Oat no! Oatly banned from using the word “milk” on its packaging
Madeleine Clarke - 17 February 2026
The Supreme Court has ruled that the Swedish company Oatly cannot use the word “milk” on its food products when selling them in the UK. The company was using the phrase on its range of oat-based, dairy-alternative products such as milk, yoghurt and custard.
In 2021, Oatly tried to trademark the slogan “post-milk generation” in the UK, but the representative body for British dairy farmers (Dairy UK) objected. After a lengthy legal battle through several courts, the matter reached the Supreme Court which ruled on Wednesday 11 February that Oatly could not trademark or use that phrase.
Dairy UK argued that the term “milk” could only refer to products that come from an animal under the UK’s trademark laws. In November 2021, Dairy UK appealed to the Intellectual Property Office (IPO), requesting that it didn’t allow Oatly to trademark the phrase. The IPO responded by rejecting Oatly’s application, resulting in the company taking a claim to the High Court. The High Court considered both sides before ultimately ruling in favour of Oatly, asserting that the IPO was incorrect to think the phrase would confuse customers.
Dairy UK then appealed this, and in December 2024 the Court of Appeal upheld the IPO’s decision and asserted that the term “milk” can only be used to describe animal products. Oatly then took the case to the Supreme Court, arguing that their use of the phrase “post-milk generation” described a particular characteristic of their product, and not the product itself.
Five Supreme Court judges gave a unanimous ruling that the trademark was in fact invalid. Their ruling dismissed Oatly’s line of argument, stating: “In so far as it is describing a characteristic quality of the product, it is doing so in an oblique and obscure way and is certainly not doing so ‘clearly’”.
Since Oatly’s products are derived from oats, it will have to use other terms like “dairy free” or “oat drink” on its packaging. The ruling only applies to food products, so Oatly can still sell its t-shirts branded with the slogan “post-milk generation”.
Environmentalist have raised concerns that limiting the use of terms like “milk” on plant-based products could negatively impact the number of people choosing green alternatives to traditional food staples.
Plant-based alternative brands have faced similar legal challenges in Europe in recent years. For example, last year the EU parliament voted to ban the use of terms like “burger” and “sausage” to describe plant-based options. This ban is not yet in force and could still be overturned, as the proposal needs the approval of the European Commission and the governments of all 27 member states before it enters EU law.
The rationale behind the proposal is much the same as that behind the ruling in the UK: those who voted in favour of the proposal argue such terms could be confusing to customers.