The High Court of Singapore upheld the international arbitral tribunal ruling that Nestlé's termination of the Quality Coffee Products Ltd (QCP) joint venture agreement was lawful.
According to Nestlé's statement, Nescafé products in Thailand were previously manufactured by QCP, a 50/50 joint venture between Nestlé and the Mahagitsiri family.
Nestlé managed QCP's operations, including manufacturing, sales and marketing of Nescafé products.
The manufacturing technology and intellectual property used in the production process belong to Nestlé.
Following the termination of the joint venture agreement on Dec 31, 2024, QCP no longer has the right to manufacture Nescafé products.
On Dec 20, 2024, the international arbitral tribunal confirmed the lawfulness of the termination under the applicable agreements.
Subsequent applications filed by the QCP shareholder before the Singapore courts were dismissed, with the High Court of Singapore issuing its decision on March 4, 2026, upholding the tribunal's ruling.
The court's decision was acknowledged by the QCP shareholder, and the arbitration costs were settled on April 24 this year.
For the civil cases filed by Prayudh Mahagitsiri and related parties against Nestlé and certain affiliated companies in Thailand, the president of the Court of Appeal for Specialized Cases ordered the cases be transferred to the Intellectual Property and International Trade Court.
The proceedings are ongoing, according to the statement.
