Does the handle has texture coordinates and if it has, does the handle's texture differ from the actual image? You can upload the mug model if you want me to have a look at it.
BTW: This image of the mug is very strange for a german, because the part that's readable from "BEACH" reads like "ICH" and that combined with BUMS results in "ICH BUMS", which basically means "I FUCK" in german...