UK – UK court has ruled that plant-based companies, including Oatly, cannot use the term “milk” on their product labels, marking a substantial victory for the traditional dairy industry.
This decision comes a year after Oatly had successfully defended its right to use “milk” in marketing, highlighting ongoing tensions between plant-based and dairy sectors over product labeling.
According to the Court of Appeal in London, Oatly’s use of the slogan “Post Milk Generation” on packaging infringes British trademark laws and a 2013 European Union regulation that defines “milk” strictly as a product derived from mammalian secretion.
The EU regulation specifies that milk must come exclusively from animals and cannot be applied to plant-based alternatives.
As reported by the BBC, the ruling reflects a broader trend in Europe, where non-dairy products face stricter labeling regulations than their meat analog counterparts.
Plant-based meat products are allowed to use terms such as “sausage” or “burger,” but dairy-related terms remain tightly controlled.
Bryan Carroll, Oatly’s general manager for the UK and Ireland, expressed disappointment, stating, “This ruling overturns the common sense we saw from the High Court earlier this year when they ruled in our favor. This benefits Big Dairy and Big Dairy alone.”
He emphasized that the decision complicates the labeling of dairy alternatives, potentially confusing consumers.
The case has roots stretching back five years when Oatly sought to trademark “Post Milk Generation” with the UK Intellectual Property Office (IPO).
Dairy UK, representing milk producers, opposed the application, arguing it violated EU regulations protecting dairy-related terms. In January 2023, the IPO ruled in favor of Oatly for non-food items like T-shirts but restricted food and drink labels.
After Oatly’s initial appeal success in December 2023, the Court of Appeal’s recent decision aligns with the IPO’s original stance.
Justice Richard Arnold argued that the phrase does not clearly describe any characteristic of oat-based products and may mislead consumers about its non-dairy nature.
The judges did not address whether terms like “milk-free” could be permissible, leaving some questions unanswered.
Judith Bryans, CEO of Dairy UK, welcomed the ruling, noting, “This unanimous decision clarifies the legal protection of dairy terms. ‘Milk’ is reserved for dairy milk, except in defined circumstances.”
The decision has sparked debate within the plant-based sector. Marisa Heath, CEO of the Plant-Based Food Alliance, criticized the ruling, arguing it doesn’t serve consumer interests.
“Oatly isn’t calling themselves milk; they’re indicating a shift beyond milk. This broad interpretation of ‘dairy designation’ is unnecessary.”
Oatly maintains that the ruling hampers efforts to promote sustainable diets. Carroll accused Big Dairy of using legal maneuvers to stifle competition, stating, “This creates an uneven playing field and delays progress toward sustainable food systems. We are considering our options.”
This ruling comes amid broader regulatory discussions in the UK. The Food Standards Information Focus Group has proposed extending restrictions to ban terms like “cheeze,” “mylk,” and “yoghurt-style” from plant-based labels.
Globally, similar battles continue; Turkey recently prohibited plant-based products from using terms implying dairy or meat likeness, reflecting ongoing challenges for the alternative food industry.
Consumer studies suggest these regulations may be unfounded. A 2022 survey indicated that only 17% of Brits were confused about plant-based products containing dairy, while a 2020 study found that omitting animal-related words could create more confusion.
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