The label on the “Podgorica White” wine produced by the state-owned company Plantaže 13. jul indicates it is bottled in Montenegro, with the country of origin marked as the European Union.

In contrast, all other Plantaža wines identify Montenegro as their country of origin.

What prompts Plantaže to import white wine and market it under their brand?

Plantaže clarified to Radio Free Europe (RSE) that they acquire a certain volume of wine from the EU to maintain a steady supply in the market.

This practice is reportedly common and widespread among countries like France, Italy, and Spain.

Former Minister of Agriculture Budimir Mugoša informed RFE/RL that Plantaže is currently operating at a loss and the quality of grapes is deteriorating:

“They suffered a disastrous year last year. To compensate, they imported bulk wine and are now marketing it as ‘Podgorica White.’ This reflects the decline of the former brand—transforming from a producer to a wine bottling entity.”

Plantaže, recognized as one of the largest producers of grapes, wine, and brandy in Southeast Europe, has begun divesting its properties in response to financial challenges.

What does Plantaže state?

In a written reply to RFE/RL, Plantaže conveyed that new vineyards have yet to reach optimal yield capacity:

“By the time of arrival, Plantaže had sourced part of the necessary white wine, specifically for lower-priced products.”

They also noted that according to the International Organization of Vine and Wine, approximately 33 percent of global wine trade falls under this trade category to complement domestic production:

“The labeling of ‘Podgorica White Wine’ is transparent and clearly denotes the wine’s origin, aligning with applicable regulations. Furthermore, the raw material undergoes strict supervision by relevant state authorities.”

The need for additional white wine quantities is attributed to insufficient investment in the past 15 years for renewing plantations and climatic challenges:

“The unfavorable age structure of some vineyard plantings has been worsened by extreme weather conditions, including hail damage estimated to exceed eight million euros in 2022, particularly affecting white varietals.”

Following a government change five years ago, the management of Plantaže also underwent a shift.

They assert that over 130 hectares of white wine varietals have been planted in the last three years, which will be ready for full harvest soon:

“This will ensure sustainable production and complete independence in all segments.”

They claim top-quality wines are being produced from grapes sourced from Plantaža vineyards.

Former minister claims decline at Plantaže

Conversely, agronomist and former Minister of Agriculture Budimir Mugoša asserts that the company is losing its brand and lacks grapes needed for high-quality wines:

“Plantations can only maintain viability through the production of top-quality wines. The company has 4,000 hectares of land, currently cultivating about 2,000 hectares. Of that, 1,000 hectares consist of outdated vineyards that are entirely unprofitable.”

He attributes this to incompetence within Plantaže’s management, alleging that after 2020, capable personnel were let go, including the chief plant protection technologist.

“No miracle can rescue Plantaže from its business losses, apart from a likely sale,” Mugoša remarks.

Mugoša indicates he has a financial report for 2024 showing Plantaže’s estimated profit at around 300,000 euros.

The report also reflects income from land sales:

“They are divesting state-owned land, which they did not purchase and which was not assigned to the company by governmental decree.”

Additionally, Mugoša claims they reached a positive business balance by calculating before paying land taxes to the municipalities of Podgorica, Zeta, and Tuzi, where the vineyards are situated.

Years of Compounding Problems

The most valuable state-owned company, which produces over 40 types of beverages—including premium wines and grape brandy exported to 42 countries—has faced several challenges recently.

These include financial issues like inherited debt, decreased sales due to the loss of the Russian market, and growing inventories.

Plantaže lost access to the Russian market in 2017 when authorities banned imports from Montenegro.

This ban was enacted just two months before Montenegro’s accession to NATO.

Following a government change in 2020, the new administration disclosed that Plantaže was at risk of bankruptcy, with creditor debts totaling 38 million euros.

The government subsequently intervened with an emergency financial support package of five million euros.

Court proceedings have been initiated against certain Board of Directors members and long-time director Verica Maraš.

In recent years, Plantaže has sought to remedy its financial situation through the sale of several land plots that they claim are not integral to the company’s operations.

As previously reported by the company, approximately five million euros have been generated from land sales over the past five years.

The NGO STEGA raised concerns that Plantaže is planning to sell land that might later be used for residential development.

They reached out to Agriculture Minister Vladimir Joković in March this year, urging him to protect Montenegro’s economic brand.

In their response to STEGA, Plantaže asserted they have stabilized operations, reduced some debt, and initiated vineyard restoration, claiming their current debt has been lowered to around 16 million euros.

Established in 1963, Plantaže is predominantly state-owned, with around 56 percent of shares held by the government and the remainder controlled by various state funds.

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