Oatly Loses Long-Running ‘Milk’ Battle with Dairy Lobby
Oatly, the pioneering plant-based drink manufacturer, has faced significant hurdles in its branding efforts, specifically regarding the term milk.
– The Legal Dispute: Oatly aimed to trademark the slogan post-milk generation in the UK back in 2021. However, this move triggered objections from Dairy UK, the organization representing British dairy farmers.
– Supreme Court Ruling: After a series of court rulings, the UK Supreme Court concluded on Wednesday that Oatly could neither trademark nor utilize the phrase post-milk generation. The court determined that the term milk should only be associated with products derived from animals.
– Consumer Confusion: The Supreme Court expressed concern that Oatly’s branding could mislead consumers about whether their products are entirely free from milk or contain low milk content.
Bryan Carroll, Oatly’s general manager for the UK and Ireland, criticized the ruling. He claimed, This decision creates unnecessary confusion and an uneven playing field for plant-based products that solely benefits Big Dairy.
– T-Shirt Sales Still Allowed: Interestingly, Oatly is permitted to sell t-shirts featuring the slogan post-milk generation, as the law governing trademarks applies solely to food products.
– Timeline of Events:
– November 2021: Dairy UK appealed to the Intellectual Property Office (IPO) to deny Oatly the trademark.
– IPO Rejection: The IPO ultimately rejected Oatly’s application.
– High Court Appeal: Oatly contested this decision, with the High Court initially siding with Oatly, suggesting consumers wouldn’t be confused by the term.
– Court of Appeal Decision: In a December 2024 ruling, the Court of Appeal clarified that milk solely refers to animal products.
Judith Bryans, chief executive of Dairy UK, expressed satisfaction with the ruling, stating it helps ensure that long-established dairy terms continue to carry clear meaning for consumers.
The Broader Context of Plant-Based Labels
In a related development, the European Parliament has proposed a ban on terms like oat milk and veggie burger. However, the ban will only take effect if endorsed by the European Commission and all 27 member states. Farmers argue these terms mislead consumers and pose a threat to their industry, while environmentalists assert that such bans could hinder sustainability efforts.
Richard May, a partner at Osborne Clarke, commented on the implications of the Supreme Court ruling: It confirms that, even post-Brexit, the UK will maintain a stringent stance on the use of protected dairy terms, closely mirroring the EU framework. He emphasized that if a product is not derived from animal milk, it cannot be marketed using reserved dairy designations such as ‘milk’ or ‘cheese.’
Given this ruling, Oatly and similar companies will likely opt to use terms like dairy-free strictly for factual communication rather than for branding strategies.
In conclusion, Oatly’s loss in the long-running ‘milk’ battle highlights ongoing tensions between plant-based innovators and traditional dairy interests. As the market evolves, the implications of this ruling will have lasting effects on branding and consumer perceptions in the plant-based sector.