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Tesco will also host a family area designed to provide families attending the event with a “safe, relaxed and chilled out” place with family-friendly entertainment and activities aimed at younger children.

The supermarket will also contribute to funding the free-to-attend event, which is organised by volunteers.

Tesco joins Smirnoff as headline sponsor for the annual event and builds on Tesco’s presence at the 2011 festival.

The news comes shortly after Tesco ended its 10-year partnership with Cancer Research’s Race for Life fundraising event.

Pride London is already the largest Gay Pride event in the UK and it is extending its carnival route and adding a second day to the festival for 2012, when it will host the global festival WorldPride 2012.

Andrew Higginson, CEO of retailing services at Tesco, says: “Tesco is the UK’s largest private employer, and a very diverse international organisation where everybody is welcome. Our Out at Tesco team will be working closely with Pride London to ensure next year’s event is even more a fun.”