Complex code: Tea and coffee producers face supply disruptions due to labeling
Manufacturers have warned about possible disruptions in the supply of tea and coffee due to the unavailability of mandatory labeling. In this regard, the Roschaikofe association appealed to the Ministry of Industry and Trade with a request to postpone the timing of its implementation next year, Izvestia found out. According to the organization's estimates, the cost of a large manufacturer to implement an identification system will range from 100 million to 1 billion rubles. The Ministry of Industry and Trade assures that labeling will not cause price increases and will reduce the share of counterfeiting, which, according to the HSE, reaches 13%. Izvestia investigated whether there are really risks for tea and coffee producers, as well as consumers.
Labeling of tea and coffee
The Roschaikofe Association has asked the Ministry of Industry and Trade to extend the experiment period for the introduction of mandatory Fair Sign labeling for coffee, tea, cocoa and chicory until the end of 2025. On August 27, Ramaz Chanturia, Director General of the association, sent a corresponding letter to Anton Alikhanov, Minister of Industry and Trade. Izvestia has reviewed the document. A representative of the Ministry of Industry and Trade confirmed its receipt.
Roschaikofe is the largest Russian association in the tea and coffee market, founded in 1999. It includes major manufacturers of these drinks, including Jacobs (brands Monarch, Carte Noire, Maxim), Orimi Trade (brands Greenfield, Tess, Princess Nuri, Princess Java, Gita, Princess Kandy, Jardin and Jockey), MAI (brands "Maisky", Richard), "Milfoods" (Poetti brands), Grand (Grand brand) and others.
The experiment for coffee, tea and cocoa producers was conducted from June 1 to August 31, 2025. Starting from September 1, companies must register in the Honest Sign system. The transition to mandatory labeling will be phased in: from December 1, 2025, cocoa drinks will fall under it, from April 1, 2026, teas and drinks based on them will be added, and from June 1, coffee and its substitutes.
Roschaikofe proposes to postpone these deadlines by five months. At the same time, the association points out the need to differentiate the introduction of labeling for different product packages. For example, for tea, introduce it first on cardboard packs with loose product, then on packages with single-use tea bags, and then on tin packages, follows from the letter.
Another proposal is to exclude from mandatory labeling all small—batch packages weighing less than 30 g — the so-called "3 in 1 or 2 in 1 coffee", tea bags in individual sachets and drip coffee. Currently, only coffee drinks weighing up to 18 g are excluded.
Production lines for the production of small-scale products are configured to produce 550 units per minute, and the integrators' technical solutions can print a maximum of 350 codes per minute, which does not allow for the necessary capacity utilization, the document says. These conditions can negatively affect competition and "destabilize the market segment of small-batch products," the letter says.
Manufacturers estimate the cost of labeling each such product at 60 kopecks at a cost of about 10 rubles, for tea bags in individual packaging — from 2 to 4 rubles. Thus, the increase in the cost of goods is more than 6%, and in the case of tea in an individual sachet — from 25% to 40%, calculated in the "Roschaikof". The direct costs of a large manufacturer due to the introduction of labeling are estimated at an average of 100 million to 1 billion rubles, the letter says. The high speed of production creates problems with packaging and coding, increasing the risks of a 10-20% drop in enterprise productivity, the document says.
In general, tea and coffee manufacturers point to long delivery times for labeling equipment, estimated at up to six months. They also point out that they cannot count on preferential loans for the purchase of this equipment, since the tea and coffee industry, which uses 100% imported raw materials, does not fall into any preferential financing program. This forces manufacturers to resort to using high-interest loans, and also complicates the adjustment of investment projects, since company budgets are usually approved a year in advance, the letter says.
Extending the experiment and postponing the launch of labeling will allow manufacturers to "calmly enter the process" and maintain production volumes taking into account new requirements, Ramaz Chanturia told Izvestia. According to him, this will help to minimize the costs of producers. Otherwise, he continues, the unpreparedness of companies can cause disruptions in the supply of products to the market, as well as increase the risks of an increase in the cost of these goods.
The cost of introducing labeling in a segment where margins often do not exceed 10-12% may lead to higher selling prices for products, confirmed an interlocutor of Izvestia in a large tea and coffee distributor. There are many small companies in the industry, and additional investments may be unaffordable for them, he said.
The effect of product labeling
Labeling has already been introduced for 31 product groups and has proven effective in combating illicit trafficking, a representative of the Ministry of Industry and Trade told Izvestia. According to him, during the experiment, "optimal technical solutions" were found, which are required for the implementation of labeling. In addition, during the experiment, the Ministry of Industry and Trade evaluated the possibilities of applying identification tools to various form factors of packaging, the representative of the department added.
