Fans of Pringles lick lips over court ruling

LONDON (Reuters) - Fans of Pringles are savouring a court ruling that the snack is not a potato crisp.

Friday'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 one billion dollars, 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 judgement.

(Reporting by John Joseph; Editing by Steve Addison)