The state-owned enterprise “13. Jul – Plantaže” has issued a statement asserting that the NGO STEGA, which reportedly includes a former company executive, is making several inaccurate assertions regarding the company’s operations.

“We aim to transparently provide accurate data that accurately reflects the state of the company. It is our duty and responsibility to engage honestly and transparently with the public, and we would have gladly shared this data with STEGA had they requested it earlier or accepted our invitation for a meeting,” the statement notes.

The company claims that “Plantaže,” under the current management, has made remarkable strides in essential business areas, which is evidenced by a positive business outcome achieved in 2024 after five years of stagnation.

“Through business process optimization and a diligent, professional approach, we reached the highest revenue level in the last decade in 2024, while managing to stabilize costs amid rising inflation and inheriting millions in tax debts, achieving record results,” they stated.

They emphasized that “the data is telling.”

“Sales are on the rise – the domestic market is expanding! Exports are increasing! – We can confidently highlight that the financial results for 2024 are the highest in the last decade, 1.6 million euros above those of 2019. Sales are climbing in nearly all markets, with Montenegro’s significant market experiencing an 8% revenue growth, and the Serbian market showing a 12% increase. The total value of exports in 2024 exceeds that of 2019,” they pointed out.

Plantaže’s sales strategy is now concentrated on enhancing profitability and increasing selling prices rather than merely boosting volume sales. “In contrast to previous years, when wine was sold at lower prices with no strategy for enhancing brand value, our current objective is to maximize revenue through optimal pricing rather than solely through volume sales.”

They report that premium wine sales are up as well. “In 2024, sales rose by 6% in volume and 17% in financial terms compared to 2019, while sales of low-quality wines align with strategic plans and show a 10% decline compared to 2019.”

Additionally, revenue from the hospitality sector has surged by over 20%, amounting to an increase of more than 0.5 million euros compared to 2023.

They emphasize that investments are made responsibly using their own funds.

“We have broken free from stagnation and initiated a developmental investment cycle – from 2021 to 2024, we invested more than 7 million euros, with investments in 2024 alone reaching 3 million euros – the highest annual total in that span. All investments were financed entirely with our own resources, without incurring debt from commercial banks. Despite previous management’s (mis)decisions limiting new borrowing, we remain committed to repaying old debts, continuing to invest in modernization, equipment, and process improvements. This indicates that responsible investment can occur even amid limited financial resources, benefiting long-term development. Let us remind you that our predecessors primarily utilized credit funds for current consumption,” stated “Plantaže.”

They have also notably decreased their financial obligations, including a reduction of 3.6 million euros in bank debt.

“By the end of 2024, total company liabilities diminished by nearly one million euros compared to the previous year, with total debt reduced by over 4 million euros over the last two years. It’s important to note that the significant portion of our current financial liabilities stems from the previous management. In 2022, our total debt to commercial banks was 23.4 million euros, which today stands at 16.5 million euros.”

They further stated that despite inflation, costs in 2024 remained comparable to the previous year.

Grape yields at “Plantaže” in 2024 were higher than in 2023, with significantly smaller declines compared to regional countries.

“Due to years of neglect in vineyard replanting processes, with 37% of vine plantations over 45 years old, we have responsibly embarked on the restoration and modernization of these vineyards,” they remarked.

According to official data from the International Organization of Vine and Wine (OIV), global and European winemakers in 2023 and 2024 have faced extreme weather, including early frosts, heavy rainfall during critical growth phases, and prolonged dry spells. “These adverse climatic conditions have severely impacted wine production across Europe, leading many countries to report significant production declines relative to previous years. Climate change is a pivotal factor influencing the current wine sector challenges globally, and Plantaže, like many wineries, navigates these difficult circumstances.”

They pointed out that “irresponsible management and the absence of strategic investment during prior periods” resulted in diminished vineyard productivity, complicating the application of modern cultivation techniques. After 2014, they added, there was a lack of adequate investment in vineyard restoration, emphasizing that anyone involved in this industry understands the significance of just one lost year.

“The current administration is not responsible for the issues stemming from the age structure of the vineyards but has taken tangible steps to address them. We have initiated a focused vineyard renewal process to ensure long-term production stability, introduced modern grape-growing and processing technologies, and reduced reliance on seasonal labor through process modernization and automation. The outcomes of our efforts will become evident in the coming years,” they indicated.

