The invention relates to a system and method for forming sleeved containers. The system includes a conveyor for transporting a row of containers, a sleeving unit for arranging sleeves around containers and a heat oven for attaching the sleeve around the container by heat shrinking. The conveyed containers are provided with a sleeve and the sleeved container is transported in the oven to allow the sleeve to shrink. According to the invention, part of the sleeve is removed using a removal unit. The part is removed after heat shrinking. Removing the part allows to uncover part of the container otherwise covered by sleeve.