Montenegro’s retail landscape is experiencing significant changes, particularly as Voli, the country’s largest supermarket chain, enhances its engagement with domestic producers while decreasing reliance on traditional suppliers. This shift is indicative of a broader transformation within the sector.
Data from Voli’s management reveals that turnover from Montenegrin companies within its network has surged 6.2 times since 2010, climbing from approximately €14 million to €87 million by 2025.
The growth in domestic supply highlights a comprehensive restructuring of supply chains rather than mere increases in volume. Local producers are transitioning from marginal roles to more integrated positions within modern retail frameworks, especially concerning fresh products and direct supply agreements.
Sales composition has also evolved significantly. In 2010, traditional supplier brands contributed about 80% to turnover, while private labels made up only 20%. Currently, private label products account for 38% of total sales, with traditional brands’ share declining to 62%.
This shift translates into private label volumes effectively doubling from around €80 million to €160 million, whereas turnover associated with traditional distributors has decreased from roughly €400 million to €240 million.
The impact of this transition extends beyond sales figures. Retailers have gained enhanced control over pricing, margins, and customer loyalty through their private label offerings, which have become a central commercial strategy rather than a secondary option.
This model also transforms supplier relationships. By fostering direct partnerships with producers—often through co-developed or exclusive brands—retailers are minimizing their dependence on intermediaries and large distribution networks. Consequently, traditional distributors face increasing challenges as procurement methods become shorter and cost efficiency takes precedence.
Alongside the rise of private labels, the proportion of domestic production within retail has increased from 16% to 24%, while imports have seen a slight decline.
The ability of local producers to grow their retail turnover from tens of millions to nearly €100 million signifies their improved alignment with contemporary standards in packaging, logistics, and consistency—essential factors for thriving in large retail environments.
This evolution results in a more balanced retail ecosystem characterized by three intersecting trends:
• consolidation of purchasing power among major retail chains,
• expansion of private label markets,
• deeper integration of domestic production into established supply structures.
This development reflects broader trends observed throughout the Western Balkans, where large retailers increasingly function not only as distribution channels but also as active market influencers, shaping production frameworks, pricing approaches, and competitive dynamics across the consumer goods sector.
