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

Plant-based drink maker Oatly has lost a long-running legal battle over its use of the word "milk" in its marketing.

The Swedish company tried to trademark the slogan "post-milk generation" in the UK in 2021 but Dairy UK, the representative body for British dairy farmers, objected.

Following rulings in several courts, the UK Supreme Court on Wednesday said Oatly could neither trademark nor use the phrase "post-milk generation".

The long-running dispute has centred on Dairy UK's argument that, under trademark law, the term "milk" can only be used to refer to products that come from an animal.

The Supreme Court ruled the phrase "post-milk generation" could confuse people over whether Oatly's products are completely milk-free or merely have a low milk content.

Oatly's general manager for the UK and Ireland, Bryan Carroll, said the case was "a way to stifle competition and is not in the interests of the British public".

"This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy."

Because the relevant law only applies to food products, Oatly is still allowed to sell t-shirts bearing the slogan "post-milk generation" which it had made before the ensuing legal battle.

In November 2021, Dairy UK appealed to the Intellectual Property Office (IPO) not to let the company trademark the phrase. The IPO rejected Oatly's application to trademark the phrase.

The firm took the decision to the High Court, which ruled that the IPO was wrong to conclude that consumers would be confused by the phrase.

But the Court of Appeal ruled in December 2024 that the term "milk" can only be used to describe animal products.

Following the ruling, Judith Bryans, chief executive of Dairy UK said the body was "delighted".

The ruling, she said, "helps ensure that long-established dairy terms continue to carry clear meaning for consumers".

Last year, the EU parliament voted to ban the use of terms such as "oat milk" and "veggie burger" — but such a ban will not come into force until it is backed by the European Commission and all 27 member states.

European farmers have argued such terms mislead consumers and threaten their industry.

Environmentalists have said that the ban will harm sustainability efforts and is an overreach by the meat and dairy industries.

Richard May, partner at law firm Osborne Clarke, said of the Supreme Court ruling: "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'."

Companies like Oatly will now likely limit their use of terms like "dairy-free" to "factual" information, rather than branding and marketing, May said.