Nestlé Moves Ahead With Thai Coffee Production Facility Despite Legal Fued – CoffeeTalk

Swiss food giant Nestlé is pursuing its ambitions to establish its own coffee production facility in Thailand, despite a legal feud with the Mahagitsiri family. The conflict began when Nestlé was forced to pause Nescafé distribution for a week due to an injunction issued by the Min Buri Civil Court. However, Nestlé quickly regained its exclusive rights to the Nescafé trademark in Thailand, allowing the brand to resume operations.

Nescafé now sources both imported and locally produced brews from Vietnam, Indonesia, and Malaysia. A market probe by the Bangkok Post identified Benjaphanpong, Toyo Seikan (Thailand), and Quality Coffee Products Ltd (QCP) as current or former producers. Nestlé filed a liquidation case against QCP with the Bangkok South Civil Court in March 2021, but the matter is still under review.

Nestlé insists it has played by the rules throughout the legal battle, stating that any further disruptions to Nescafé’s Thai operations would affect the entire supply chain and affect various stakeholders. The Min Buri Civil Court is set to hold a hearing on June 20 to determine its jurisdiction and consider Nestlé’s push to have the injunction scrapped.

The domestic coffee sector in Thailand is struggling, with robusta bean output dropping from over 17,000 tonnes in 2015 to just 5,900 tonnes in 2024. NielsenIQ pegged the value of Thailand’s instant coffee market at 23 billion baht between April 2024 and March 2025, with Nestlé dominating the 3-in-1 segment.

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