Oatly, the renowned Swedish producer of oat-based beverages, has encountered a significant legal setback in its ongoing battle with the dairy industry regarding the use of the term “milk.” The UK Supreme Court has ruled that the company cannot trademark or utilise the phrase “post-milk generation,” a decision that highlights the contentious relationship between traditional dairy producers and plant-based alternatives.
Legal Background and Court Rulings
The dispute began in 2021 when Oatly sought to trademark its slogan “post-milk generation” in the UK. This move faced strong opposition from Dairy UK, the representative body for British dairy farmers. Dairy UK argued that the term “milk” should be reserved solely for products derived from animals, asserting that allowing Oatly to use the term could mislead consumers regarding the nature of its products.
Following a series of legal challenges, the Supreme Court affirmed the stance of Dairy UK, stating that the term could create confusion about whether Oatly’s offerings are entirely devoid of milk or contain minimal amounts. This ruling followed earlier decisions from both the Intellectual Property Office (IPO) and the High Court, which had initially sided with Oatly, only for the Court of Appeal in December 2024 to reinforce the restriction on non-dairy products using the term “milk.”
Industry Responses
Bryan Carroll, Oatly’s UK and Ireland general manager, expressed disappointment, arguing that the ruling serves to hinder competition and does not reflect the interests of the British public. He stated, “This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy.” Despite this setback, Oatly remains allowed to sell merchandise, such as t-shirts featuring the slogan, which were produced prior to this legal dispute.
Judith Bryans, the CEO of Dairy UK, welcomed the Supreme Court’s decision, emphasising that it preserves the integrity of dairy terminology for consumers. She remarked, “This ruling helps ensure that long-established dairy terms continue to carry clear meaning for consumers,” reinforcing the idea that the traditional dairy sector should maintain its established terminology.
Broader Implications for Plant-Based Products
The legal landscape regarding food terminology is evolving. Last year, the European Parliament voted to prohibit the use of terms like “oat milk” and “veggie burger,” though this ban will require further endorsement from the European Commission and member states before it is enacted. Farmers argue that terms used to describe plant-based alternatives mislead consumers and threaten the dairy industry, while environmental advocates caution that such regulations could undermine sustainability efforts.
Richard May, a partner at law firm Osborne Clarke, commented on the implications of the Supreme Court ruling, stating, “It confirms that, even post-Brexit, the UK will continue to take a strict approach to the use of protected dairy terms, closely aligned with the EU regime.” He explained that if a product is not derived from animal milk, it should not be marketed with terminology reserved for dairy products, which will likely compel companies like Oatly to restrict their use of “dairy-free” claims to factual descriptions rather than promotional branding.
Why it Matters
This ruling is a pivotal moment in the ongoing conflict between the dairy industry and the burgeoning plant-based sector. As consumers increasingly seek alternatives to traditional dairy products, the legal definitions and marketing practices surrounding these items will significantly shape the future of food marketing and consumer choice. The Supreme Court’s decision not only sets a precedent for how plant-based products are labelled but also underscores the broader tension between innovation in food production and the protection of established agricultural practices.
