Iceland's relationship with its well-recognised star came under the spotlight last month when she slurred her words in an interview on TV show 'This Morning', prompting concerned calls from viewers and a barrage of complaints about her behaviour to Iceland.
In the aftermath Iceland said it felt she should not have done the interview and it has since transpired Katona had offered, or was asked by the chain, to take tests to prove she was not an alcoholic.
Now she has gone public with the admission that she was diagnosed as an alcoholic four years ago and is involved in an "ongoing battle" with drink.
In the interview with the Sunday People newspaper she said: "I can get through days without having a drink but it's hard. I can never promise myself or my family that I can beat this addiction but I'll try bloody hard."
Katona's husband Mark Croft also admitted that she had one vodka and Red Bull on the night before appearing on 'This Morning', but insisted that her slurring was purely the fault of the medication she is on to combat her bi-polar disorder.
Iceland was unavailable to comment at the time of publication.