Monday, July 7, 2008

Crisp'n Lover

UK Rules Pringles – Not a Crisp

For non-anglophiles, a crisp is called a potato chip in the States. Chips, as in Fish & Chips, are what we think of as French Fries. Amazingly, the side arguing Pringles were less than a natural food were the lawyers for Pringles’ manufacturer, Procter & Gamble. British Justice Warren considered the “Packaging, unnatural shape and the fact that the potato content is less than 50%”, before determining the snack does not meet the legal definition of a British crisp.

Pringles are the snack food shaped roughly like a Hyperbolic paraboloid. Packaged in a foil-lined tubular can, which according to the DIY crowd, can be altered to help boost WiFi signals - Both of the those features, along with its salty, fatty taste profile make the food popular with people who write computer code for a living. Invented in 1968, the product was not distributed throughout the US until the mid 70's. Now sold in over 30 countries, Pringles are available in dozens of flavors - including Filet Mignon in South America, BBQ in Israel and something called French Consommé in Japan. According to AC Nielsen, it is one of only 43 products that generates a billion dollars in annual sales.

The judgment ruling Pringles are not true crisps saves Procter & Gamble millions in a Value Added Tax (VAT). According to the BBC, all European Union countries, except Ireland, impose a VAT on high salt, high fat, fast food items usually referred to as ‘junk food’. France taxes offending foods at 19.6% foods, while the United Kingdom hits them with a 17.5% levy.

Even as someone who believes that the government ought to be able tax and regulate industries as proscribed by law, the thought of the State taxing food, any food brings out a libertarian streak in me. Reading about an agency, with the somewhat sinister name of the VAT Tribunal, setting aside a special classification of food for a regressive penalty - forces me to think the followers of Ron Paul are sensible policy theorists. If the purpose of this tax is to discourage the consumption of foods that have negative repercussions on society; sparing Pringles the VAT assessment does little encourage people to eat healthier foods. In reality, the Brits have figured out a way to raise revenue from citizens who make less than sophisticated purchasing choices - other than with lottery tickets and cigarettes, God Save the Queen.


Next up - Cilantro love and hate. Just a reminder, Saucyman loves your questions.


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