Oatly, the Swedish-based manufacturer known for its oat-based drinks, has faced a significant legal setback following a ruling by the UK Supreme Court. The court unanimously decided that Oatly must stop using the term 'milk' in its product marketing, specifically banning the trademarked slogan 'Post Milk Generation'. This ruling concludes a protracted legal dispute with Dairy UK, which argued that the term 'milk' should only apply to products derived from dairy animals, a contention that the court supported.

The legal case has highlighted the broader issue of terminology surrounding plant-based alternatives versus traditional dairy products. The conflict arose after Oatly attempted to brand a range of products using terms that Dairy UK claimed could mislead consumers regarding the origin and nature of the products. According to trademark attorney Laurie Bray, the court’s ruling serves as a definitive stance on the labeling of plant-based items, reinforcing a precedent that defines 'milk' strictly within the context of its animal origins.

This decision may have implications not only for Oatly but also for other companies in the plant-based sector. Firms that rely on terms associated with traditional dairy products may need to reassess their marketing strategies in light of the ruling. As the demand for plant-based products continues to rise, the legal definitions and marketing limitations set by this ruling will likely influence how such products are positioned in the market.