Alt-dairy giant Oatly wins UK court battle over “milk” label on packaging

21 Dec 2023 --- Oatly, the leading Swedish plant-based milk brand, has prevailed in a four-year court battle against Dairy UK, the representative of the British dairy industry. The UK High Court ruling permits Oatly to utilize the term “milk” on its packaging, specifically endorsing the slogan “Post Milk Generation” on its food and drink products. 

The legal battle began with Oatly’s 2019 trademark for Post Milk Generation, which Dairy UK contested, arguing it violated pre-Brexit European Court regulations restricting “milk” in non-dairy product marketing. The heart of the dispute was whether Oatly’s use of milk on oat-based products was legally permissible — Dairy UK argued that the term could not be used “in relation to products that are not mammary secretions.”

High Court Judge Richard Smith rejected Dairy UK’s claim, emphasizing that Oatly’s trademark did not imply dairy-based products. In the ruling, the slogan was clarified to be pointed toward the consumers who do not consume dairy milk.

“We’re pleased the appeal to the Intellectual Property Office was approved and that the Post Milk Generation is alive and well,” Bryan Carroll, general manager at Oatly UK & Ireland, shares in a media statement.

The legal battle began with Oatly’s 2019 trademark for Post Milk Generation, which Dairy UK contested.“Our mission is to make it easier for people to live healthier lives without recklessly taxing the planet’s resources, and we will continue to challenge rulings and legislation such as this to seek a more level playing field for plant-based products.”

Dairy UK has been contacted for a comment.

Industry implications 
The legal precedent sets the stage for plant-based brands facing food labeling challenges. Furthermore, the ruling secures Oatly’s right to the contested slogan and establishes a legal framework acknowledging the legitimacy of plant-based alternatives.

Earlier this year, concerns grew over potential UK government restrictions on dairy-like terms for plant-based alternatives, such as “milk” and “butter.” ProVeg International, a plant-based advocacy group, challenged what they termed “outrageous and unnecessary censorship,” while UK officials argued it would clarify labeling and reduce consumer confusion.

Similar concerns were noted in the US, where the FDA was reportedly considering a ban on the term “milk” on plant-based offerings. Meanwhile, the Alternative Proteins Association called for “common sense” food labeling in plant-based disputes. 

By Radhika Sikaria