Nestlé Files $557 Million Baht Lawsuit In Thailand Over Halt In Coffee Sales – CoffeeTalk

Nestlé has filed a lawsuit against its former business partners in Thailand for rights infringement of the Nescafé trademark. The company is seeking damages of 577 million baht from Prayudh Mahagitsiri and Chalermchai Mahagitsiri, based on losses incurred during an eight-day halt in Nescafé product sales following the Minburi Civil Court’s emergency injunction order on April 3. The Central Intellectual Property and International Trade Court later confirmed that Nestlé (Thai) Ltd has the exclusive right to use the “Nescafé” and “เนสกาแฟ” trademark in Thailand.

A mediation session occurred at the Central Intellectual Property and International Trade Court regarding the recent lawsuit involving the Mahagitsiri family for allegedly infringing upon the Nescafé trademark. However, representatives from both parties were unable to reach an agreement. The court scheduled the case for trial and set the issues for dispute resolution on June 9.

On March 14, Nestlé filed a petition with the Southern Bangkok Civil Court, asking the court to liquidate Quality Coffee Product Ltd (QCP), a 50:50 manufacturing company co-owned by Nestlé and the Mahagitsiri family. The request was meant to let each shareholder group obtain its respective share and reinvest independently, as the company’s directors and shareholders were unable to agree on the future direction of QCP.

Following the resumption of Nescafé product distribution in April, Ekkapong Chokchaiwitut, chief executive of Mother Marketing Plc, operator of Mother Supermarket and Mother Marché in southern Thailand, said sales have returned to their usual levels. However, the overall market recorded a dip in sales, likely due to the low tourism season.

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