Nestle introduced the Plantic biodegradable tray into its Dairy Box and Black Magic boxes in October 2005. The trays were designed to decompose within three months on a compost heap or disintegrate within moments of contact with water.
At the time, Nestle said it was looking to roll out similar materials for packaging on other products.
However, a spokeswoman told Marketing: 'Due to technical problems with the performance of the Plantic trays in Dairy Box and Black Magic, we are reverting to using PVC trays.'
Nestle, which has signed up to the Courtauld Commitment to reduce packaging waste, claims to have cut its packaging by more than 18,000 tonnes in the UK since the programme began.