Swedish drinks group Oatly has been barred from using the word “milk” in its marketing campaigns after a unanimous ruling by the Supreme Court.
The decision, that came on Wednesday (Feb 11), marks the latest stage in a long-running legal dispute between the plant-based drinks brand and trade body Dairy UK, which challenged Oatly’s trademarking of dairy-associated terminology.
Following rulings in several courts, the UK Supreme Court said Oatly could neither trademark nor use the phrase "post-milk generation".
Oatly first applied to register the phrase “Post Milk Generation” with the UK Intellectual Property Office (IPO) in 2019, securing registration in 2021. Dairy UK objected, arguing that the use of the word “milk” breached regulations reserving certain terms – including milk, wine and olive oil – exclusively for defined agricultural products.
Under UK and retained EU rules, “milk” is legally defined as a product of animal origin.
In 2023, following Dairy UK’s objection, the IPO ruled that Oatly’s use of the term was “deceptive”. Although Oatly successfully appealed that decision later that year, the Court of Appeal overturned the ruling, prompting the company to escalate the case to the Supreme Court. The Supreme Court has now ruled that Oatly cannot trademark or use the slogan in the UK.
Commenting on the judgment, Dairy UK chief executive Judith Bryans said the ruling provides clarity on how dairy terms can and cannot be used in branding and marketing. She added that it ensures long-established dairy terms retain a clear meaning for consumers, while allowing alternative descriptors where permitted by law.
Oatly, however, criticised the outcome. Bryan Carroll, general manager for Oatly UK & Ireland, described the decision as anti-competitive and said it created “an uneven playing field” that benefits traditional dairy producers.
The regulations restricting dairy terminology also extend to terms derived from milk-based products such as cream, butter, cheese and yoghurt.
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'," BBC quoted May as saying.
Companies like Oatly will now likely limit their use of terms like "dairy-free" to "factual" information, rather than branding and marketing, May said.