BANGKOK — A representative of Nestlé Thailand has reiterated the company’s determination to continue the production of “Nescafé” in Thailand despite a business conflict with Quality Coffee Products Co. (QCP), its former production partner.
This confirmation followed after the Central Intellectual Property and International Trade Court ruled on April 11, 2025, in Nestlé’s favor and allowed the company to resume its Nescafé operations as usual.
The representative explained to Matichon on April 25 that the business conflict that led to the termination of the contract with QCP at the end of 2024 was due to business disagreements and subsequent legal action to dissolve QCP. They emphasized that it was a legal process to dissolve the company and not a bankruptcy filing.
Temporary Import and Outsourced Production Adjustments
During the disruption of local production, Nestlé adapted by importing Nescafé products from abroad and temporarily outsourcing production to other domestic manufacturers to mitigate shortages in the market.
The company emphasized that these measures are only temporary and reiterated its clear intention to resume full-scale Nescafé production in Thailand. Currently, production is sourced from Nestlé (Thai) Ltd. and other partners in Thailand and abroad.
The Nestlé Thailand representative also pointed out that after the contract termination, QCP’s factory will no longer receive production orders from Nestlé, resulting in a complete halt of Nescafé production at this facility.
To compensate for possible shortages, Nestlé has temporarily resorted to other local producers and imports from countries such as Vietnam and Malaysia. Current production and supply sources include Nestlé (Thai) Ltd, Benjapandpong Co, Ltd, Nestlé Vietnam Ltd, Nestlé Manufacturing (Malaysia) Sdn. Bhd. and Toyo Seikan (Thailand) Co, Ltd.
Currently, imported Nescafé products account for a larger share of supply than domestic production, as the former main manufacturer is no longer active. However, Nestlé reiterated that this is only a short-term adjustment and that the long-term plan to produce Nescafé in Thailand remains unchanged.
Risk of $2M Daily Revenue Loss Due to Market Shortages
Currently, the market for instant coffee and 3-in-1 coffee in Thailand is estimated at around 686.5 million dollars (23 billion baht) from April 2024 to March 2025. Nescafé is still the market leader and one of Nestlé’s top-selling brands. A shortage of Nescafé products could result in a loss of sales of around 2 million dollars (70 million baht) per day.
Nestlé also emphasized its continued support for Thai farmers who produce Robusta coffee beans, the main ingredient in Nescafé. Nestlé is the largest buyer of Robusta beans in Thailand, accounting for over 50% of the country’s total production, and has been running sustainable farming programs for over 40 years.
Although the Central Intellectual Property and International Trade Court has ruled that Nestlé has the right to operate the Nescafé business as usual, the legal disputes with the Mahagitsiri family continue. The Civil Court in Min Buri is expected to hold a hearing on June 20, 2025 to determine the jurisdiction of the case.
Nestlé reiterated that it will continue to conduct all business in accordance with legal procedures and respect the court’s decisions while upholding the principles of good corporate governance and transparency in its business practices in Thailand.
Regarding the trademark dispute, the company clarified that Nestlé itself directly manages all production and product lines and that the dispute has no impact on its operations or product availability in the domestic market.
Nestlé’s three production facilities in Thailand continue to operate normally. The company remains committed to long-term investment and development in Thailand, as well as sustainable support for Thai farmers.
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