Lawyers say Supreme Court Oatly ruling boosts UK dairy farmers

Lawyers say the Supreme Court’s ruling against plant-based drinks giant Oatly represents a significant boost for UK dairy farmers, reinforcing strict legal protections around the use of the word “milk”.

In a unanimous judgment in Oatly v Dairy UK, the court upheld the invalidity of Oatly’s “Post Milk Generation” trademark for food and drink products.

Legal experts say the decision strengthens the long-standing rule that dairy terms are reserved exclusively for products of mammalian origin.

Amy Peacey, partner in the commercial team at national law firm Clarke Willmott, described the ruling as “a decisive moment in UK food-labelling law”.

She said the outcome would “strengthen the position of British dairy producers by cementing strict legal definitions” and provide greater certainty for farmers concerned about how alternative products are marketed.

The dispute centred on Oatly’s use of the slogan in promoting its oat-based drinks. Although the trademark was granted in 2021, Dairy UK challenged its validity, arguing that both retained EU law and UK legislation strictly limit the use of terms such as “milk” and “milk products”.

Following a series of appeals — including rulings by the UK Intellectual Property Office, the High Court and the Court of Appeal — the Supreme Court has now confirmed Dairy UK’s position.

Ms Peacey said the judgment is expected to have “far-reaching implications for manufacturers, marketers and consumers”.

For plant-based producers, she added, it signals “a regulatory environment less tolerant of linguistic innovation”, meaning greater care will be needed in branding and packaging.

“As the sector continues to expand, compliance with terminology rules will become a central part of product development and brand strategy,” she said.

The plant-based drinks market has grown rapidly in recent years, intensifying debate over how closely alternative products can associate themselves with traditional dairy language.

Legal experts say the Supreme Court’s decision provides clearer boundaries, reinforcing the protection of established dairy terminology and offering reassurance to British dairy farmers that existing definitions will be upheld.

The ruling is likely to influence how alternative protein brands position themselves in the UK market, while underlining the courts’ willingness to defend statutory food-labelling protections.