The Strategy for a European and Civic Montenegro (STEGA) has addressed an open letter to the Minister of Agriculture, Forestry and Water Management, Vladimir Joković, expressing concern over the alarming state of the company “13. jul – Plantaže,” emphasizing the urgent need for immediate action.

“After receiving numerous reports, STEGA has concluded that the situation at ‘Plantaže’ is critical. We believe it is urgent to act if we wish to retain one of Montenegro’s premier commercial brands. We are surprised by the lack of response from the relevant authorities regarding the company’s operations and the delay in addressing the deteriorating conditions,” said the open letter to Joković, which was shared with the media.

STEGA claims that “Plantaže” holds immense value for Montenegro and should be protected at all costs.

“Many presumed that managing this company would be straightforward, yet this has been disproven by the devastating results and millions in losses recorded year after year. In recent years, political agendas and the distribution of roles based on political allegiance have overshadowed professionalism, leading to the appointment of inadequately qualified management. This misalignment is fundamentally what has caused the company’s current predicament.”

According to STEGA, business analyses indicate a pattern of neglect—including the clearance of hundreds of hectares of vineyards, a steep decline in grape yields, and a reduction in wine production to “historic lows.”

“Additionally, we have witnessed the loss of significant markets, declining sales, staff layoffs, the hiring of often unqualified personnel based on political connections, and a drop in product quality—evident from the decreasing number of awards at prestigious international wine competitions. Operational costs have surged, and technological capabilities have eroded due to nearly non-existent investments in recent times, further damaging the company’s image and reputation in an increasingly competitive wine market.”

All these factors have culminated in years of negative business outcomes, with recent years showcasing multi-million losses.

“This operational strategy has resulted in a significant accumulation of debt owed to the state, amounting to millions, alongside the sale of state-owned land for several million euros to cover financial deficits. We argue that the state has indirectly supported management with tens of millions without producing any positive outcomes,” they added.

STEGA believes that the current Board of Directors and management team are ill-equipped to address the “current crisis” and are “either knowingly or unknowingly” exacerbating the company’s challenges.

“While we are aware of certain individuals keen on the ‘failure’ of Plantaže, we are confident in the existence of a larger group ready to aid in reviving this brand’s former glory and trust,” they stated.

STEGA suggests to Joković the establishment of a crisis team composed of representatives from the relevant ministry, both majority and minority stakeholders, and STEGA, which could “substantially aid in the company’s rehabilitation.”

They remind that the wine industry is demanding, only thriving in countries with suitable climate and grape varieties. “In every wine-producing nation, this type of economic activity is specific, relying on its comparative advantages, as is the case for Montenegro. This perspective should be integrated into the development strategy of ‘Plantaže’ and Montenegrin viticulture. Achieving this necessitates expertise and knowledge rather than political familiarity. Without active state involvement and the expertise of distinguished domestic professionals, success is unattainable. We advocate for a win-win model that positions ‘Plantaže’ and Montenegrin viticulture for victory. Conflicts between parties would only waste time and resources.”

In their communication to Joković, STEGA notes that “Plantaže” has overcome several crises throughout its history, thanks to effective and professional decisions made by state and company managers. “Let’s recall the 1990s during the socialist era, when similar complexes across Yugoslavia faced decline, yet ‘Plantaže’ emerged as a globally recognized entity under state ownership.”

They emphasize the importance of timely intervention in this complex sector and anticipate prompt and effective action from Joković.

They assert that defending ‘Plantaže’ is essential due to its myriad values, including a visionary project enduring for 60 years, supported by the World Bank since 1975, highlighting Montenegro’s potential and values; owning the largest vineyard complex unmatched even by many leading wine nations; possessing an array of indigenous grape varieties; collaborating with top global institutes for their research; contributing significantly to the advancement of Montenegrin wine and viticulture; enhancing wine tourism and the nation’s tourism appeal; reinforcing national security; being Montenegro’s most recognizable brand with a global export reach; maintaining top export income figures within Montenegro; achieving prestigious accolades at key wine evaluations; representing 90% of Montenegrin viticulture; and illustrating that Montenegro can be a self-sustaining and prosperous European story when managed with professionalism and care,” the letter concludes.

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