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Shortage of Nescafé instant coffee feared after court halts production

Shortage of Nescafé instant coffee feared after court halts production

14 Sept 11:50 Key points summarised by AI
  • A Thai court issued an injunction halting Nestlé Thailand's production, distribution, and import of Nescafé instant coffee, prompting fears of shortages and price hikes.
  • The injunction was filed by a shareholder of Quality Coffee Products (QCP), Nestlé's former 50:50 joint venture, following Nestlé's termination of their production contract last December.
  • The dispute is part of an ongoing legal battle where Nestlé is seeking to dissolve QCP after a ruling by the International Court of Arbitration.
  • Nestlé announced it will protest the injunction, claiming it was denied an opportunity to defend itself, while expressing concern over potential impacts on small retailers, vendors, and farmers.
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