Supreme Court bans Oatly from using 'milk' in UK branding battle

Oatly has been barred from using the word “milk” to promote its plant-based products in a landmark Supreme Court ruling that could reshape how Britain’s booming dairy alternatives sector markets itself.

The UK’s highest court ruled in favour of trade body Dairy UK, concluding a long-running legal battle with the Swedish drinks manufacturer over its use of dairy-linked terminology.

In a unanimous judgment handed down on Wednesday, justices ruled that Oatly can no longer trademark, or use, the slogan “Post Milk Generation”.

At the centre of the dispute was whether plant-based producers can adopt language traditionally reserved for products derived from animals.

Under UK law — closely aligned with retained EU rules — terms such as “milk” and “cheese” are protected designations for animal-based products. The court’s decision reinforces that position.

Responding to the ruling, Dr Judith Bryans, chief executive of Dairy UK, said the organisation was “delighted” with the outcome.

“We are delighted that the Supreme Court upheld the earlier decision of the Court of Appeal, confirming that Oatly’s trade mark ‘Post Milk Generation’ contravened the rules protecting reserved dairy terms,” she said.

Dr Bryans added: “This ruling is an important decision for the sector as it finally provides clarity on how dairy terms can - and cannot - be used in branding and marketing.”

She said the judgment “brings greater certainty for businesses and helps ensure that long-established dairy terms continue to carry clear meaning for consumers, while allowing appropriate descriptors to be used where the law permits”.

Dairy UK also expressed its “sincere appreciation to the Justices of the Supreme Court for their careful consideration of the case” and said it was “very grateful to our legal advisers at DWF and Tom Moody-Stuart KC for their expertise and commitment throughout the proceedings”.

Legal experts said the ruling draws a firm line for food and drink brands operating in Britain.

Richard May, partner at international law firm Osborne Clarke, said: “The Supreme Court’s unanimous decision provides important clarity for food and drink brands operating in the UK. It confirms that, even post-Brexit, the UK will continue to take a strict approach to the use of protected dairy terms, closely aligned with the EU regime.”

He said the principle underpinning the case was clear. “If a product is not derived from animal milk, it cannot be marketed using reserved dairy designations such as ‘milk’ or ‘cheese’.”

For plant-based producers, he added, “the safer course is to use clearly descriptive alternatives such as ‘oat drink’ or ‘plant-based drink’, and to keep statements like ‘dairy-free’ factual rather than brand-defining”.

The decision is expected to have immediate implications for branding and advertising across the plant-based category.

“In practical terms, terminology such as ‘oat milk’ or ‘plant-based cheese’ now carries heightened legal risk in the UK market,” Mr May said, warning that “marketing teams will need to ensure that product names and campaign messaging do not stray into protected territory”.

Beyond dairy alternatives, the ruling may signal a tougher stance from regulators on what lawyers describe as “category borrowing”.

“Businesses building brands around legally defined product names – whether in dairy or elsewhere – should expect careful scrutiny and plan their brand strategy accordingly,” Mr May said.

The judgment reinforces the UK’s commitment to protecting traditional food designations, even as consumer demand for plant-based options continues to grow.

Oatly has been contacted for comment.