As dairy-free consumption surges across Europe, Swedish vegan milk alternative Oatly has hit a major legal roadblock over its branding.
As per the sources of Leaders, a recent decision by British judges has barred Oatly from calling its products “milk.” According to the Court of Appeal in London, the term can only refer to products derived from “normal mammary secretion,” effectively limiting its use to animal-based items.
This ruling is a significant blow to Oatly, which has been at odds with Dairy UK over its slogan, Post Milk Generation. The trade body argued the phrase misleads consumers, a claim that the UK’s Intellectual Property Office (IPO) upheld last year when it denied Oatly’s trademark application.
The Bigger Picture: Oatly’s “Milk” Debate
The court’s decision reflects broader tensions in Europe, where plant-based food brands face linguistic hurdles. EU regulations from 2013 already restrict using the word “milk” on non-dairy products. Yet, this runs counter to growing consumer demand.
According to Leaders sources, in 2019, nearly a quarter of Britons used plant-based milk alternatives, according to research firm Mintel. By 2024, over a million Britons had adopted vegan lifestyles, and 56% of UK consumers expressed a willingness to cut back on dairy, data from the environmental charity Hubbub revealed.
“Apparently, [the judges] think people might confuse oats with cows. Or imagine cow-shaped oats? Who knows,” quipped Alex Robinson, CEO of Hubbub, in a tongue-in-cheek LinkedIn post.
A Broader Food Fight
Oatly’s legal troubles aren’t unique. Across Europe, the dairy and meat industries have challenged plant-based and lab-grown food products.
France, for example, banned meat-related terms like “burger” and “sausage” for plant-based foods in 2021. Italy and Hungary have similarly moved to block lab-grown meat products preemptively. However, these restrictions are not always upheld. In October 2023, the EU’s Court of Justice overturned France’s ban, ruling that plant-based products could use terms traditionally associated with animal products.
What’s Next for Oatly?
Despite this setback, Oatly and its advocates remain optimistic. Alex Robinson views the ruling as a temporary hurdle rather than a permanent defeat. “This feels regressive,” he wrote, “but the direction of travel is clear: more people are choosing plant-friendly options. The law will catch up eventually.”
As Oatly navigates its branding challenges, the case highlights the ongoing struggle for plant-based brands to achieve mainstream recognition. Yet, with the steady rise of veganism and plant-based diets, it seems the tide is turning—even if the legal language lags behind.
