Found this nifty garbage bag holder made from a coffee can here:
http://creatingahouseofgrace.blogspot.com/2010/06/under-my-sink-makeover.html

Not sure what to do with plastic grocery bags? This organizer is super cute and it’s made from a towel!

Martha Stewart’s Pretty Plastic Bag Organizer

Tools and Materials
15-inch-wide dish towel (ours has a 1/2-inch hem)
Pins and scissors
10-inch strip of 3/4-inch twill tape
7 1/2-inch strip of 1/4-inch elastic;
1 1/2-inch safety pin

Plastic Bag Organizer How-To
Fold dish towel in half lengthwise, wrong side out; pin along the edge that’s opposite the fold. Pin twill-tape ends to one open end to form hanger.

Sew a seam 7 inches from the folded edge to make a tube. Stitch twill tape in place.

1. Twill tape hanger
2. Folded edge
3. New seam

Thread elastic through the towel’s existing hem: Snip one small slit in the towel’s hem (shown, right). Flip tube over and repeat, making a second slit. Tie a large knot at one end of elastic; attach safety pin to other end. Slide safety pin through 1 slit, and ease through hem and out other slit. Tie elastic ends to gather. Turn bag right side out.

4. Snip line