Nestle Reaffirms Compliance in Coffee Business Dispute

Nestle, owner of Nescafe, has updated information about its situation with Quality Coffee Products Limited (QCP), asserting readiness to defend its case and confidence in its legal compliance and corporate governance. On September 14, 2025, Nestle (Thailand) Limited clarified that it has complied fully with all relevant laws and joint venture agreements. International arbitration and Singapore's High Court have ruled in Nestle's favor on all counts contested by the Mahakij family. Although the Mahakij family has filed multiple lawsuits, many have been withdrawn or dismissed by courts. The family has recently filed complaints with police. Nestle is prepared to cooperate continuously with justice authorities and relevant government agencies. The legal and non-legal actions initiated by the Mahakij family have created business uncertainty, disrupted operations, and damaged confidence among foreign investors in Thailand's business environment. Many of the family's cases have been dismissed as having no merit. Nestle is calling on relevant authorities to ensure fair and transparent resolution of shareholder disputes. The company remains committed to delivering high-quality products to consumers and supporting Thailand's sustainable growth, and will proceed with developing a new state-of-the-art coffee production facility that will benefit consumers, Thai coffee farmers, and local communities. At least six cases have been filed in Thai courts initiated by the Mahakij family, with police procedures to follow standard processes. If Nestle is requested to cooperate, it is prepared to do so with justice and government agencies. A case in which Nestle sought nearly 600 million baht in damages based on a temporary protection order from April remains subject to appeal. Nestle reaffirmed: We are confident we have complied with the contract and laws fully, and we deserve fair treatment because this dispute has damaged confidence not only in Nestle but also in other foreign companies. We have just announced nearly 30,000 million baht in additional investment in 2025 to develop a state-of-the-art coffee production facility at the Arayya Industrial Estate in Samut Prakan province, which will produce all major types of Nescafe products, completing in 2027, including instant and canned coffee and a distribution center. The original factory has ceased operations, and we are currently using eight Nestle factories for coffee production, with some contract manufacturing as temporary management, ensuring sufficient product supply over the next two years before the new facility opens. Operations remain strong despite the dispute, with Thailand being a key market for Nestle's coffee.