Pringles-style crisps: why they aren't made in Spain

Making Pringles-style crisps requires an 80-100 million investment and plants that have long been paid off. This is how the private label business works.

English · Original discussion in Spanish · Published

Why aren't private label Pringles made in Spain?

The short answer: it's not an industrial secret or an impossible patent to get around. It's a question of where the factories were built three decades ago and how much it would cost today to replicate that structure from scratch.

Those who have looked closely at the numbers sum it up like this: the Pringles-style crisp isn't cut, it's molded. It's a dough made of dehydrated potato, flours and emulsifiers that is rolled out, stamped into ovals and fried in a continuous process. Nothing like the classic fried potato. That makes the production line more expensive and less flexible.

The key: plants that are already paid off

The plants that make the original and its imitations in Europe have been in Belgium and Poland, near ports such as Antwerp or Rotterdam, since the 1980s and 1990s. The machinery is already paid for. A new line in Spain would require between 80 and 100 million euros and would take about 15 years to match costs. That's why the private label version, in 90% of cases, comes from the same factories that produce the original: it's the surplus capacity sold under another label.

Transport isn't the bottleneck

Bringing a truck in from Belgium costs between 1,500 and 2,000 euros and carries about 24 pallets of 500 cans each: roughly 15-20 cents per can. An affordable cost. The real barrier is amortizing a mammoth investment against factories that have been running at full capacity for decades.

The result is paradoxical: Spain, with hundreds of manufacturers of conventional crisps, doesn't have a single line of this kind operating for private labels. The know-how can be copied; the capital cannot.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (29 replies).

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