UK Court Blocks Oatly's Use of 'Milk' in Branding, Backing Big Dairy
Source: DairyNews.today
A UK appellate court has barred Oatly and other plant-based brands from using dairy-associated terms like "milk," marking a significant win for the traditional dairy industry. The decision reverses an earlier High Court ruling and reinforces regulations that restrict the term to products derived from animal milk.
Court Upholds Dairy Definitions
The Court of Appeal’s ruling reaffirms that terms like "milk" are legally reserved for "the normal mammary secretion obtained from one or more milkings without either addition thereto or extraction therefrom." This aligns with the European Union’s 2013 regulation on dairy terminology, which remains influential in UK trademark law despite Brexit.
The case arose from Oatly’s attempt to trademark the slogan “Post Milk Generation” in 2019. Dairy UK, representing the dairy industry, argued the phrase violated labeling rules and could mislead consumers. Although the UK Intellectual Property Office (IPO) initially rejected the trademark for food and beverages, the High Court later ruled in Oatly’s favor. This latest decision reinstates the IPO's original stance, barring the slogan's use on oat-based drinks.
Industry Divided on Ruling
The verdict has polarized opinion between traditional dairy advocates and proponents of plant-based alternatives.
“This decision is a victory for the integrity of dairy terminology,” said Judith Bryans, CEO of Dairy UK. “Protecting consumers from potential confusion ensures a level playing field and supports the hard work of dairy farmers.”
Oatly, however, criticized the ruling as a step backward. “This judgment benefits Big Dairy at the expense of consumer choice and sustainability,” said Bryan Carroll, General Manager for Oatly UK & Ireland. “We are not calling our product milk but signaling we are beyond milk. The ruling is out of touch with the direction consumers are moving.”
Marisa Heath, CEO of the Plant-Based Food Alliance, echoed Oatly’s concerns. “This decision prioritizes traditional industries over innovation and hampers consumer understanding of sustainable alternatives. The term 'dairy designation' is being over-applied.”
Tightening Rules Globally
The ruling adds momentum to a global trend of restricting plant-based food labeling. The UK may soon follow countries like France and South Africa in imposing stricter limits, potentially banning terms like “not milk,” “mylk,” or “yoghurt-style.”
In the U.S., several states have passed laws prohibiting terms such as “almond milk” or “veggie burger,” citing concerns about misleading consumers. Similarly, France attempted to outlaw meat-related terms like “vegan sausage,” but the European Court of Justice (ECJ) blocked the move, stating that clear ingredient labeling was sufficient to avoid confusion.
Critics argue these measures prioritize legacy industries over sustainability. “Stifling competition through legal action delays progress toward climate-friendly diets,” Carroll said.
Implications for the Plant-Based Sector
For Oatly and other plant-based brands, the ruling raises challenges in communicating their products’ identity within a restrictive regulatory framework. While Oatly has hinted at a potential appeal to the Supreme Court, the judgment sets a legal precedent that could embolden traditional dairy and meat sectors to push for stricter labeling rules globally.
Heath called for a broader focus on sustainability: “This is a distraction. Instead of fighting over terms, we should focus on producing better, sustainable food to address climate and health challenges.”
The decision underscores the regulatory hurdles facing the growing plant-based industry as it seeks to balance innovation, consumer clarity, and legal constraints. For now, the UK’s ruling reinforces traditional definitions, leaving plant-based producers to find new ways to market their products.
The Court of Appeal’s ruling reaffirms that terms like "milk" are legally reserved for "the normal mammary secretion obtained from one or more milkings without either addition thereto or extraction therefrom." This aligns with the European Union’s 2013 regulation on dairy terminology, which remains influential in UK trademark law despite Brexit.
The case arose from Oatly’s attempt to trademark the slogan “Post Milk Generation” in 2019. Dairy UK, representing the dairy industry, argued the phrase violated labeling rules and could mislead consumers. Although the UK Intellectual Property Office (IPO) initially rejected the trademark for food and beverages, the High Court later ruled in Oatly’s favor. This latest decision reinstates the IPO's original stance, barring the slogan's use on oat-based drinks.
Industry Divided on Ruling
The verdict has polarized opinion between traditional dairy advocates and proponents of plant-based alternatives.
“This decision is a victory for the integrity of dairy terminology,” said Judith Bryans, CEO of Dairy UK. “Protecting consumers from potential confusion ensures a level playing field and supports the hard work of dairy farmers.”
Oatly, however, criticized the ruling as a step backward. “This judgment benefits Big Dairy at the expense of consumer choice and sustainability,” said Bryan Carroll, General Manager for Oatly UK & Ireland. “We are not calling our product milk but signaling we are beyond milk. The ruling is out of touch with the direction consumers are moving.”
Marisa Heath, CEO of the Plant-Based Food Alliance, echoed Oatly’s concerns. “This decision prioritizes traditional industries over innovation and hampers consumer understanding of sustainable alternatives. The term 'dairy designation' is being over-applied.”
Tightening Rules Globally
The ruling adds momentum to a global trend of restricting plant-based food labeling. The UK may soon follow countries like France and South Africa in imposing stricter limits, potentially banning terms like “not milk,” “mylk,” or “yoghurt-style.”
In the U.S., several states have passed laws prohibiting terms such as “almond milk” or “veggie burger,” citing concerns about misleading consumers. Similarly, France attempted to outlaw meat-related terms like “vegan sausage,” but the European Court of Justice (ECJ) blocked the move, stating that clear ingredient labeling was sufficient to avoid confusion.
Critics argue these measures prioritize legacy industries over sustainability. “Stifling competition through legal action delays progress toward climate-friendly diets,” Carroll said.
Implications for the Plant-Based Sector
For Oatly and other plant-based brands, the ruling raises challenges in communicating their products’ identity within a restrictive regulatory framework. While Oatly has hinted at a potential appeal to the Supreme Court, the judgment sets a legal precedent that could embolden traditional dairy and meat sectors to push for stricter labeling rules globally.
Heath called for a broader focus on sustainability: “This is a distraction. Instead of fighting over terms, we should focus on producing better, sustainable food to address climate and health challenges.”
The decision underscores the regulatory hurdles facing the growing plant-based industry as it seeks to balance innovation, consumer clarity, and legal constraints. For now, the UK’s ruling reinforces traditional definitions, leaving plant-based producers to find new ways to market their products.
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