Yup. Total failure. In fact, I'd like
all products I buy to have this design (+/- different colors).
I know it's untenable in practice, but in my perfect imaginary utopia, products on shelves would have minimalistic (and standardized) packaging with no branding crap, and the labeling would be maximized for utility. Product type and core variables (e.g. "milk" and "UHT 2%") in large font, ingredients, nutrition table and manufacturer/expiry date in small font below or to the side.
Like e.g. this bottle: https://i.ytimg.com/vi/BAoadypFBQ4/maxresdefault.jpg.
Every now and then, some company releases a product run with similar minimalistic packaging; when I spot it in the store, I tend to buy it just for the packaging.
EDIT:
Come to think of it, I feel like calling bullshit on the whole "ugly color" idea. What color is actually perceived by a human depends on a lot of factors, like material, texture, lighting, shadows - or in case of digital reproductions, color capabilities and calibration of the display. Case in point: on my half-decent display, this Norway snus looks premium to me, not ugly. And in a physical store, I bet the vendors set up the colors of the lights on a shelf to maximize that premium feeling.
If you want to go for maximum effect, you need to take something that the brain can't just interpret differently because the light slightly changed. E.g. visceral colors + texture. Or the usual shots of tumors, like on cigarette boxes in some countries.
If I wanted to go for maximum effect, I'd mandate that the packaging should contain large photos of: a tumor, a spider, and a lotus seed pod. This would be sure to scare off a good chunk of the population (don't Google lotus seed pods if you're not ready to risk a very unpleasant feeling).