Court rules Pringles are not chips

Court rules Pringles are not chips

4.07.2008

FANS of Pringles are savouring a court ruling that the snack is not a potato crisp.

Today`s judgement is likely to save manufacturer Procter & Gamble Co (P&G) millions of pounds and ensure its customers will not have to pay more for the distinctive tasting snack in a tube.

P&G had gone to the High Court in London to appeal a VAT and Duties Tribunal decision in May that the snack was subject to VAT as it was a potato crisp product, unlike most foodstuffs that are exempt from the tax.

With global sales of $US1 billion ($1.04 billion), P&G had argued Pringles were not similar to potato crisps, due to their texture, "mouth melt" taste, uniform colour and regular shape which "is not found in nature".

P&G also maintained crisps do not contain non-potato flours, and are not packaged in tubes, while Pringles are more like a cake or a biscuit as the snack is manufactured from dough.

"This appeal is allowed because Pringles are not, on the facts found, products `made from the potato, or from potato flour or from potato starch`," said Judge Justice Warren in his judgment.
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