Oatly loses final appeal in ‘milk’ labelling battle

Following the Supreme Court’s decision from today, 11th February, Oatly’s trademark Post Milk Generation is invalid because it contains the word milk in a way that UK trading rules say cannot be used for non-dairy products.  

This effectively prevents the drink manufacturer from using the slogan for oat drinks and related products. 

Back in 2024, the Court of Appeal ruled that only animal products can be commercially called ‘milk’. Therefore, all of its vegan substitutes have to stick to different names.  

Oatly had previously won a dispute to call its plant-based drinks a Post Milk Generation.  

Dairy UK, however, argued that it was unlawful to use the term ‘milk’ in the company’s trademark, which resulted in the overturning of the High Court’s previous decision. 

Dr Judith Bryans, CEO of Dairy UK, said: “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.

“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. It 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.”

‘Important clarity for food and drink brands’

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. 

“The key principle is straightforward: 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, 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. 

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

READ MORE: Oatly lost rights to call its vegan drinks ‘milk’

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