by the Minburi Civil Court on April 3.
The court order temporarily barred Nestlé from manufacturing, outsourcing, distributing, or importing instant coffee products under the Nescafé brand within Thailand.
Later in April, the Central Intellectual Property and International Trade Court ruled that Nestlé (Thai) Ltd holds the exclusive right to use the “Nescafé” and “เนสกาแฟ” trademarks in the country.
A mediation session concerning the case was held on May 28 at the Central Intellectual Property and International Trade Court, with both parties in attendance.
However, no agreement was reached. The court has scheduled the trial and set the issues for adjudication on June 9.
The lawsuit follows a separate legal move by Nestlé earlier this year. On March 14, the company filed a petition with the Southern Bangkok Civil Court seeking the liquidation of Quality Coffee Product Ltd (QCP), a joint venture equally owned by Nestlé and the Mahagitsiri family.
The request aims to allow each shareholder group to claim its respective stake and pursue independent business plans, as internal disagreements have stalled the company’s operations.
Nestlé also requested that the court appoint an administrator to manage QCP’s financial obligations and safeguard its assets during the proceedings.
On May 19, the court completed the examination of three plaintiff witnesses and scheduled testimony from the defendants’ side for June 26.
Despite the legal turmoil, Nescafé products returned to store shelves in April. According to Ekkapong Chokchaiwitut, CEO of Mother Marketing Plc—operator of Mother Supermarket and Mother Marché in southern Thailand—sales have since returned to normal levels.
He noted, however, that the overall market saw a decline, likely due to the low tourism season.
Milin Veraratanaroj, chairman of Tang Ngee Soon Superstore in Udon Thani, one of the largest traditional wholesale chains in the region, said fast restocking of Nescafé products helped prevent a major shift to competing brands.
He also suggested that Nestlé may have imported Nescafé products from countries such as Vietnam in preparation for QCP’s potential closure last year.
Regarding the ongoing dispute, Mr. Milin said Nestlé may now be cautious with large-scale imports or distribution, preferring to wait for the court’s final ruling.
