“Our packaging is under constant review and the council was made aware of our plans for this product back in June, so we never understood why the prosecution was allowed to go as far as it did,” said a Sainsbury’s spokesperson.

“The packaging of the product in question has been reduced by 53% and is set to be reduced by another 10% within the next few months.”

Head of Lincolnshire Trading Standards Peter Heafield said: “This authority first drew its concerns about this issue to Sainsbury’s attention in early 2009 and the matters before the court related to the packaging used on this product in April 2009 and February 2010.

“With the changes that have now been made, and the intention of Sainsbury’s to make further reductions if possible, this authority has decided that it is no longer in the public interest to prosecute.”

If the case had gone ahead, Sainsbury’s wouldb have become the first supermarket to be taken to court for breaking the legislation.