The Supreme Court's ruling in the case of Oatly AB v Dairy UK marks "a decisive moment in UK food-labelling law" that will bolster the dairy industry, according to a leading lawyer.

 

The dispute centred on Swedish plant-based drinks manufacturer Oatly's use of the slogan "Post Milk Generation" in marketing oat-based food and drink products.

 

While the trademark was initially granted in 2021, Dairy UK challenged its validity on the grounds that both EU-retained and UK law restrict the terms "milk" and "milk products" to foods of mammalian origin.

 

This principle serves to protect the integrity and reputation of traditional dairy goods - an important measure for UK dairy farmers.

 

The lengthy legal process included an initial UK Intellectual Property Office (UK IPO) decision invalidating the trademark for food and drink (except T-shirts), a temporary High Court win for Oatly in 2023, and a reversal by the Court of Appeal in 2024.

 

The Supreme Court has now ruled unanimously in Dairy UK's favour, upholding the invalidity of the trademark for food and drink categories and reinforcing the legal distinction in favour of dairy farmers and the products they produce.

 

Amy Peacey, partner in the commercial team at national law firm Clarke Willmott, says the judgment marks "a decisive moment in UK food-labelling law."

 

"This outcome is expected to have far-reaching implications for manufacturers, marketers and consumers," she says.

 

"It will strengthen the position of British dairy producers by cementing strict legal definitions. For plant-based producers, it imposes tighter marketing constraints and signals a regulatory environment less tolerant of linguistic innovation.

 

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

 

Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.