Nestle vs Mahagij Siri Coffee Company Dispute

Thansettakij•Economy•3d ago

Reader Briefing

The Mahagij Siri family and Nestlé are engaged in extensive legal disputes in Thailand and internationally over a joint venture coffee company.

•Nestlé S.A. terminated a joint venture agreement with effect at the end of 2024.
•The International Chamber of Commerce (ICC) ruled in favor of Nestlé on December 20, 2024, regarding the contract termination.
•The Mahagij Siri family has filed a lawsuit against Nestlé for 100,000 million baht in the Central Intellectual Property and International Trade Court.
•EY provided a disclaimer of opinion on the 2023 financial statements due to disagreements over the disclosure of distribution fees and marketing expenses.

Overview

•A joint venture agreement began on January 1, 1990, with the latest renewal period ending in late 2024.
•Nestlé S.A. issued a letter to terminate the joint venture and related agreements on December 9, 2022, effective at the end of 2024.
•The High Court of Singapore upheld an ICC ruling in favor of Nestlé, and the case reached a final conclusion in May 2026.
•Chalermchai Mahagij Siri, Suwimon Mahagij Siri, and Prayuth Mahagij Siri filed a lawsuit against Nestlé for 100,000 million baht on April 3, 2025.
•The Central Intellectual Property and International Trade Court is scheduled to read the judgment for the 100,000 million baht case on December 21, 2026, at 09:00.
•If the joint venture and related agreements end, QCP cannot use the NESCAFÉ trademark or intellectual property of Nestlé.
•EY did not express an opinion on the 2023 financial statements because the Mahagij Siri side wanted to disclose distribution and marketing fees while Nestlé S.A. insisted they were standard transfer pricing.

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Key Entities

Organization

Nestlé S.A.(เนสท์เล่ เอส.เอ.)ℹ️

The parent company in Switzerland and a party to the joint venture dispute.

Mahagij Siri Family(ตระกูลมหากิจศิริ)

The shareholders opposing Nestlé S.A. in the joint venture conflict.

QCP

The joint venture coffee company that produces and sells NESCAFÉ products.

The auditor that declined to express an opinion on the 2023 financial statements.

International Chamber of Commerce (ICC)(คณะอนุญาโตตุลาการระหว่างประเทศ (ICC))

The international arbitration body that ruled the contract termination was lawful.

High Court of Singapore(ศาลสูงสิงคโปร์)ℹ️

The court that upheld the ICC ruling and dismissed the Mahagij Siri side's petition.

Central Intellectual Property and International Trade Court(ศาลทรัพย์สินทางปัญญาและการค้าระหว่างประเทศกลาง)

The Thai court handling the 100,000 million baht lawsuit and the executive misconduct case.

Nestlé (Thai) Co., Ltd.(บริษัท เนสท์เล่ (ไทย))

A defendant in the 100,000 million baht lawsuit.

Société des Produits Nestlé S.A.(โซซิเอเต้ เดส์ โปรดุยต์ส เนสท์เล่ เอส.เอ.)

A defendant in the 100,000 million baht lawsuit.

Nestlé ROAS (Thailand) Co., Ltd.(บริษัท เนสท์เล่ อาร์โอเอซ (ประเทศไทย))

A defendant in the 100,000 million baht lawsuit.

Nestlé Trading (Thailand) Co., Ltd.(บริษัท เนสท์เล่เทรดดิ้ง (ประเทศไทย))

A defendant in the 100,000 million baht lawsuit.

Economic Crime Suppression Division (ECD)(กองบังคับการปราบปรามการกระทำความผิดเกี่ยวกับอาชญากรรมทางเศรษฐกิจ (ECD))

The agency where the Mahagij Siri side filed criminal complaints regarding fraud and accounting.

Department of Business Development (DBD)(กรมพัฒนาธุรกิจการค้า (DBD))

The agency asked to investigate accounting irregularities and nominee structures.

Department of Special Investigation (DSI)(กรมสอบสวนคดีพิเศษ (DSI))

The agency requested to accept the case as a special case.

Federation of Accounting Professions(สภาวิชาชีพบัญชี)

The body asked to investigate the ethics of QCP's auditors.

Person

Prayuth Mahagij Siri(นายประยุทธ มหากิจศิริ)

A shareholder holding approximately 3% and a plaintiff in lawsuits against Nestlé.

Chalermchai(นายเฉลิมชัย)ℹ️

The major shareholder of the Mahagij Siri family and a plaintiff in the lawsuit.

Suwimon(นางสุวิมล)

A plaintiff in the 100,000 million baht lawsuit against Nestlé.

Ramon Mendivil Guil(นายรามอน เมนดิวิล กิล)

A defendant in the 100,000 million baht lawsuit.