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Oatly loses legal battle over ‘Post milk generation’ claim

Oatly has lost a long legal battle with the UK dairy industry and cannot use the term “Post milk generation” in its marketing.

In February, the Supreme Court in the UK 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.

Dairy UK, which represents major dairy processors in the UK, said the decision “finally provides clarity on how dairy terms can – and cannot – be used in branding and marketing”.

The ruling came in the same week that the Swedish company announced its first fully profitable year.

“[...] today has also been a reminder of what we are up against,” said Bryan Carroll, general manager UK and Ireland at Oatly, of the ruling. “This is a clear move to stifle competition by Big Dairy,” he added.

Court case ruling explained

The decision has inevitably attracted a lot of attention, with much of the reporting focusing on whether consumers are actually confused by use of the term ‘milk’ on non-dairy products.

However, lawyers at DWF who advised Dairy UK during the proceedings told Ingredients Network that this case does not address confusion.

“The word ‘confusion’ appears zero times in the judgment,” said Dominic Watkins, global lead consumer sector, at DWF. “It was all a question of law,” he added.

The principal point, Watkins explained, is that the use of the term milk in law can only be used – whether in the name or any associated designation on the product – if the product meets the milk definition under EU law or falls into one of the exempted product types set out in the underlying regulations, which includes coconut milk.

Watkins added: “The issue was never one of confusion as the appeal concerns the proper interpretation of Parliament and Council Regulation (EU) No. 1308/2013 of 17 December 2013 establishing a common organisation of the markets in agricultural products (the ‘2013 Regulation’) that, amongst many other things, regulates the use of dairy terms, such as milk, cheese, and yoghurt, in relation to the marketing of agricultural products.”

Under Regulation (EU) 1308/2013, designations for milk and milk products are reserved exclusively for products derived from animal milk. So, the Supreme Court has now confirmed that ‘Post milk generation’ falls within the scope of that prohibition.

Oatly argued that the phrase wasn’t being used to name the product and therefore shouldn’t count as a prohibited ‘designation’.

As the market for dairy alternatives has grown, so too has the use of dairy denominations in product names.

Watkins said the fundamental question was whether the trade mark - Post milk generation - when applied to foods illegally used the word ‘milk’.

“This decision confirms that doing so is illegal,” Watkins explained. “It also confirms that it is OK to say 'milk-free' as it is permitted because it is clearly being used to describe a characteristic quality of the product – that it does not contain any milk.”

Maria O’Loan, head of the environment team at Tughans law firm, said the judgment “significantly strengthens regulatory protection of dairy designations and sends a clear message to plant-based brands: creative branding cannot sidestep statutory restrictions where consumer understanding is at stake.”

Alexander Grist from Britton & Time solicitors said: “The decision is a reminder that clever branding still operates within firm legal boundaries. Food labelling law is about fair competition as much as consumer protection, and when it comes to dairy terms, the courts are prepared to enforce the rules strictly.”

A blocker for plant-based innovation?

Whether the decision stifles innovation or restricts the growth of the dairy-free category remains to be seen.

Oatly’s Carroll used social media to highlight the latest UK Nielsen data showing that dairy drinks volume sales declined in the last year, whilst Oatly’s grew by 2.9%. “And in more recent time periods that is accelerating as new innovation and new formats attract new shoppers and more occasions,” he noted.

Carroll, referring to the latest financial results, said the company’s “taste-led strategy is working. 2025 saw the launch of our best-selling Matcha Latte which has catapulted to a category topper,” he explained. “Our growth is accelerating, with more and more people enjoying our delicious drinks in more occasions than ever before.”

Lottie Unwin, a brand and marketing expert, captured the zeitgeist of those who came out in support of Oatly when she wrote: “I care about British dairy farmers. The industry is struggling. That deserves real solutions. But banning competitors from using everyday language doesn't make people want dairy milk more.”