“Plantaže” asserted that those now making accusations had the chance to avert these challenges during their tenure. “By failing to act, they contributed directly to the problems currently faced by Plantaže.”

They also disclosed that in 2024, more than two million euros in obligations were paid to the Revenue and Customs Administration, “significantly more than in previous years.”

“Total liabilities to the Revenue and Customs Administration stand at 15.4 million euros, representing the largest burden on our current operations. Through mutual understanding and a collaborative approach, we proposed addressing this mass through the valorization of land that has remained unused for decades and cannot be utilized for operational purposes. Instead, it serves as a financial burden due to additional property taxes. We hope to resolve our liabilities to the Revenue and Customs Administration in this manner, ensuring the company’s continued growth and stability.”

They report that from 2021 to 2024, 0.67% of the total value of “Plantaže” land was sold, generating 5.4 million euros in revenue.

“The correctness of this decision is confirmed by the commencement of investments in new plantings that have been long neglected, aimed at increasing vineyard productivity and enhancing future sales. Proceeds from land sales are exclusively used to settle inherited debts, obligations to banks, and current investments.”

When discussing land sales, it is crucial to emphasize that this land has no potential for vineyard cultivation.

“We are not liquidating a national treasure. Our goal is to conserve, enhance, and leave it as a legacy for future generations,” they insisted.

They additionally noted that “Plantaže” currently employs 630 full-time staff members.

“From 2020 to 2024, we observed a gradual decline in our workforce, which aligns with our business optimization strategy. Comparing total salary expenses to 2019, we have achieved a reduction of 22%. When comparing 2023 and 2024, expenses for permanent employees increased by 8%, due to objective factors beyond the company’s business policy, including a 9% increase in calculated point values as of May 2023, additional costs from mandatory Sunday pay, the enactment of a new collective agreement in 2024, and increased seasonal labor costs attributable to global and market conditions in agriculture and viticulture,” the statement highlighted.

They reiterated that there is no political hiring or nepotism within “Plantaže.”

“All staff who demonstrate expertise, responsibility, and professionalism have the opportunity to succeed at Plantaže. Certain former management members, responsible for poor outcomes and significant debts, have been reassigned. Instead of accepting accountability for past decisions, some have displayed unprofessionalism, including abusing sick leave and undermining the system, which is inconsistent with our company’s values. At Plantaže, performance and advancement are solely grounded in results.”

During the previous administration, “inventory values were calculated in a non-transparent manner,” which, according to “Plantaže,” was a primary reason for receiving a double negative or qualified opinion from auditing bodies.

“Since 2021, we have adopted suitable regulations and procedures based on International Accounting Standards, allowing for precise inventory valuation, as confirmed by unequivocal positive reviews from external audits and the State Audit Institution, alongside previous external auditors. Inventory levels surged during 2020 when wine sales plummeted due to the pandemic. Sales growth and economic valorization of wine inventories commenced in 2021, marking their primary purpose.”

“Plantaža” wines have garnered top honors at prestigious global competitions, “confirming both quality and continuity,” as well as the company’s standing as Montenegro’s most recognizable brand.

“At the recently held prestigious Mundus Vini competition in Germany, Plantaža wines achieved a historic milestone, securing seven gold medals, including two Grand Golds and the esteemed Best of Show – Montenegro award. Today, as in past years, our wines are crafted by the same dedicated technologists and experts – individuals who preserve the continuity of quality and authenticity for which Plantaža is globally renowned. Credit is also due to our vineyard team because it is well-known that quality wine cannot be made from poor raw materials, and good raw materials alone do not guarantee quality wine. We have an excellent team of viticulturists and winemakers who are committed to their craft.”

All this information, they contend, demonstrates that the NGO STEGA is conveying false data.

“They are well aware of their objectives, but it is evident to all that these do not aim to foster improved business results or preserve and enhance the Plantaža brand. If they genuinely wanted to, they could have either accepted our invitation for a meeting or requested official information prior to disseminating false data; ultimately, they had ample opportunity to substantiate their claims. Without seeking to justify themselves to those who were once part of a system that neglected critical production segments, we believe it is essential to clarify the facts for the sake of the public and our consumers who trust the largest Montenegrin brand, thereby addressing any disputes through media channels. We expect all participants in discussions regarding Plantaža’s operations to present verified data, given that the irresponsible propagation of misinformation is merely an attempt to undermine one of Montenegro’s most valued brands,” the statement concludes.

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