Court Rules Oat-Based Products Cannot Be Marketed as ‘Milk’
Oatly, a Swedish oat drink company, has lost a significant legal battle regarding the use of the term “milk” to describe its oat-based products. The conflict originated with Dairy UK, the industry’s trade association, concerning Oatly’s trademarked phrase “Post Milk Generation.” This legal dispute centered on whether “milk” could appropriately apply to non-dairy products.
Court Rulings and Legal Proceedings
The High Court initially supported Oatly’s challenge in 2023 against the Intellectual Property Office’s decision declaring the trademark invalid. However, in 2024, this decision was reversed by the Court of Appeal, prompting Oatly to escalate the matter to the Supreme Court in December of the previous year.
Arguments Presented
Oatly’s legal team contended that the trademark clearly indicated the products contained no milk. Conversely, Dairy UK argued that the trademark was misleading, as it failed to clarify that the products were milk-free and instead focused on a demographic of consumers.
- 2023: High Court decision in favor of Oatly initially.
- 2024: Court of Appeal overturns the High Court ruling.
- December 2024: Oatly appeals to the Supreme Court.
Supreme Court Decision
On Wednesday, the Supreme Court delivered a unanimous verdict dismissing Oatly’s trademark as invalid. The justices emphasized that the trademark did not adequately describe any specific attributes of the oat-based products. Instead, it primarily targeted younger consumers concerned about traditional milk consumption.
Implications for Oatly and the Dairy Industry
The ruling reinforces regulations concerning the use of the term “milk” in product labeling. Such regulations stipulate that only certain products can utilize “milk” and “milk products” in their descriptions.
Bryan Carroll, general manager for Oatly UK & Ireland, expressed disappointment over the ruling. He stated that it creates confusion and an uneven competitive landscape for plant-based alternatives.
This case highlights the ongoing tension in the food industry concerning labeling practices. As consumers continue to seek plant-based options, clarity in product descriptions will be essential for both consumer trust and industry fairness.
