Britain Supreme Court's recent decision to categorize Pringles as potato chips instead of "savory snacks" as argued by Pringles has cost its parent company Procter & Gamble U.K. $160 million in taxes.
In Britain, most foods are exempt from the value-added tax, but potato chips — known as crisps — and “similar products made from the potato, or from potato flour,” are taxable. Procter & Gamble, in what could be considered a plea for strict construction, argued that Pringles — which are about 40 percent potato flour, but also contain corn, rice and wheat — should not be considered potato chips or “similar products.”