Irish court rules Subway's bread can't legally be classified as bread

The Irish Supreme Court ruled this week that the fast-food sandwich chain Subway cannot, under a national tax law, legally classify its sandwich bread as "bread" due to its high sugar content. 

In a dispute before the high court, Subway franchisee Bookfinders LTD argued that its heated sandwiches constitute a "staple food" and are thus absolved from value-added taxes under Irish law. 

But the court in its ruling said that Subway's bread, the sugar content of which is about 10% the weight of the flour in the product, exceeds the 2% sugar-by-weight limit under the relevant statutory definition of "staple food."

Subway's sandwich bread thus "falls outside the definition of 'bread'" under Irish law, the ruling states. 

Irish statute, the court said, "seeks to distinguish between bread as a staple food ... and other baked goods made from dough, which are, or approach, confectionery or fancy baked goods."

Subway in a public statement criticized the ruling, claiming that their bread products are "of course, bread."

"We have been baking fresh bread in our restaurants for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes," the company said.