MONTENEGRO

COUNTRY PROFILE: WATER BODIES AND RESOURCES

Bottled water has become the world's "liquid gold" in the last 40 years. It is a natural product that is made with minimal costs. Montenegro has sufficient rainfall and relatively good protection of its water resources and sufficient ground and surface waters. Consequently Montenegro is not water-stressed. Average consumption in Montenegro is extremely high, and that it is almost twice as high as the consumption in Western Europe (average 150 liters per capita per day). In 2005, 99% of the population had access to improved sanitation facilities and 98.3% had access to improved sources for drinking water (MDG 3) for the same year was 98,3%. The quality of drinking water is regulatory monitored for the

public water supply systems and is defined in accordance with WHO and EU standards. Source: 2007 Speech by Minsitry of Health, Montenegro citing the National Strategy of Sustainable Development of Montenegro (Final Draft May 2006) accessed on the UNECE website ( The speech can be downloaded from the 'Resources and Links' section below )

PRODUCTION OF BOTTLED WATER IN MONTENEGRO AND ITS MARKET SHARE

In Montenegro currently exist and operate six factories for bottling natural water. Among the biggest are: Fabrika Vode Lipovo, Kolasin - Aqua Monte, Aqua Bianca DOO - Aqua Bianca, Suza factory Water group d.o.o. je, Diva Factory EKO PER d.o.o., Monte Minerale Fabrika Bozja Voda, Gorska and others. The total capacity of these factories is about 350 million liters of annual production, which fully meet the needs of the domestic market and achieve significant export. According to data of the Direction of Water Management for 2009, total water production at six factories amounted to 13,812,604 liters. In the domestic market were placed 11,720,980 liters, and 2,091,624 liters were exported. In 2009, Montenegro has imported 40 million liters of bottled water worth about 8 million. Imports of water in 2010 amounted to 7,4 million euros, with the export of 0.2 million in the same period. Practically the imports are 19 higher than exports of bottling water in Montenegro.

According to the data of Monstat (Statistic Institut of Montenegro) (cited by Mina-business agency) in the first quarter of this year (2011) it was imported water in value of 917.8 thousand EUR, and exported 18.5 times less, or in value of 49.2 thousands EUR. The available capacities of water production in Montenegro are not sufficiently used because of the limited consumption and difficulties in placement on the market. A modest marketing approach, especially in international markets, lack of appropriate brands for export, and a large number of small exporters restrict the placement of water, both on domestic and foreign markets. The concessionaire is obliged to pay fees for water use, according to the concession contract under the BOT arrangement for use of water for bottling for commercial purpose (concession - special fee the concessionaire offered to be paid in % from the selling price of a liter of bottled water), fees for use of water in an amount of 0.003 Euros per liter of bottled water or packaged water, and data on the amount produced, and realized bottled water. Water Factory owners indicate the problem in the placement of products on the domestic market often mentioning inadequate treatment by the hotel and retail sectors. The representation of Montenegrin water in domestic retail stores, hotels, restaurants and public institutions should be much higher given its quality and accessible price. The Montenegrin stores are full of water production from the neighbor countries and Europe, as for example: Voda Voda", Rosa", Aqua viva" (Serbia), Jana" (Croatia) , Evian" (France) and others, but the prices are similar to the prices of domestic water. The Montenegrin producers consider that the market tactics of big companies like Coca Cola (Rosa) and Knjaz Milos (Aqua Viva) are close to monopolistic. It is known that the hoteliers, if they want a basic product, they must take the water of the same manufacturer, and the problem is the same with advertising material, such as umbrellas, t-shirts, ashtrays and glassware.

Montenegrin consumers continue to believe that the foreign is better, but with the efforts of the Ministry of Tourism and the Ministry of Agriculture, Forestry and Water Management through the activities of "Offer home-grown, choose quality" and the Montenegrin Chamber of Commerce through the "Good from Montenegro" give some positive results.

Manufacturers of water due to material limitations caused by the method of payment and other barriers in business, are faced with the impossibility of adequate promotion. Also, water-related sales with other products from foreign competition (ex. sale of coca cola) makes complicated the placement of Montenegrin producers. Montenegrin factories meet quality standards (in most factories is certified production) and have the most modern equipment. When it comes to packaging and labeling of products, they can also be competitive and ready to sell its products to the European market. In this connection it is necessary - Removal of business barriers (double taxation, municipal taxes, pay for waste disposal in the production of certified ISO 14000 ... ...); - Develop a analysis of target markets (for the start of the neighboring countries) and business networking, integrating supply, intensifying the marketing approach and brand creation of Montenegro; - To intensify trade fair participation in the efforts to strengthen the identity of Montenegrin products, Montenegrin participation in the promotion of water in the media, tourist facilities, public buildings, airports...

http://www.portalanalitika.me/ekonomija/vijesti/30206-uvoz-vode-19-puta-veiod-izvoza-.html http://www.slobodnaevropa.org/content/crna_gora_voda_proizvoidnja/2424804 3.html http://www.pobjeda.me/citanje.php?datum=2009-12-06&id=175872 http://www.pkcg.org/index.php?option=com_content&view=article&id=657%3A konstituisana-grupacija-za-flairane-vode&catid=1%3Anajnovije&lang=cg http://www.cafemontenegro.com/index.php?group=25&news=149506 http://aktuelno.me/2011/01/12/flasirana-voda-je-postala-tecno-zlato/ www.monstat.org