Oatly loses long-running 'milk' battle with dairy lobby

Oatly loses long-running 'milk' battle with dairy lobby

Swedish plant-based beverage company Oatly has been denied the right to use the term “milk” in its marketing following a protracted legal struggle. The issue revolves around Oatly’s attempt to trademark the phrase “post-milk generation” in the UK back in 2021, a move opposed by Dairy UK, an organization representing British dairy farmers. After a series of court hearings, the UK Supreme Court ruled against Oatly, stating it could neither trademark nor use the contentious phrase.

The case focused on Dairy UK’s contention that, according to trademark legislation, the word “milk” should exclusively refer to products sourced from animals. The Supreme Court concluded that the phrase “post-milk generation” could mislead consumers into thinking Oatly’s products are either free of milk entirely or contain only minimal amounts of it. Bryan Carroll, Oatly’s general manager for the UK and Ireland, criticized the decision, saying it serves to “stifle competition and is not in the interests of the British public.” He added that the ruling “creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy.”

Although the restriction applies strictly to food products, Oatly is still permitted to sell merchandise such as t-shirts bearing the “post-milk generation” slogan that were produced before the legal confrontation began. Initial attempts by Oatly to trademark the phrase faced rejection by the Intellectual Property Office (IPO) in November 2021 due to Dairy UK’s objection. While the High Court originally sided with Oatly, ruling that the IPO had been wrong to assume consumer confusion, a December 2024 Court of Appeal decision overturned that judgment, emphasizing that the term “milk” should be reserved for animal-derived products.

Judith Bryans, the chief executive of Dairy UK, expressed satisfaction with the Supreme Court’s verdict, noting that it “helps ensure that long-established dairy terms continue to carry clear meaning for consumers.” Meanwhile, this legal dispute echoes wider tensions across Europe, where the EU Parliament voted last year to ban the use of terms like “oat milk” and “veggie burger.” However, this ban remains unenforced pending approval by the European Commission and all member states. European farmers argue that such labels mislead consumers and endanger their industry, while environmentalists warn that these restrictions could impede sustainability goals and serve the interests of the meat and dairy sectors.

Legal experts such as Richard May, a partner at Osborne Clarke law firm, highlight that the Supreme Court ruling illustrates how the UK continues to maintain stringent regulations on protected dairy terminology even after Brexit, aligning closely with EU standards. May explained, “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’.” He anticipates companies like Oatly will now focus on using terms like “dairy-free” only as straightforward factual descriptors, rather than as part of their broader branding or marketing strategies

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