Abstract: A jug for retaining a plastic bag containing a liquid and a method of using the same. The jug includes a bottom and a peripheral wall extending upwardly therefrom and defining a cavity for receiving the bag. The peripheral wall terminates in a rim and a handle extends outwardly from the peripheral wall's exterior surface. An engagement means is provided on the jug to engage the bag and retain it within the cavity when the jug is tilted to pour the liquid therefrom. The engagement means preferably is a slit defined in the rear region of the peripheral wall adjacent the handle. The slit originates in the rim and extends downwardly for a distance. A portion of a rear region of the bag is slid into the slit and wedged therein. The wedged portion extends into a compartment defined by a retaining wall that extends outwardly from the peripheral wall.