The Supreme Court of the United Kingdom has ruled that manufacturers of plant-based products cannot use dairy terms in ways that mislead consumers about the nature of their products.
The ruling banned Swedish-based drink manufacturer Oatly from using the term ‘milk’ in its products, particularly the trademark ‘Post Milk Generation’.
Since 2021, the Swedish drink company has been involved in a legal battle with Dairy UK over the trademark.
ADF, responding to the decision, said Australian experience showed marketers of plant-based products often tried to imitate dairy staples.
“These products are formulated to mimic the natural taste of dairy, and while they are often fortified with vitamins and minerals, they are not nutritionally equivalent to dairy products,” ADF said.
The Australian Government has just announced it will pursue a voluntary approach to plant-based labelling following its review, rather than enforce clear separation in law.
ADF president Ben Bennett said Australia was increasingly out of step with global standards.
“Words matter. When consumers pick up a product labelled ‘milk’, it should come from a cow — not a marketing department,” Mr Bennett said.
“Consumers should have the confidence that what they are buying is a dairy product with the natural nutritional profile that comes with dairy, not be misled by artificial alternative products suggesting they have the same nutritional benefit.
“This is why the rest of the world protects dairy words, because they mean something. Here in Australia, we’re allowing these products that are engineered through additives and fortification to imply they offer the same benefits as dairy products.”
Instead of clear mandatory regulation, the government endorsed the development of a voluntary code of practice to be drafted and led by the Alternative Proteins Council.
ADF said allowing the plant-based industry to draft its own standard on the use of dairy terms was fundamentally flawed.
“You cannot ask an industry that profits from using dairy language to write the rules about how dairy language should be used — they are clearly conflicted,” Mr Bennett said.
A voluntary code does not prevent misuse.
Across the EU, the UK and the US, dairy terms are legally protected. Plant-based products cannot be sold with the terms ‘milk’ or ‘yoghurt’. They may use descriptors such as ‘style’ or ‘alternative’, but the core dairy term remains reserved.
“Australia helped write the international Codex standards on what milk is,” Mr Bennett said.
“We accept those rules in international trade negotiations yet refuse to apply them at home. That undermines our farmers and our credibility.”
Australia is a major dairy exporter. ADF said failing to protect dairy terms domestically weakened the standing of Australian dairy in global markets where those words were legally protected.
Mr Bennett said ADF was not seeking to remove plant-based products from shelves.
“We’re calling for clear, mandatory rules so that dairy terms are reserved for dairy,” he said.
“The world recognises that dairy words have meaning. Australia should too.”
