Nestlé Issues Latest Statement: Mahakij Family No Longer Has Rights to Produce Nescafé
Singapore's High Court upheld Nestlé's termination of its joint venture with the Mahakij family's QCP company, ending their rights to produce Nescafé in Thailand as of December 31, 2024.
Nestlé has issued a statement confirming that Singapore's High Court upheld an international arbitration panel's ruling that the termination of its joint venture agreement with QCP, the company owned by the Mahakij family, was legally valid. On May 21, 2025, Nestlé announced that the Singapore High Court delivered its judgment on March 4, 2025, affirming the international arbitration tribunal's decision and confirming that the complete termination of the QCP agreement was legally valid according to the relevant terms. Nestlé continues to drive Nescafé's success through good governance practices, product innovation to meet consumer needs, and ongoing support for Thai farmers. Nescafé remains Thailand's most popular coffee brand and one of the most trusted brands among Thai consumers, maintained through consistent good governance, commitment to developing high-quality coffee products in new formats to serve Thai consumers, and continued support for Thai coffee farmers as a major purchaser of domestically-grown coffee beans for many consecutive years. Historically, Nescafé products were manufactured in Thailand by Quality Coffee Products Limited (QCP), a 50/50 joint venture between Nestlé and the Mahakij family. Under this joint venture agreement, Nestlé held management authority over QCP's operations, including production, distribution, and marketing of Nescafé products, with all technology and intellectual property used in Nescafé manufacturing belonging to Nestlé. When the joint venture agreement terminated on December 31, 2024, QCP lost the right to manufacture Nescafé products. The termination case was submitted to an international arbitration tribunal for investigation. On December 20, 2024, the international arbitration tribunal ruled that the complete termination of the agreement was legally valid under the relevant terms. The opposing shareholder's subsequent petition to Singapore courts was also entirely dismissed. The Singapore High Court's judgment on March 4, 2025 upheld the arbitration tribunal's decision, definitively confirming the lawful termination of the QCP agreement. The other QCP shareholder received notice of the court's judgment, and litigation costs have been settled according to the court's order. Regarding the civil case filed by Prasuth Mahakij and his family against Nestlé and affiliated companies in Thailand, the Court of Appeal's president has ordered the case transferred to the Intellectual Property and International Trade Court, which has direct jurisdiction. The case is currently under consideration. Nestlé remains committed to good governance principles in business operations, strictly complies with laws, and fully cooperates with relevant government agencies and justice sector bodies. These principles are core to Nestlé's business conduct worldwide and form the foundation of the trust earned from consumers, business partners, employees, and stakeholders across the globe. Nestlé has operated in Thailand for over 130 years and remains committed to conducting business here for the benefit of consumers, employees, farmers working with us, business partners, and will continue to invest in Thailand.