Nestlé Thailand has sent a letter to its business partners informing them they can resume sales and distribution of instant coffee products under the Nescafé brand in Thailand.
In an update on Saturday the company said the Central Intellectual Property and International Trade Court has ruled that Nestlé holds exclusive rights to use the “Nescafé” trademarks in the country.
The letter, signed by Cruawan Varunpaichit, Executive Business Manager of Nestlé Professional Thailand, said the company can now resume the distribution of its instant coffee products.
The update comes ahead of Thursday's hearing at the Min Buri Civil Court concerning Nescafé products.
Nescafé is produced locally through a joint venture with the Mahagitsiri family called Quality Coffee Products Ltd (QCP).
However, the joint venture agreement ended on Dec 31, 2024 and the shareholders have been unable to agree on the future direction of QCP.
Prayudh Mahagitsiri, a shareholder of QCP, filed a petition with the Min Buri Civil Court seeking an injunction.
The court issued an order temporarily preventing Nestlé from manufacturing, outsourcing production, distributing, or importing instant coffee products using the Nescafé trademark in Thailand from April 3 onward.
On April 11 Nestlé lodged an appeal against the injunction on grounds that business partners in the supply chain such as coffee bean farmers and packaging suppliers are affected by the court order.
The court has scheduled a hearing on April 17 to decide whether the injunction will be lifted.
Following the injunction, a source in the industry said that if the court order is lifted soon, allowing Nestlé to resume normal distribution, the supply shortage may be minimal.
However, if the court rules against Nestlé and the injunction remains in effect, a prolonged shortage could occur since Nescafé holds a significant share of Thailand's coffee market.
