UK dairy sector gains clarity as Supreme Court rejects Oatly appeal

The UK dairy industry has secured important legal clarity on the use of protected dairy terms after the Supreme Court dismissed Oatly’s appeal over its “post milk generation” trade mark.

The ruling confirms that the slogan cannot be used in relation to oat‑based food and drink products, marking a significant win for Dairy UK, which was advised throughout the case by legal and business services provider DWF.

In a unanimous judgment, the Court upheld earlier findings that the mark breached assimilated EU rules governing the use of dairy designations such as “milk”, “cheese” and “yogurt”. The decision confirms that these protections extend beyond product names and apply wherever dairy terms are used to promote or describe non‑dairy goods.

Oatly had argued that “milk” in its slogan was not being used as a product designation and therefore fell outside the scope of the legislation. It also claimed the mark should be allowed under an exception for terms that clearly describe a characteristic quality of a product. The Supreme Court rejected both arguments, ruling that “designation” should be interpreted broadly and that the slogan did not meet the threshold for the statutory exception.

For dairy processors and brand owners, the judgment provides long‑awaited certainty on how dairy terms can be used in marketing and trade marks in the post‑Brexit regulatory landscape. The Court emphasised that the framework is designed to maintain fair competition and prevent consumer confusion in the agricultural and food sectors.

The case was led for Dairy UK by DWF director Asima Rana, supported by associate Jake Slinger and counsel Tom Moody‑Stuart KC of 8 New Square. Rana said the ruling “brings welcome clarity” on how the rules should be applied in practice.

Dairy UK chief executive Judith Bryans described the outcome as “significant and welcome”, reinforcing long‑standing protections for dairy terminology.