Dutch sequels of Tofutown saga: Thou Shall Not Touch Dairy Names!

On 23 July 2024 a Dutch Court ruled in summary relief proceedings that Upfield cannot use the name “roombeter” for a plant-based alternative for butter, as this is in violation of the Regulation establishing a common organization of the markets for agricultural products (“COM Regulation”). You should know that “roombeter” translates in English as a composition of “cream” and “better”, whereas “cream” is a reserved designation under the COM Regulation that can only be used for dairy products. Furthermore, “beter” is close to “boter”, being the Dutch designation for butter.

Facts of the case at hand

In the case at hand, Upfield markets a plant-based alternative for butter under the brand BLUE BAND and the product name ROOMBETER. The packaging of the product furthermore states “100 % plant-based alternative for butter” and “81 % less climate impact than butter”. The packaging itself consists of golden coloured paper that is also used for conventional butter in the Netherlands and it displays a curl of butter as shown below. The Dutch Dairy Association opposed the use of the product name ROOMBETER, as it is considered this a violation of the COM Regulation, as explained below.

Case before Dutch Advertisement Code Committee

Prior to this legal procedure , the Dutch Dairy Association had submitted a complaint regarding this product before the Dutch Advertisement Code Committee. This self-regulatory body ruled on March 21 last that the presentation of the product was misleading, since it could be understood to contain butter. The “e” in “beter” could be confused for an “o”, resulting in “boter”, which is Dutch for butter. And furthermore the golden coloured packaging added to the misleading character of the product. The topic of violation of the COM Regulation was left to civil law proceedings, as it exceeded the competence of the Committee.

Applicable legislation

Article 78.2 of the COM Regulation states that the definitions, designations and sales descriptions provided for in its Annex VII may be used in the Union only for the marketing of a product that conforms to the corresponding requirements laid down in that Annex. Annex VII contains, amongst other things, a product definition for milk and a list of milk products. It furthermore states that these designations may not be used for any other product than milk and milk products. The purpose of this provision is to protect dairy names from being used for non-dairy products.

Tofutown

You may recall that in its Tofutown decision back in 2017, the ECJ formulated a very strict prohibition of the use of diary names for non-dairy products (check out our blog on this case here). As a result of that prohibition, the use of the designation “Tofubutter” for a tofu-based product was in violation of the COM Regulation. As a general rule, the ECJ precluded the term ‘milk’ and the designations reserved by the COM Regulation exclusively for milk products from being used to designate a purely plant based product in marketing or advertising. This even applies if those terms are expanded upon by clarifying or descriptive terms indicating the plant origin of the product at issue

Arguments in favour of ROOMBETER

Upfield had argued it did not market its product under the designation ROOMBETER but under the designation BLUE BAND ROOMBETER. The brand BLUE BAND has been used for more than 100 years for margarine, so it is obvious for the consumer this is a plant-based product This is even strengthened by the Dutch translation of the designations “100 % plant-based alternative for butter” and “81 % less climate impact than butter”. So the name ROOMBETER does not designate, imply or suggest it is about a dairy product.

Court decision

The Court did not eat it. Instead, it very strictly applied the Tofutown doctrine, stating that a reserved designation under the COM Regulation cannot be used for a plant-based product. It went on to explain that if it is prohibited to use the designation “tofubutter” for a plant-based product, as it contains the reserved designation “butter”, for sure it is prohibited to use the designation “roombeter” for a plant-based product, as it contains another reserved designation under the COM Regulation. Also, the element “beter” (“better” in English) can hardly be perceived as a clarifying or descriptive term, as it does not refer (contrary to “tofu”) to a plant-based origin. In fact, its reference to plant-based origins can only be understood by those consumers who know the “skip the cow” ad or who further study the packaging of this product.

Upfield was therefore ordered to stop using the designation ROOMBETER within three months after the date of the legal decision.

Consequences of this decision

Should the conclusion of this decision be that any reference to dairy products should be meticulously avoided when marketing plant-based dairy replacements? This seems a very hard task, as manufacturers of these replacement products will want to indicate how their products can be used. Happily, this is not the case. It is still permitted to mention that your plant-based product is for instance a “yoghurt variation”, as this is perceived as a product explanation rather than a product designation. This is not in violation of the Tofutown doctrine and in line with a 2019 Dutch Supreme Court decision relating to a soy-based product marketed by Alpro. Advertising plant-based dairy alternatives nevertheless remains a delicate balancing act.


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