EBRD to Capitalize VOLI; New Logistics Center Planned

During the recent Consumer Rules Summit 2025, held in Montenegro, Dragan Bokan, Chairman of the Board and founder of Voli, announced that the European Bank for Reconstruction and Development (EBRD) will soon capitalize Voli. This investment will facilitate the construction of a new logistics center spanning 20,000 square meters by the end of the year.

The summit featured a panel discussion titled “Tough Talks – Mission Report: Insights from the Top,” where regional business leaders addressed significant challenges facing their industries in 2025. The discussion, framed as a briefing inspired by the “Mission Impossible” series, highlighted issues such as rising costs, pressures on margins, and the fierce competition that companies face.

Bokan outlined that Voli is currently executing investments worth €75 million, which include five major projects. These projects comprise a large complex in Podgorica measuring 25,000 square meters, a new retail center in Igalu, and additional facilities in Nikšić (8,000 square meters) and Kolašin (4,000 square meters). Each year, the company invests an additional €5 to €6 million in renovating existing stores to meet the increasingly demanding expectations of consumers.

Bokan emphasized three key challenges facing Montenegro’s economy: inflation, labor shortages, and declining productivity. He pointed out the imbalance between the private and public sectors, noting that currently 120,000 people are employed in the private sector compared to 80,000 in the public sector. He stated, “The economy is in a serious ‘sandwich’ situation: uncontrolled hiring in public administration, daily departures of workers abroad, and limited margins that we cannot raise without losing competitiveness. This is, in my 30 years in business, the greatest challenge.”

Despite Voli offering the highest salaries in retail and providing private health insurance, Bokan expressed concern that productivity continues to decline due to labor shortages. He remarked that Voli is the largest producer in agriculture but relies on workers from Albania who come each morning; without them, production would cease.

In the retail sector, Bokan noted that retailers can no longer accept supplier demands without scrutiny. “We cannot keep raising prices daily while watching people leave the market. We will outlast supplier after supplier, trend after trend, price after price. I expect a turbulent 2026 and definitely 2027,” he warned.

In his opening remarks, Bokan thanked the EBRD for the invitation and acknowledged the optimism expressed by Emil Tedeschi, CEO of Atlantic Grupa. He observed that while producers seem more relaxed, retailers are under constant pressure from consumers. Bokan lamented the public perception that Voli is solely responsible for price increases, stating that producers also face significant challenges.

Mihailo Janković, CEO of MK Group, shared that his company is already planning for 2029, indicating that strategic plans are in place. He remarked, “Stability is no longer a given. All events in the region and beyond have affected us. We are also experiencing social protests, retailer boycotts, and blockades, all of which impact overall consumption.”

Janković characterized the current business environment as unpredictable, likening it to preparing for a 100-meter sprint, only to find oneself facing a 400-meter hurdles race. He emphasized the need for continuous investment in people and knowledge.

He addressed investment decisions within MK Group, highlighting that all ideas undergo thorough discussion among team members. One such discussion revolved around a €42 million investment in an alcohol factory, and he also mentioned plans for a new €90 million factory for Carnex, noting the importance of weighing returns on investment.

Emil Tedeschi stressed that producers, distributors, and retailers must focus on determining acceptable pricing limits for consumers. “I am proud of our coffee purchasing team. For the next year, we have already secured 80% of our needed quantities,” he stated. Tedeschi acknowledged the challenges posed by climate conditions and geopolitical uncertainty, which have led to significant price increases in raw coffee.

He emphasized that coffee remains a vital part of daily life, even if consumers may reduce their consumption slightly if prices become excessive. “People may have five coffees instead of six, but coffee will always be a part of their routine,” he concluded.

The panelists recognized that global challenges affect local businesses, and the conversation underscored the need for adaptability in an ever-changing economic landscape. Ljiljana Kunošić, CEO of Bingo Group, noted the ongoing pressures faced by retailers, emphasizing the necessity for quick decision-making and operational adjustments.

As the summit concluded, it was evident that business leaders in the region are grappling with significant challenges but remain committed to finding solutions to ensure their companies thrive in a volatile market.