A court has ruled that Kellogg's cannot promote sugary cereals in supermarket offers.
New rules in England will limit the availability of food and drink high-fat, salt, or sugar promotions in stores.
Kellogg's, a food giant, had sued the government claiming that the rules didn't take into consideration the nutritional value added milk.
The Royal Courts of Justice however ruled in favor of the government. Kellogg's stated that it was "disappointed".
Chris Silcock, Kellogg UK managing Director, stated that it makes no sense for consumers to be able buy other products (like donuts or chocolate spreads) on promotions - but not all types of breakfast cereals.
The government delayed the implementation of the new rules due to the crisis in the cost-of-living.
They will prohibit foods high in fat, salt, or sugar from being sold in special spots, such as checkouts, store entrances, aisle ends, and online equivalents.
High sugar brands like Fruit and Fibre and Crunchy Nut Corn Flakes are popular brands.
Kellogg's however argued that adding milk to the equation would alter the calculation, as it would reduce the sugar and salt content relative the overall weight.
According to the company, independent market data indicated that cereals were consumed with milk or yogurt in 92% of cases.
Judge Justice Linden, however, stated that Kellogg's cereals do not include instructions for their preparation which state they should be consumed with milk.
Justice Linden stated that there is "no doubt" breakfast cereals can be a part of a healthy diet.
However, he said that while promoting nutritional benefits for a specific breakfast cereal does not change the fact that it may contain excess fat, sugar, or salt. This feature can be harmful to a child's overall health.
"Nor does mixing a high-sugar breakfast cereal with milk change the fact that it's high in sugar."
He ruled that Kellogg was not unfair and that the public health argument for the new rules was convincing, proportionate, and rational.
Kellogg's Mr Silcock stated that the firm will not appeal against the judgment, but urged government officials to reconsider the new rules.
He said, "By restricting the placing of items in supermarkets people have less choice and possibly higher prices."
