BANGKOK – Nestlé has launched a major lawsuit against Thai businessman Prayudh Mahagitsiri and his son, Chalermchai, seeking 577 million baht (about US$17 million) in damages over Nescafé in Thailand.
The case, filed at the Central Intellectual Property and International Trade Court, follows an eight-day halt in Nescafé sales across Thailand. This disruption came after a temporary court order paused all sales during a heated trademark dispute.
The disagreement traces back to the end of a long-running partnership between Nestlé and the Mahagitsiri family. Their joint company, Quality Coffee Products Co., Ltd. (QCP), began in 1990 with both sides holding equal shares.
Prayudh Mahagitsiri, often called the “Godfather of Nescafé,” played a key role in turning Nescafé into Thailand’s leading coffee label. The partnership broke down when Nestlé pulled out of its agreement with QCP in 2021, a move later supported by a decision from the International Court of Arbitration in December 2024.
On 3 April 2025, Chalermchai Mahagitsiri, who owns 41.8% of QCP, secured a temporary injunction from the Minburi Civil Court. This order stopped Nestlé from making, selling, or importing Nescafé in Thailand. As a result, the supply chain stalled, affecting everyone from farmers and suppliers to shop owners.
After eight days, the Intellectual Property and International Trade Court ruled in favour of Nestlé (Thai) Ltd., confirming its sole rights to the “Nescafé” and “เนสกาแฟ” trademarks and letting the company restart its business.
Nescafe Trademark Dispute
Nestlé claims the Mahagitsiri family’s actions broke trademark laws and hurt a brand that makes up over half of Thailand’s instant coffee sales and 37% of the ready-to-drink coffee market. The company points out its 130-year history in Thailand, with investments topping 22.8 billion baht between 2018 and 2024, showing its support for Thai farmers and local businesses.
The Mahagitsiri family, ranked as Thailand’s 10th richest by Forbes in 2025 with a worth of $2.5 billion, argues that Nestlé’s decision to end the QCP deal was unfair. They believe QCP, which posted revenues of 17.1 billion baht in 2023, should keep producing coffee, possibly under a new label, to keep competition strong in Thailand’s busy coffee market.
Adding to these problems, Prayudh Mahagitsiri, now 80, was recently handed a 24-year prison sentence for corruption linked to illegal land titles in Nakhon Ratchasima’s Sikhiu district.
The investigation centres on the Mountain Creek Golf & Resort project, where Prayudh and his daughter, Ausana, were found guilty of working with officials to increase land holdings by 189 rai. Both have posted bail of 1 million baht each while they appeal, with Prayudh currently receiving care in a prison hospital because of health problems.
Thailand’s coffee industry, now worth over 60 billion baht, has been growing fast due to rising demand. On average, people in Thailand drink 340 cups a year, and instant coffee holds an 84% share of the 34 billion baht market. Nescafé leads the pack, popular both at home and as part of the 24 billion baht ready-to-drink segment.
The ongoing legal fight could change the market, with big retailers like Tang Ngee Soon Superstore warning that more disruptions may cause shortages and open opportunities for rivals.
The next hearing is set for 20 June at the Minburi Civil Court to discuss which court should handle the case. Nestlé says it will keep fighting, and a source revealed the company may build a new production site in Thailand. For now, coffee fans across the country are watching closely as this dispute unfolds.
Sources: Nation Thailand, Thai PBS
