Highlights
- Supreme Court upholds ban on Oatly describing products as 'milk' in unanimous ruling.
- Vegan food companies must now use terms like 'oat drink' or 'plant-based drink' instead.
- Ruling aligns Britain with EU crackdown on plant-based food labelling.
The Wednesday judgment centred on Oatly's 2021 registration of "post milk generation" as a trademark, which Dairy UK challenged as violating laws preventing non-animal dairy products from using terms such as "milk" and "cheese".
The Supreme Court unanimously ruled the term "milk" described a food or drink and did not qualify for exceptions allowing terminology describing a product's "characteristic quality", stating the trademark instead described targeted consumers.
Legal experts confirmed vegan food companies will now require alternative terminology in marketing and packaging.
Richard May from law firm Osborne Clarke told The Telegraph "In practical terms, terminology such as 'oat milk' or 'plant-based cheese' now carries heightened legal risk in the UK market.
Marketing teams will need to ensure that product names and campaign messaging do not stray into protected territory."
The Intellectual Property Office initially banned the trademark for oat-based products.
Oatly successfully appealed to the High Court, but the Court of Appeal reinstated the original ruling, prompting Oatly's Supreme Court appeal.
Industry faces changes
The judgment suggests Britain is aligning with European Union efforts in restricting plant-based food labelling.
Following years of Brussels debate, the EU is reviving plans to ban meat-related terms including "burger", "steak", and "sausage" on vegan labels. Several US states have attempted similar legislation amid shopper confusion concerns.
The ruling could force vegan producers to rebrand or modify marketing slogans. Plant-based industry supporters argue the ban represents a victory for "big dairy" that undermines consumer choice and sustainability.
Oatly previously accused the court of lacking "common sense" over the dispute, arguing decisions would complicate labelling and locating dairy alternatives.
Both Oatly and Dairy UK have been contacted for comment.
