Oatly loses court battle with Dairy UK over ‘Post Milk Generation’ trademark

Swedish oat milk brand, Oatly, has lost a five-year legal battle against Dairy UK, resulting in a ban on using the slogan 'Post Milk Generation' for marketing plant-based products in the UK. The Court of Appeal in London recently ruled that the phrase violates British and EU regulations, which protect dairy-related terms for exclusive use by traditional dairy products.

This decision is expected to impact the broader plant-based industry, as it reinforces restrictions on the use of dairy terminology for non-dairy products.

The dispute began in 2019 when Oatly sought to trademark the slogan 'Post Milk Generation' with the UK Intellectual Property Office (IPO). The oat milk company intended to use the phrase across various products, including food, beverages, and clothing. Dairy UK, representing the interests of dairy producers, opposed the application, arguing that the term 'milk' misleads consumers and violates regulations restricting dairy descriptors to traditional dairy products.

In line with EU Regulation 1308/2013, which prohibits the use of dairy terms like 'milk' for plant-based alternatives, the IPO initially limited Oatly’s trademark use to clothing. In December 2023, Oatly successfully appealed this decision in the High Court, which ruled that Dairy UK’s concerns about consumer confusion were unfounded. However, the Court of Appeal has now reversed that ruling, siding with Dairy UK and reinstating the restrictions.

Bryan Carroll, General Manager for Oatly UK and Ireland, expressed disappointment with the decision, criticizing the dairy industry’s approach. “Be under no illusion that making it harder to label and find dairy alternatives benefits the interest of Big Dairy and Big Dairy alone. Their cynical attempts to stifle the competition through legal action contradict the interest of the British consumer, create an uneven playing field for plant-based products, and worst of all: delay the progress in shifting the public towards more sustainable diets.”

Carroll indicated that Oatly is considering its next steps, reaffirming the company’s commitment to promoting plant-based alternatives and challenging the dominance of traditional dairy.

The Court of Appeal’s decision sets a legal precedent that will affect other plant-based companies marketing products in the UK. Marisa Heath, Chief Executive of the Plant-based Food Alliance UK, argued that the ruling does not align with consumer interests. “The term ‘dairy designation’ clearly has too wide an interpretation, and Oatly are not calling themselves milk – they are saying they are ‘post milk.’ I think this is a waste of time, and we should be focusing on producing better and more sustainable food to tackle the issues facing us globally around climate change and health.”

Jasmijn de Boo, CEO of ProVeg International, added that research indicates consumers are not misled by terms like 'milk' when applied to plant-based products. “Several studies show that consumers are not being misled by the use of the term ‘milk’ for plant-based milks.”

Dairy UK, which led the legal challenge, welcomed the court’s decision. Dr Judith Bryans, Chief Executive of Dairy UK, stated, “This unanimous decision reinstates the Intellectual Property Office’s original decision, which declared the trade mark invalid for oat-based products. This ruling clarifies the legal protection of dairy terms, according to which the term ‘milk’ is reserved for dairy milk, except in defined circumstances.”

Bryans emphasized that the case centered on whether these protections extend to trademarks and confirmed that the Court of Appeal has ruled in favor of their applicability.

The decision raises questions about how plant-based brands can continue to market their products without infringing on dairy terminology. As the demand for dairy alternatives grows, the industry faces ongoing challenges in navigating marketing restrictions while clearly communicating their products’ purpose and appeal.

Oatly’s case underscores the broader tension between traditional dairy producers and plant-based innovators. The ruling may encourage plant-based brands to adopt more creative or neutral branding strategies to avoid legal challenges while maintaining their appeal to consumers seeking sustainable and ethical food choices.

(Main image courtesy of Oatly)