"Plantaže": STEGA makes incorrect claims, the data speaks for itself

The state-owned company "13. Jul - Plantaže" announced that the NGO STEGA, which, as they say, also includes a former manager of the company, is making numerous incorrect claims about the company's operations.

"We want to transparently and precisely present the true data, which best reflects the situation in the company. Our task and obligation is to communicate responsibly and truthfully with the public, and we would have provided this data to STEGI if they had requested it earlier or accepted the meeting we invited them to," the statement reads.

They say that "Plantaže" under the leadership of the current management has made significant progress in key business segments, "as best evidenced by the positive business result, which was achieved in 2024 after five years."

"By optimizing business processes, as well as a professional and responsible attitude towards the company, in 2024 we achieved the highest level of revenue in the last decade, stabilized costs despite the challenge of rising inflation, inherited tax debts in the millions, and achieved record results," they said.

They said that "the data speaks for itself."

"Sales are growing - The domestic market is growing! Exports are growing! - We can proudly point out that the financial realization in 2024 is the largest in the last ten years and is 1.6 million euros higher than in 2019. Sales in almost all markets are growing. The most significant market of Montenegro is recording a revenue growth of 8%, while the Serbian market is recording a revenue growth of 12%. The total value of exports in 2024 is higher than in 2019," they noted.

They said that Plantaže's sales strategy is focused on increasing profitability and higher selling prices, not on volume sales. "Unlike previous years, when wine was sold at lower prices and without a strategy for increasing brand value, now the goal is to maximize revenue through optimal selling prices, not exclusively through volume sales."

They indicate that sales of premium wines are growing. "In 2024, by 6% in quantity and 17% in financial terms compared to 2019, while sales of cheap-quality wines follow strategic plans and are 10% lower compared to 2019."

They add that revenue from the hospitality industry has increased by more than 20 percent, "which in absolute terms represents an increase of over 0,5 million euros compared to 2023."

They say to invest responsibly, from their own funds.

"We have broken the stagnation and launched a development investment cycle - In the period from 2021 to 2024, more than 7 million euros were invested, and in 2024 alone, investments reached 3 million euros - which is the highest annual amount in that period. All investments were financed exclusively from our own funds, without credit borrowing from commercial banks. Although, thanks to the (in)work of the previous management, we do not have the possibility of new borrowing, we have taken on the responsibility of repaying old debts and this has not prevented us from continuously investing in modernization, equipment and process improvement. This is a clear indicator that, even in conditions of limited financial instruments, one can invest responsibly and work for the benefit of long-term development. Should we remind you that our predecessors used credit funds mainly for current consumption," they state from "Plantaž".

They also say that they have significantly reduced their financial obligations, including debt to banks by 3,6 million euros.

"At the end of 2024, the company's total liabilities were reduced by almost one million euros compared to the previous year, while in the last two years the total debt reduction reached over 4 million euros. We remind you that the total debt to commercial banks, which currently represents a significant part of financial liabilities, was inherited from the previous management of the Company, and that in 2022 it amounted to 23,4 million euros, and today it is 16,5 million euros."

They also add that costs, despite inflation, in 2024 are at a similar level as in the previous year.

Grape yields in "Plantaže", they point out, were higher in 2024 compared to 2023 and with a significantly smaller decline compared to countries in the region.

"As we have inherited many years of neglect of the process of replanting vineyards and 37% of vine plantations are older than 45 years, with a responsible attitude towards this national treasure, we have embarked on the restoration and restructuring of the vineyards and their modernization," they add.

"Plantaže" also points out that, according to official data from the International Organization of Vine and Wine (OIV), global and European winegrowers in 2023 and 2024 are faced with extreme meteorological conditions that include: early frosts, heavy rains in key stages of vegetation, long dry periods... "These adverse climatic conditions have dramatically affected wine production across Europe, with many countries recording significant reductions in production compared to previous years. Climate change is a key factor shaping the current situation in the wine sector worldwide, and Plantaže, like many other wineries, is operating within these challenging conditions."

They say that, "due to irresponsible management and the lack of strategic investments in the previous period," the productivity of vineyards has decreased, and that the application of modern cultivation methods has been made more difficult. After 2014, they said, there was no adequate investment in the restoration of vineyards, adding that everyone involved in this business understands what just one lost year means.

"The current administration is not only not responsible for the problems of the age structure of the vineyards, but has taken concrete steps towards solving them. We have begun more intensive vineyard renewal to ensure long-term production stability, introduced modern technologies for growing and processing grapes, and reduced dependence on seasonal labor through modernization and automation of processes. The results of our work will be seen in the years ahead," they said.

