UK Supreme Court Rules Against Oatly's Use of "Milk" in Branding

The UK Supreme Court has unanimously ruled that Oatly, a prominent oat drink manufacturer, cannot use the term "milk" to describe its plant-based products. This decision stems from a long-standing legal dispute with Dairy UK, the trade association representing the British dairy industry, over Oatly's trademark "Post Milk Generation." The court found that the use of "milk" in this context violates UK regulations that reserve dairy terminology exclusively for animal-derived products.

Oatly: Lost legal battle will ‘stifle’ plant-based alternativesThe Telegraph - UKUK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brandsThe IndependentSupreme Court bans Oatly from using 'milk' in UK branding battle

The legal battle began when Dairy UK challenged Oatly's trademark registration in 2021, arguing that it contravened Regulation (EU) No. 1308/2013, which protects terms like "milk" and "cheese" for animal products. Initially, the Intellectual Property Office deemed the trademark invalid, but Oatly successfully appealed this decision in the High Court in December 2023. However, the Court of Appeal later overturned this ruling in November 2024, leading Oatly to appeal to the Supreme Court.

The IndependentOatly: Lost legal battle will ‘stifle’ plant-based alternativesThe Telegraph - UKUK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brandsSupreme Court bans Oatly from using 'milk' in UK branding battle

The Supreme Court ruled that the term "milk" was being used as a designation rather than merely as a cultural reference. The justices concluded that the phrase "Post Milk Generation" does not clearly describe a characteristic quality of Oatly's products, which are non-dairy. As a result, the trademark was deemed invalid for oat-based food and drink products, although it remains valid for non-food items.

UK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brandsThe Telegraph - UKThe IndependentOatly: Lost legal battle will ‘stifle’ plant-based alternativesSupreme Court bans Oatly from using 'milk' in UK branding battle

This ruling is significant for the plant-based food industry, as it reinforces the strict regulations surrounding the use of dairy-related terminology. Legal experts indicate that terms like "oat milk" or "plant-based cheese" now carry heightened legal risks in the UK market. Richard May, a partner at Osborne Clarke, emphasized that marketing teams must ensure their product names and messaging do not infringe on protected terminology.

UK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brands

Oatly expressed disappointment with the ruling, stating it creates "unnecessary confusion" and benefits "Big Dairy." Bryan Carroll, general manager for Oatly UK & Ireland, criticized the decision as a means to stifle competition. Conversely, Dairy UK's CEO, Dr. Judith Bryans, welcomed the ruling, asserting it provides clarity on how dairy terms can be used in branding and marketing.

Oatly: Lost legal battle will ‘stifle’ plant-based alternatives

Critics of the ruling, including Oatly, argue that it hampers competition in the plant-based sector and does not reflect consumer preferences for dairy alternatives. Oatly contends that the decision undermines innovation and consumer choice in a rapidly growing market.

The Telegraph - UK

Following the ruling, Oatly plans to continue using the "Post Milk Generation" slogan for merchandise but must adjust its marketing strategies for food products. The decision may also prompt Dairy UK to challenge other Oatly trademarks related to dairy alternatives. As the plant-based market evolves, businesses are advised to use clearly descriptive alternatives like "oat drink" to avoid legal complications.

The Telegraph - UKOatly: Lost legal battle will ‘stifle’ plant-based alternativesSupreme Court bans Oatly from using 'milk' in UK branding battleUK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brandsThe Independent

• “We are deeply disappointed by today’s UK Supreme Court ruling. In our view, prohibiting the trademarking of the slogan ‘Post Milk Generation’ for use on our products in the UK is 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.” — Bryan Carroll, General Manager, Oatly UK & Ireland

UK Supreme Court blocks Oatly’s ‘Post Milk Generation’ trademark in landmark ruling for plant-based brands

• “This ruling is an important decision for the sector as it finally provides clarity on how dairy terms can - and cannot - be used in branding and marketing.” — Dr. Judith Bryans, CEO, Dairy UK

Supreme Court bans Oatly from using 'milk' in UK branding battle

The Supreme Court's decision marks a pivotal moment for the branding of plant-based products in the UK, reinforcing the legal boundaries around dairy terminology amidst a growing demand for alternatives.

Supreme Court bans Oatly from using 'milk' in UK branding battle