– Oatly AB, the Swedish manufacturer of oat-based drinks, has suffered a definitive legal setback in its long-running dispute with the British dairy industry. The UK Supreme Court today unanimously ruled against Oatly’s use of the term “milk” to describe its plant-based products, effectively ending the company’s attempt to trademark the slogan “Post Milk Generation.”
The case, brought by Dairy UK, the trade association representing British dairy producers, centered on whether the term “milk” could be legitimately applied to non-dairy alternatives. While Oatly initially secured a victory in the High Court in 2023, that ruling was overturned by the Court of Appeal in 2024, leading to the final appeal before the Supreme Court last December.
Oatly’s legal team argued that the “Post Milk Generation” trademark explicitly conveyed the absence of dairy milk, appealing to a consumer base increasingly concerned about the environmental and ethical implications of traditional dairy farming. However, the Supreme Court sided with Dairy UK, finding that the trademark was “far from clear” in describing any characteristic of the oat-based products.
According to the ruling, the slogan focuses on describing the targeted consumers – specifically, younger generations – rather than the product itself. The justices stated that, even if the slogan was intended to highlight the product’s milk-free nature, it did so in an “oblique and obscure way,” failing to meet the standard of “clearly” describing a product characteristic.
“We consider that it is far from clear that that trademark is describing any characteristic of the contested products,” the court’s judgment read. “Rather, on its face, it is focused on describing the targeted consumers… Insofar as it is describing a characteristic quality of the product, it is doing so in an oblique and obscure way.”
The decision underscores the legal limitations surrounding the use of traditional food terminology for plant-based alternatives. Regulations in both the European Union and the United Kingdom restrict the use of terms like “milk,” “wine,” and “olive oil” to the genuine products they describe – derived from animals, grapes, or olives, respectively. While exceptions exist for descriptive uses, the court found Oatly’s application did not qualify.
Oatly had first filed a trademark application for “Post Milk Generation” with the UK’s Intellectual Property Office in 2019, which was officially registered in 2021. The company argued that using “milk” in a trademark did not violate regulations if it wasn’t used in a descriptive manner. However, the Supreme Court disagreed, stating that the connection to a food product triggered the application of the rule.
The ruling allows Dairy UK to prevent Oatly from using “Post Milk Generation” as a trademark for its oat-based food and drink products in the UK. However, Oatly retains the right to use the slogan for non-food merchandise, where dairy regulations do not apply.
Laurie Bray, a senior associate and trademark attorney at Withers & Rogers, described the outcome as significant. “It has taken the highest court in the land to decide once and for all whether a plant-based milk alternative can be branded as ‘milk’ and marketed as such,” Bray said. “And the outcome is not what Oatly was hoping for.”
Oatly has expressed its disappointment with the ruling, characterizing it as anti-competitive and beneficial solely to established dairy interests – a sentiment echoed by some analysts who view the decision as a victory for “Big Dairy.” The company contends that the ruling will create confusion among consumers and hinder the growth of the plant-based sector.
The implications of this ruling extend beyond Oatly. It sets a precedent for other plant-based food and beverage companies seeking to use traditional dairy terminology in their branding and marketing efforts. The decision signals a stricter interpretation of existing regulations and a greater willingness by courts to protect the interests of established agricultural industries.
While Oatly can continue to market its products as “oat drinks” or “oat-based beverages,” the loss of the “Post Milk Generation” trademark represents a significant branding challenge. The company will need to adapt its marketing strategies to navigate the new legal landscape and maintain its position in the increasingly competitive plant-based market.
Dairy UK welcomed the Supreme Court’s decision, stating it protects the integrity of dairy terminology and prevents consumer confusion. The organization argues that the term “milk” should be reserved for products derived from animals, ensuring consumers understand the origin and nutritional content of their food choices.
