Serbia Monthly December/January 2022/23

Letter from the publishers

Craig Smith

Daryl Fidelak

Welcome to the inaugural print edition of Serbia Monthly - a fresh approach to Eng lish language business news, lifestyle and entertainment wrapped up into a nifty monthly package. While we are in good company with other publications in Serbia and the region, we feel there is room for our take on the ever-developing and dynamic business environ ment in Serbia.

From a strict expat point of view, the community has flourished over the years as Serbia remained mostly open during the pandemic with a growing number of digital nomads settling in the country. Now entire IT, Fintech and gaming development companies from Russia and Ukraine are setting up and moving kit and caboodle to Serbia. Real estate plays an important part, not just with our magazine but with all business in general. Be it from the largest retail developments to warehouse and logistics to office leasing, English remains the language of business.

Sustainability and ESG are at the heart of many debates today. Falling in line with new sustainability demands, trends and regulations, ESG-related aspects are having an in creasing impact on decisions made by investors. This is influenced both by the growing awareness in terms of sustainable development and environmental impact and also by the need to comply with ESG reporting requirements.

More than ever, the consensus across the real estate community is how the industry can tackle the risks presented by climate change, achieve net zero and net positive develop ments and ensure that positive social outcomes are embedded into real estate decision making.

Our real estate partners understand the need for a magazine such as Serbia Monthly and have been on board with us from the beginning. This inaugural edition, along with key points around Serbia, is also being distributed exclusively at Expo Real in Munich.

In addition to real estate, the focus of Serbia Monthly is stories on numerous sectors with a slant to business. With my experience stemming from broadcast media, intellectual property, and the music industry, we will delve into these industries from a Serbian busi ness perspective. For example, not many know Serbia has become a popular destination for Hollywood and streaming platform productions. Or that Serbian music is a major ex port of local and regional culture raking in millions in revenue monthly.

Myself and the SerbianMonthly and EuropaProperty teams are excited you have joined us on our journey and look forward to developing our project, both print and online, with you in mind. On that note, feel free to reach out to myself, or Craig with any comments, or suggestions, or simply to say “hi.”

Take care,

Table of contents

Editorial /2

News in brief /6

Sitting down with the Canadian Ambassador /8

Djokovic winery prepares to serve up an ace /10

A new Era of Living /12

Serbia snagging new investors /14

Belgrade’s hot office market /16

Serbia’s industrial market rising /18

Bambi’s sustainable future /20

Cleaner air for a lasting legacy /22

Corporate philanthropy in times of crisis: from floods to pandemics /26

“She’s Next…” Visa supports women entrepreneurs in Serbia /30

IKEA – designing a sustainable future /32

Do you have a podcast yet? /34

‘Tis the season for sparkling wine /36

Serbia Monthly

Volume 1, Number 3, December-January 2022/23

Publishing House Kitbridge Media Sp z o.o. Kaleńska 5, 04-367 Warsaw, Poland

Publisher Daryl Fidelak daryl@serbiamonthly.com +381 603 440 167

Commercial Director Craig Smith craig@serbiamonthly.com +48 577 100 620

President of the Advisory Board Goran Djoković

Editor David Dowse editor@serbiamonthly.com +381 62 977 6695

Journalists Gary J. Morrell Daryl Fidelak David Dowse Chris Farmer Goran Vojteski Marija Tesić Fidelak

Administration Sylwia Gajda admin@serbiamonthly.com +48 501 091 751

Video Director Yauheni Litvinau support @europaproperty.com

Art Director Daniel Zbroszczyk graphic@serbiamonthly.com

Letters to the editor may be sent to:

David Dowse editor@serbiamonthly.com

Whose dog is it anyway? /38

Lafayette - not for the faint of heart - or taste buds /40

We run this together /42

Walking the walk /46

The long way home /48

Europaproperty announces 2022 CRE award winners /50

Experts see huge Serb potential /52 CEE investment gal a hit /54

Daryl Fidelak, Co-publisher, SerbiaMonthly

Having spent almost two decades as a lawyer and partner in the City of London, Petar Orlic has now joined NKO Partners in Belgrade and will be responsible for international business development.

“Being a key figure at international law firms, such as Paul Hastings, Reed Smith and Watson Farley Williams, Petar brings a wealth of experience to the firm, especially on deals with an international flavour. He will be the interface between NKO and its international clients and partners,” said Djordje Nikolic, co- founding partner.

“As NKO continues with its expansion drive both in terms of quality transactions and fee earners, Petar will also draw on his vast experience to help manage this process,” commented Djuro Otasevic, co-founding partner.

Petar added, “I’ve known Djordje, Djuro and the team at NKO since its inception back in 2009. I am very excited to be part of its further expansion and to be the at the heart of the dynamic business environment in Serbia, here in Belgrade.”

Yet the IMF is currently reviewing econo mic performance, monetary and fiscal policy and considering sign-off on EUR 2.4 bln in fi nancing for Serbia, which ostensibly still has the end-goal of EU accession.

