Wednesday, April 6, 2011

What are Pringles anyway?

We always thought Pringles were some kind of a tasty potato chip?
That's what the can reads anyway.
Who were we to argue?

But lawyers for Pringles claim that the crispy chips don’t have enough actual potato – just 42% potato flour, to be labled “potato crisps, potato sticks or potato puffs.”
Instead, they say, let us call Pringles, “savory snacks.”

The reason for all this is because Proctor and Gamble wants to avoid paying U.K.’s value-added tax on potato snacks.
In a 2008 ruling by Britain’s High Court Pringles were regarded more like a cake or bread,which allowed P&G to escape the potato tax

But an appeals court in 2009 said that Pringles are definitively potato chips, and are subject to the U.K.’s tax.
Procter and Gamble was ordered liable for £100 million of past taxes and £20 million in annual taxes going forward.

In a news release which announced a merger of Pringles into Diamond Foods, Pringles is now being called “potato crisp, defined as an extruded snack.

So, pay no attention to the words on the can, just enjoy your extruded snack.