"According to the results of the tests, it was found that the dimensions of the package containing more than 18 g allow the identification agent to be applied in compliance with the application quality requirements in order to ensure its reading by technical means," said the representative of the Ministry of Industry and Trade.
According to him, the introduction of mandatory labeling has already made it possible to "whitewash" the markets of packaged water by 78% and dairy products by 24% in 2024 compared to 2022. The Ministry of Industry and Trade does not expect a significant increase in product prices, his representative said.
From June 1 to August 31, 2025, the experiment was conducted on 39 production lines with the participation of more than 30 manufacturers, a representative of the Center for the Development of Advanced Technologies (CRPT), the operator of the Honest Sign labeling system, told Izvestia. The introduction of labeling will not affect the work of tea and coffee producers, he assured.
— Most types of packages for cocoa, tea and coffee are used in other already labeled product groups: dairy products, groceries, animal feed, etc., which ensures the availability of ready—made labeling solutions and does not require long periods of experimentation, - said the representative of the CRPT.
About 13% of the products on the instant drinks market are in illegal circulation, the interlocutor of Izvestia cited data from the Higher School of Economics (HSE). According to him, the introduction of labeling will allow to legalize the market and increase budget revenues by 19 billion rubles. For consumers, this is a guarantee of buying a legal and safe product, and for businesses, transparent and fair competition conditions, said the representative of the CRPT.
However, some manufacturers are talking about a successful experiment. The United Tea Company tested the equipment and technical solutions for applying the Honest Sign codes, the labeling did not affect the packaging line, and production facilities were maintained, Vlada Osipova, the company's marketing director, told Izvestia.
— Coffee is a product with a clear shelf life and seasonal harvest. If we put old and new-vintage coffee in one package, we will lower the quality of the product, and the consumer will not recognize the original taste of fresh coffee. I took part in the labeling experiment because it was important for me to understand how this system works," said Denis Mansurov, Director of Ingresso Coffee.
As added in the CRPT, the business still has enough time to prepare for the introduction of mandatory labeling. The operator of the Honest Sign system will support market participants in this process.
Representatives of Nestle (Nesquik and Nescafe brands) and Grand (Grand coffee and tea brands) declined to comment. Representatives of other major manufacturers of instant drinks did not respond to Izvestia's request.
What are business representatives afraid of?
Previously, other large industry associations opposed the introduction of mandatory "Honest Mark" labeling: the Association of Retail Entrepreneurs together with the organization "Assistance to Small Businesses", the Russian Perfumery and Cosmetics Association, the Association of Fisheries Enterprises of Primorsky Krai (ARPP), the Association of Trading Companies and Manufacturers of Household Appliances and Computer Equipment (RATEK).
Their main complaints were the high costs of implementation, the threat of rising prices and lower profitability, as well as doubts about the real effectiveness of labeling, which, according to them, does not guarantee protection against counterfeiting, but creates an excessive burden on manufacturers.
Market participants assumed that entrepreneurs would find a way to circumvent the rules and sell any products. In May, Izvestia found out that the codes of the Honest Sign labeling system can be purchased for illegal goods, including fakes. In order to improve the system, Deputy Prime Minister Dmitry Grigorenko instructed the departments to work on "eliminating cases of illegal trade in labeling codes," the Ministry of Industry and Trade and other ministries have launched work in this direction.
At the same time, the Ministry of Industry and Trade has prepared amendments to the rules for labeling shoes, perfumes, tires and packaged water, which began to operate on September 1, 2025. The main goal of the regulator is to tighten control over the licensing documentation in the Honest Sign system. We are talking about certificates, declarations of compliance with mandatory requirements, or certificates of state registration.
The introduction of labeling involves significant investments, optimization of logistics chains and rising product prices, said Evgeny Smirnov, Commercial Director of MOLCOM logistics operator. For segments like children's toys, coffee, sports nutrition or building materials, the increase in cost is 8-12%, confirmed by Irina Poddubnaya, founder of the EW Club and an expert in the field of e-commerce.
— Due to the shortage of personnel, the number of operations with each unit of goods has increased in warehouses. Because of this, about 5% of products are mislabeled," said Oksana Lyubivaya, founder and CEO of Prostore Group of companies.
According to her, there were cases when the entire batch was subject to re-labeling.
— We do not predict a significant and even more unjustified price increase due to labeling. The rise in the cost of raw materials, energy resources, packaging materials and logistics has a much more significant impact on the cost of goods. It is these aspects that require constant monitoring and adaptation. Labeling remains a tool that helps make the market more transparent, secure, and competitive. For example, the introduction of labeling for dairy products in 2021, on the contrary, slowed down the dynamics of price growth," said the co—chair of the Digital Committee of the Association of Retail Companies (ACORT) Anna Orlova.
In addition, retail chains are taking measures to curb price increases, and all suppliers' requests for increases are checked for validity, she added.
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