"Plantaže" said that those making the accusations today had the opportunity to prevent this scenario during the period when they were making decisions, "but by their inaction they directly contributed to the problems that Plantaže is facing today."

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

"Total liabilities to the Revenue and Customs Administration amount to 15,4 million euros and represent the largest burden on current operations. With mutual understanding and a common approach, we proposed solving this problem through the valorization of land that has not been used for decades, and is not, and cannot be used for business purposes. On the contrary, it only represents a financial burden, given that additional property taxes must be paid. We expect that in this way we will settle our liabilities to the Revenue and Customs Administration, so as not to jeopardize the further growth and stability of the company.".

They also state that in the period from 2021 to 2024, 0,67 percent of the total value of the "Plantaža" land was sold, generating 5,4 million euros in revenue.

"That this decision was correct is confirmed by the fact that, based on it, we have initiated investments in new plantings, which have been neglected for years, which will increase the productivity of the vineyards and ensure and increase sales in the period ahead. The funds from the sale of the land are used exclusively to repay inherited debts, obligations to banks, as well as current investments."

When talking about selling land, as they said, it is important to emphasize that this is land on which there are not and cannot be vineyards.

"We are not selling off the national treasure. We want to preserve it, improve it, and leave it as a legacy for future generations," they emphasized.

They also point out that "Plantaže" currently has 630 full-time employees.

"In the period 2020–2024, a gradual decrease in the number of employees is recorded, which is part of the business optimization strategy. Comparing total salary costs, compared to 2019, they were reduced by 22%. Comparing 2023 and 2024, costs for regular employees increased by 8%, and the reasons for this are objective and independent of the company's business policy and are the result of: an increase in the calculated value of points by 9% from May 2023, an increase in costs due to the introduction of the obligation to pay for work on Sundays, the entry into force of a new collective agreement in 2024, as well as an increase in seasonal labor costs due to global and market growth conditions in the agriculture and viticulture sector," the statement reads.

They say that there is no political recruitment and nepotism in "Plantaže".

"Everyone who has demonstrated expertise, responsibility and professionalism in their work has found and can find their place at Plantaže. Some members of the former management, who were directly responsible for poor results and multi-million-dollar debts, have been reassigned to other positions. Instead of taking responsibility for previous decisions, some of them have shown an unprofessional attitude towards work, including abusing sick leave and actively undermining the system, which is not in line with the company's values. At Plantaže, work and progress are based solely on work results."

During the period of the former administration, "the value of inventories was calculated in a non-transparent manner" and this, as they say from "Plantaži", was one of the key reasons for receiving a double negative opinion or a qualified opinion from auditing institutions.

"From 2021 onwards, by adopting appropriate regulations and procedures, which rely on International Accounting Standards, the method of calculating inventories has resulted in an accurate value, with this position being presented truthfully and objectively, as confirmed by the clear positive opinions of the external audit and the State Audit Institution, as well as external auditors in previous years. In terms of quantity, inventories grew during 2020 when wine sales were halved due to the corona crisis. Sales growth and economic valorization of wine inventories will begin in 2021, which is their main purpose."

"Plantaža" wines, they add, have won the highest awards at the most prestigious world awards, "confirming not only quality and continuity", but also the company's position as the most recognizable Montenegrin brand.

"At the recently concluded prestigious Mnudus Vini evaluation in Germany, Plantaža wines achieved historic success, winning a total of seven gold medals, including two Grand Gold medals and the prestigious Best of Show – Montenegro award. Today, as in previous years, our wines are created by the same dedicated technologists and experts – people who, with their expertise, experience and love for wine, preserve the continuity of quality and authenticity, for which Plantaža is recognized worldwide. Credit also goes to our colleagues in the vineyard, because it is known that good wine cannot be produced from bad raw materials, and that good raw materials are no guarantee that you will end up with a good wine. We have a good team of winegrowers and winemakers who do their job properly."

All this data, they said, clearly shows that the NGO STEGA is presenting incorrect data.

"They know best what their goals are, but it is clear to everyone that they are not about creating conditions for even better business results and preserving and improving the Plantaža brand. If they wanted to, they would have either accepted our invitation for a meeting or requested official information before publishing inaccurate data, and in the end, they had time to show what they know. Without intending to justify themselves to those who were once part of the system that neglected key segments of production, but for the sake of the entire public and our consumers, who have confidence in the largest Montenegrin brand, we consider it important to point out the correct facts, thereby closing the controversy with them through the media. We expect all participants in the public debate on Plantaža's business to present verified data, because irresponsible dissemination of disinformation can only be considered an attempt to undermine the credibility of one of Montenegro's most valuable brands," the statement reads.