The move seals the largest ever Vegware compostable cups contract for cups manufacturer CupPrint.
Frank and Honest is part of the SuperValu and Centra groups in Ireland, which are owned by Musgraves.
CupPrint anticipates the contract will result in new jobs at its Ennis, County Clare manufacturing plant, which is currently undergoing a €10m investment programme including doubling its manufacturing capacity.
The Frank and Honest announcement was made yesterday in Dublin with Irish Environment Minister Dennis Naughton, TV/ radio personality Angela Scanlon and Martin Kelleher, managing director of SuperValu and Centra.
CupPrint chief executive Terry Fox said: “We are delighted to be working with Frank and Honest and believe this move marks a real step change in showing how we can deal positively with paper cups. There’s no need for any paper cups to go to landfill if operators take innovative decisions like Musgraves have and we hope that where Frank and Honest leads the way, others will follow.”