Some of the country's biggest and wealthiest retailers are to receive cash handouts from the Waste and Resources Action Programme.
Retail giants like Argos, Tesco and the Co-operative Group as well as companies Pira International and Yorkshire Fresh Salads/Eco3 will receive grants from the £8 million Waste Minimisation Innovation Fund.
These companies will share over £490,000 to design, test and pilot new packaging ideas.
"We are committed to doing this in a way that will consider total supply chain issues, take account of shelf-ready packaging requirements, deliver a reduction in costs and continues to provide our customers with a good value, clearly identifiable and convenient solution."
In September last year, Tesco reported profits for the first half of the financial year of £822 million. The company receives £1 from every £8 spent in British shops.
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