Oatly's Legal Battle Over 'Milk' Term Ends in Supreme Court Defeat
Plant-based drink manufacturer Oatly has been unsuccessful in its prolonged legal dispute regarding the use of the word "milk" in its marketing materials.
The Swedish company sought to trademark the slogan "post-milk generation" in the United Kingdom in 2021. However, Dairy UK, the organization representing British dairy farmers, opposed the trademark application.
After multiple court decisions, the UK Supreme Court ruled on Wednesday that Oatly is prohibited from trademarking or using the phrase "post-milk generation." The core of the dispute was Dairy UK's argument that, according to trademark law, the term "milk" is exclusively applicable to products derived from animals.
The Supreme Court determined that the phrase "post-milk generation" could potentially mislead consumers into believing that Oatly's products are either entirely free of milk or contain only a small amount of milk.
Chronology of Legal Proceedings
In November 2021, Dairy UK lodged an appeal with the Intellectual Property Office (IPO) to prevent Oatly from trademarking the phrase. The IPO sided with Dairy UK and rejected Oatly's trademark application.
Oatly challenged this decision in the High Court, which ruled that the IPO had erred in concluding that consumers would be confused by the phrase.
Subsequently, in December 2024, the Court of Appeal reversed the High Court's decision, affirming that the term "milk" is reserved exclusively for animal-derived products.
Reactions and Industry Impact
Following the Supreme Court's ruling, Judith Bryans, Chief Executive of Dairy UK, expressed satisfaction with the outcome.
"We are delighted with the ruling," Bryans said. "It helps ensure that long-established dairy terms continue to carry clear meaning for consumers."
Oatly was contacted for comment but did not provide a statement.
Context Within Broader Regulatory Landscape
Last year, the European Parliament voted to prohibit the use of terms such as "oat milk" and "veggie burger." However, this ban will not be implemented until it receives approval from the European Commission and all 27 member states.
European farmers have contended that such terminology misleads consumers and poses a threat to their industry. Conversely, environmental advocates argue that the ban undermines sustainability initiatives and represents an overextension by the meat and dairy sectors.
Expert Commentary
Richard May, a partner at the law firm Osborne Clarke, commented on the Supreme Court's decision:
"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.
"The key principle is straightforward: if a product is not derived from animal milk, it cannot be marketed using reserved dairy designations such as 'milk' or 'cheese'."
May further noted that companies like Oatly will likely restrict their use of terms such as "dairy-free" to factual descriptions rather than employing them in branding or marketing strategies.