Various reports—including those from Bloomberg—indicated that an agreement has been reached, and that it will likely be signed/implemented as early as December.

That said, the IMF has been more con servative with regard to potential growth than has the Serbian Central Bank, slating GDP growth to come in at 2.5 percent in 2022 and 2.25 percent in 2023—thus the fund’s efforts to convince Serbia to be stric ter with regard to both monetary and fiscal policy. These less optimistic predictions, ho wever, creates still further incentive for Ser bia to shoot for the more affordable finan cing offered by the IMF.

The Serbian government faced prodding by the International Monetary Fund (IMF) Monday, Nov. 2, to induce more stringent monetary and fiscal policy in the wake of slowing GDP gro wth—but this coming with the likelihood of a EUR 2.4 bln financing boost.

Despite being a regional winner with a still-growing economy, Serbia is likely to come in with GDP growth of only 3 percent in 2022—down from 7.4 percent in 2021. That said, Serbian growth is likely to outshine competitors in the Balkans, and will likely come in among the leaders of EU countries both this year and next—in part due to the fact that the West is facing pressure from energy prices in the wake of the ongoing war in Ukraine.

Production and logistics park specialist CTP Serbia announced at the end of October that it had aided German multinational and engineering company Bosch “in extending” their activities in Southeast Europe at CTP Park Belgrade West with a 20,000 square -meter built-to-suit production and delivery location.

“We’re happy to help Bosch, the German multinational engineering and technology company, extend their activities in Southe ast Europe from CTP Park Belgrade West,” the company announced through an on-line post by CTP Serbia. “The 20,000 square-me ter production space was built to suit their needs and delivered on time.”

This is hardly Bosch and CTP’s first coope ration in Serbia or Central Europe, as in July 2021 Bosch leased a distribution center in one of the largest and most sought-after in dustrial parks in the Czech Republic. At that time Bosch noted it would move its opera tions from the Netherlands to CTPark Bor in western Bohemia, where it would have more than 15,000 square meters of lettable area.

CTP announced at the time that it would provide Bosch with a cross-dock, which has the advantage of improved logistics, receipt and expedition of goods.

Renowned British real estate lawyer, Petar Orlic, relocates from London to NKO Partners in Belgrade

IMF set to provide Serbia with EUR 2.4 bln in financing

CTP Serbia aids German engineering company Bosch in “extending” activities in the region

Serbia and Kosovo edged closer to full po litical meltdown over the Nov. 4-6 weekend, with Kosovo forcing the issue on license pla te registration for Kosovo Serbs, prompting local protests and the broad resignation of ethnic Serbs from local institutions—with this concurrent with a rejection of a French and German plan to eventually recognize Kosovo independence.

With regard to protests in Kosovo, ethnic Serbs hit the streets in the thousands, de manding that their rights be protected and that persecution against ethnic Serbs stop. At the same time, Serbian President Alek sandar Vucic stated that Serbs were com mitted to a diplomatic process, but Director of the Office for Kosovo and Metohija Petar Petkovic at the same time made it clear that moves by Kosovo Prime Minister Albina Kurti to force the issue had in essence ended the Brussels agreement on cooperation, At the heart of the protests is a demand by Kosovo that ethnic Serbs in the country replace Ser bian license plates and eventually personal IDs with Kosovo documents. This is seen as a de facto recognition of Kosovo independen ce, which has long been rejected by Serbia.

This is not the first such attempt to force the registration issue, with each decree re sulting in sharp protests and condemnation from Serbia. At the same time, the EU and the US have pressed hard for Serbia to reco gnize Kosovo, although reportedly the US did also pressure Kurti to back off of a No vember deadline for document exchanges.

With regard to the latest move, Petkovic added that Kurti had “crossed a red line” and that Serbs were both unified and “very up set,” according to Serbian news reports.

Serbian Minister of Foreign Affairs Ivica Dacic meanwhile pointedly rejected a Ger man-French plan to recognize Kosovo inde pendence, implying that Serbia had been blindsided while showing good faith in pushing for constructive negotiations.

The culmination of the above—for the time being—appears to be a decision for ethnic Serbs to resign en masse from Kosovo public institutions, which is a decision clearly

also backed by Vucic. Highly relevant—and what is guaranteed to become a sore point for the EU—is that reportedly said resigna tions came upon orders from Belgrade. At various points over the past few months the EU has seemed to tie both Kosovo indepen dence and sanctions against Russia to even tual Serbian EU accession.

Now with continued protests guarante ed, this is again in question. And although Vucic has appeared to call for such protests to remain peaceful—the risk of violence and at least local conflicts between ethnic Serbs and Kosovars is high. So high that, according to Kosovo online, NATO Deputy Secretary General Mircea Geoana called for dialogue and peaceful resolution, but added that KFOR forces are “ready to intervene” in order to prevent a wider conflict.

