Food giant Kellogg's is taking the government to court over new rules that would prevent some cereals from being prominently displayed in stores because of their high sugar content.
Kellogg's says the rules fail to consider the nutritional value of the milk added to the product.
The government however says the new rules would help tackle childhood obesity.
Under the new regulations for England, which come into force from October, retailer promotions on food and drink high in fat, salt or sugar will be restricted.
Products covered by the restrictions will also not be allowed to be featured in key locations such as checkouts, store entrances, aisle ends and their online equivalents.