AB InBev Efes Russia reduces neck collar labels amid paper shortages and sanctions impact

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AB InBev Efes Russia pauses neck collar labels amid paper shortages

AB InBev Efes Russia has halted the production of neck labels, also known as collars, for several brands due to a shortage of paper from suppliers. The decision, described as an immediate measure by the company, was reported through a spokesperson associated with Oraz Durdiyev and the local leadership team. The move reflects the broader strains on manufacturing caused by logistics disruption and material scarcity that have emerged under the current set of sanctions and countermeasures.

The immediate stopping of collars will impact several well-known beer lines, including Old Melnik from a Keg, Crown of Siberia, and Polar Bear packages. Company sources said the restrictions come as the business faces ongoing economic volatility and a steady stream of new sanctions and retaliatory actions that ripple through multiple stages of production and distribution. These tensions create uncertainty for suppliers, manufacturers, and retailers alike.

Industry groups have confirmed that the supply of label paper has become a growing concern. The escalation is linked to the fifth package of anti-Russian sanctions, which targeted paper, varnish, and paints as part of the broader effort to adjust the supply chain landscape. In response, producers are prioritizing cost containment and process simplification while seeking alternative material sources. The collar removal is intended as a temporary expedient to weather the current market pressures while operations adapt to new realities.

Experts in manufacturing and packaging note that simplifying designs and removing nonessential components can reduce production costs and increase resilience in uncertain markets. At the same time, raw material reserves in European printing facilities could sustain operations for roughly three to four months, assuming supply chains do not tighten further. This window may provide time to pivot toward Asian suppliers or other regional alternatives, though price pressures persist as demand remains elevated in many markets.

By late May, reports emerged from RTVI indicating that Russian beverage producers using Tetra Pak packaging— including juices, wines, and other drinks—were considering a shift to white packaging with a minimal color palette. This potential alteration aligns with a broader trend toward simpler, lower-cost packaging that can accommodate ongoing supply constraints while preserving product integrity and shelf appeal. The changes underscore how brands are balancing regulatory, economic, and consumer expectations during a period of significant disruption.

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