Procter & Gamble has said that it is “disappointed” by an appeal court ruling classifying its Pringles brand as “crisps”, meaning that they are subject to Value Added Tax in the UK.
The consumer goods giant had argued that the potato snack should not be classified as a “crisp”, in line with certain other products in the category, such as corn snacks, a spokesperson for the company told just-food.
“We have always asserted that Pringles should be treated in the same manner as other savoury snacks of similar composition. Pringles are made from high-quality ingredients e.g. corn, whet rice oil seasoning and of course potato. All ingredients are clearly labelled on pack,” the spokesperson said.
While the company emphasised that it is up to date on its VAT payments for Pringles, the ruling does mean that the group will not be entitled to a GBP100m (US$157.2m) tax rebate.
The spokesperson said P&G is currently reviewing the decision and considering its options for an appeal.