Thai Court Order Halts All Production, Manufacturing, Sales, And Importation Of Nescafé Products Into Thailand – CoffeeTalk

Nescafé instant coffee production in Thailand has been temporarily halted by the Minburi Civil Court, following legal action initiated by Chalermchai Mahagitsiri, a shareholder in Quality Coffee Products (QCP), the former Thai manufacturer of Nescafé. This has led to fears of widespread shortages across various sales channels, including supermarket chains, small independent shops, and mobile street vendors. Tang Ngee Soon Superstore, a major wholesale and retail operator in Udon Thani province, warns that even a three-day absence of Nescafé products would cause substantial losses.

The Ministry of Commerce has offered assurances that a nationwide shortage is not anticipated. The conflict stems from Nestlé’s termination of its agreement with QCP, which had manufactured Nescafé in Thailand since 1990. Nestlé claims the termination, which took effect on December 31st, 2024, was legally sound and backed by a ruling from the International Court of Arbitration.

QCP was established in 1989 as a 50/50 joint venture between Nestlé and the influential Mahagitsiri family. After the agreement ended, the shareholders couldn’t reach a consensus on QCP’s future operations. Nestlé filed a petition with the Bangkok South Civil Court seeking QCP’s dissolution. Between March and April 2025, Chalermchai Mahagitsiri filed two civil lawsuits against Nestlé’s subsidiaries and directors in the Minburi Civil Court, resulting in the temporary injunctions.

Nestlé notified customers and retailers that it would be unable to accept further orders for Nescafé products until further notice. The company expressed concern about the far-reaching consequences of the court order, including loss of income for small-scale retailers, impact on Thai coffee farmers, and disruption to employees within Nestlé’s customer and supplier network.

Nestlé emphasized its commitment to resolving the situation and is pursuing legal avenues to overturn the temporary injunction. QCP generated total revenue exceeding 17.1 billion baht in 2023, marking a 10.69% growth, while its net profit stood at over 3.4 billion baht, reflecting a decline of 8.14% from the previous year.

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