Labeling Lawsuit Challenges Use of “Butter” on Vegan Product Amid Ongoing Dairy Definition Debate
This labeling lawsuit is not only contesting the use of the term “butter” on non-dairy product packaging, but it also asserts that Miyoko’s Kitchen Cultured Vegan Butter is not nutritionally comparable to actual butter. The lawsuit argues that the product—composed of coconut and sunflower oil, cultured cashew nuts, and other ingredients—”capitalizes on dairy’s ‘halo’ by employing familiar terminology to evoke positive characteristics, including the notable levels of various nutrients typically linked to real dairy products.” The complaint indicates that while the product qualifies as margarine under Food and Drug Administration standards, it does not meet the butter criteria due to lacking the required 80% milk fat content. Additionally, the vegan alternative is said to fall short nutritionally as it does not provide vitamins A and D or calcium, the complaint noted.
This lawsuit emerges amid a broader debate regarding the definition of “milk.” The FDA has been soliciting consumer opinions on what “milk” means to them and may seek to refine the standards for marketing milk based on these responses. The agency could potentially require different terminology for dairy alternatives, such as “plant-based beverage” or “fortified beverage,” or in this instance, perhaps “vegan spread,” “buttery spread,” or “vegan margarine.” The interpretation of dairy could hinge on consumer usage and understanding of label language. This lawsuit highlights the ongoing uncertainty in this realm, despite a survey indicating that most consumers are not confused about dairy terminology.
The dairy industry has been advocating for action as plant-based products utilizing dairy-like labels—such as milk, butter, cheese, and yogurt—capture an increasing segment of the market. The sector has faced significant challenges due to competition from beverages made from soy, rice, almonds, hemp, oats, and other nuts and grains, alongside a record surplus of milk, prices that fall below production costs, and recent tariffs from China on U.S. cheese and whey. As a result, the industry is taking measures to combat plant-based products that use dairy terms without containing any animal-derived ingredients.
Proving that consumers are misled into believing this plant-based vegan spread is dairy butter may be a complex task. The packaging clearly states “vegan,” and the ingredient list is devoid of any dairy components. While some consumers may not check ingredients before purchasing, vegan spreads do not always resemble, smell, or taste like traditional dairy butter. Furthermore, this type of vegan spread typically carries a higher price tag than dairy butter, which might prompt a discerning consumer to reconsider the product.
Michele Simon, executive director of the Plant Based Foods Association, referred to the complaint against Miyoko’s Kitchen as “a frivolous lawsuit.” She stated, “While there is no merit to these cases, it does mean that our member companies must take steps to mitigate the risk of FDA actions, state-level interventions, and consumer lawsuits.”
As food companies increasingly incorporate plant substitutes into traditional products, some new iterations face standard of identity lawsuits. However, there are instances where companies have successfully defended their products. For example, in 2014, Unilever—producer of Hellmann’s Mayonnaise—filed a lawsuit against Hampton Creek (now known as JUST) for labeling its vegan mayonnaise “Just Mayo.” Unilever contended that the startup’s product did not meet the standard of identity for mayonnaise because it lacked eggs. Eventually, after negotiations, Unilever withdrew its lawsuit, and the FDA was satisfied with the label modifications made to Just Mayo.
In a world where consumers are more health-conscious, products that celebrate vitamins, such as calcium citrate soft chews, are becoming increasingly popular. This trend reflects a growing demand for transparency in food labeling and nutrition, further complicating the landscape for both traditional and plant-based products.
