The discount chain Poundland has been fined £134,000 plus £18,162 in costs after pleading guilty to breaching food hygiene laws.
Pictures of chocolate Father Christmas figures, including one with part of its head nibbled through, were presented in court.
Along with internal Poundland documents in which employees had complained of a "disgusting" storeroom.
The West Midlands-based discount chain admitted a total of eight offences relating to two of its outlets in the city centre.
They pleaded guilty in December to four food hygiene offences after checks were conducted by Birmingham City Council in 2016.
Poundland, which has its head office in Willenhall, near Wolverhampton, admitted several specific breaches of EU food and hygiene regulations, including failing to ensure food was protected from contamination.
Passing sentence on Poundland, Judge Mary Stacey said the evidence showed a failure to monitor and supervise at a senior corporate level.
But the judge accepted that Poundland's own records had helped to establish the facts of the case.