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A '''cup sleeve''' is used to insulate a hot or cold drink. For hot drinks like coffee served in a thin cardboard cup, this is necessary to prevent burns to the hand of the person drinking from the cup. Similar holders are used for cold beverage served in cans, although coldness is less of a problem; here it kepps the hand from getting wet from the [[condensation]] of [[water vapor]] on the can.
In Australian slang, it is called a "stubby holder". [http://aycu10.webshots.com/image/12249/2004071352337507924_fs.jpg]