UK Supreme Court dairy ruling goes against Oatly
The UK Supreme Court has dismissed an appeal by Swedish oat-drink giant Oatly AB, ruling that its trademark ‘Post Milk Generation’ slogan can’t be used on oat-based food and drink products.
In a closely watched decision in Dairy UK Ltd v Oatly AB, judges backed the dairy trade body, confirming that the use of the word ‘milk’ in the slogan was prohibited under EU law governing protected dairy designations.
Oatly registered the trademark in 2021, positioning the phrase as part of its wider branding. Dairy UK challenged the registration, arguing that EU-derived rules – now part of UK law – reserve terms such as ‘milk’, ‘butter’ and ‘yogurt’ exclusively for dairy products.
The case moved through the Intellectual Property Office, the High Court and the Court of Appeal, before reaching the Supreme Court.
At the heart of the dispute was whether the word ‘milk’ counted as a prohibited ‘designation’. Oatly argued the rule applies only when ‘milk’ is used as the name of a product, not within a broader marketing phrase.
The Supreme Court disagreed stating that ‘designation’ has a wider meaning and covers any use of the word in relation to a product, not just a product name. Because oat drinks are not legally ‘milk’, the use of the term within the trademark breached the regulation.
The judges said the law is not only about preventing consumers from being misled but also about ensuring fair competition in the dairy sector.
Oatly also argued that the phrase should be allowed because it describes a characteristic of its products, namely that they contain no milk. But the Court found the wording too indirect and unclear to qualify for the exemption.
“This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy.”
The ruling means the trademark can’t be used for oat-based food and drink, though it remains valid for non-food items such as clothing.
The decision reinforces the strict legal protection surrounding dairy terminology in the UK and signals continued regulatory pressure on plant-based brands using dairy-related language – even in slogan form.
For the rapidly expanding alt dairy sector, the message is clear: references to ‘milk’ must be either compliant or clearly descriptive, there’s little room for ambiguity.
Commenting on the outcome, Judith Bryans, chief executive of Dairy UK, says: “This is a significant and welcome judgment for the UK dairy industry. The Supreme Court’s decision reinforces the long-established legal protections for dairy terms and ensures that they cannot be used inappropriately in ways that undermine fair competition.”
However, Oatly UK general manager Bryan Carroll expressed disappointment in the decision. “In our view prohibiting the trademarking of the slogan ‘Post Milk Generation’ for use on our products in the UK is a way to stifle competition and is not in the interests of the British public,” he says. “This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy.”