Photo by: http://en.wikipedia.org/wiki/ User:Nick_Macdonald., CC BY-SA 3.0 <http:// creativecommons.org/licenses/by-sa/3.0/>, via Wikimedia Commons

German component manufacturer Gruner opened a new production facility in Vlasotin ce, according to both Gruner and the Serbian Development Agency/www.ras.gov.rs.

“Management of [sic] Gruner along with the president of the Republic of Serbia, Mr. Aleksandar Vučić, H.E. Ambassador of Germa ny to Serbia Anke Konrad, and other officials, has officially opened the factory in Vlasotin ce,” the agency said in a statement. “With this new production facility, Gruner has expan ded its production capacities from 7.000 m2 to about 11.500 m2.”

The statement noted that the company currently employs approximately 750 per sons, and that “just in the last project [it] invested more than EUR 23 mln.”

Gruner CEO Martin Schpreizer noted the organic development of the plant with 30 persons.

“We started with 30 employees, and in the opening of the new plant we have invested EUR 23.1 mln,” Schpreizer said.

“We are leaders in technology and set standards that will be demanded in the indu stry,” Schpreizer noted. “From now on ‘Gruner Serbia’ will be our leading production plant of injection molds and mechatronic systems.

MPC Properties announced at the end of October that the developer’s latest project, the 8,300-square-meter TLD Belgrade office building, is now “open for business,” in accor dance with earlier statements that it would come on line this year.

The A-class office building encompasses nine floors and an underground parking garage and is located at the corner of Kneza Milosa Steet and Kraija Aleksandra Boulevard next to Parliament in Belgrade’s old town.

MPC Properties is now reportedly the lar gest developer and real estate management company in Serbia with both office and reta il properties, including USCE Shopping Cen ter, BEO Shopping Center, Mercator Center Belgrade, IMMO Outlet Center and the USCE Tower One, USCE Tower Two business cen ters and the Navigator Business Complex.

“The key to success is people,” he conti nued. “We value people who take steps and responsibility.”

President Aleksandar Vučić stressed that Serbia “appreciates” investments from Ger many and considers this country a key eco nomic partner. He added that he is proud of the fact that the trade exchange with Germa ny this year will reach EUR 7.2 bln.

“I am happy to be here in Gruner for the third time and we have good news every time,” Vucic said. “This factory is important for the Jablanički district, the south of Serbia, and the entire country.

“Dual education is what makes you viable and what makes you progress,” Vucic conti nued. “These things changed people’s lives and make life easier here. When people have a job and can stay in Vlasotince, that is the progress of Serbia.”

Kosovo PM Kurti plays hardball; Serbia says Brussels deal ruined, KFOR ready to intervene

German component producer Gruner opens new Vlasotince production plant with EUR 23 mln investment

TLD Belgrade office building now “open for business,” says Serbian developer MPC Properties

“Shared values and commitments” -an interview with Canadian Ambassador to Serbia Giles Norman

SerbiaMonthly had the honor of speaking with Canadian Ambassador to Serbia, Montenegro and North Macedonia Giles Norman. In an in terview with Serbia Monthly publishers Craig Smith and Daryl Fidelak the diplomat addressed a wide range of issues, including business development, mineral and mining activities and trade with Canada.

SM: Mr. Ambassador tell us about your career and how you can to this position as ambassador.

GN: Following the completion of my studies (BA Hons, Lancaster University, 1990; LLB, Queen’s University, 1996) and having been called to the Bar of the Law Society of Ontario in 1998, I joined the Department of Foreign Affairs and International Trade of Canada in 1999. Overseas assignments took me to a number of places, including Anka ra, Colombo, Oslo, New York City, and now Belgrade. Between postings abroad I held a series of posts in the Legal Bureau of the Global Affairs Canada, was deputy director of the Maghreb and Persian Gulf Division, and most recently, executive director of the De fense and Security Relations Division. I start ed my duties as the Ambassador of Canada to Serbia, Montenegro and North Macedo nia in 2020.

SM: What are your plans and goals that you would like to attain while you are here

GN: Canada and Serbia share commit ment to many common goals and values, including the advancement of democratic values, human rights and social inclusion. With our local partners from the govern ment, the civil sector and the business sector our embassy aims at improving cooperation in commercial, cultural, defense and political spheres.

One of my key commitments is to support the strengthening of trade and investment ties, and I am glad to see that several Canadi an companies, such as Magna International and Molson Coors, have long history of in vesting in Serbia. My team and I work hard to support expansion of the commercial ties and I hope to see more successes in the next year.

GN: Canada is a global mining leader and our economic presence in Serbia is mostly recognized through this industry. Several mining and exploration companies from Canada are developing their critical minerals projects in Serbia and have so far invested more than USD 200 mln here. We also have a list of Canadian mining suppliers that co operate with local companies in Serbia by transferring technology and know-how.

One of the priorities of my time in Ser bia will be to use people-to-people links to broaden and strengthen the relation ship between Canada and Serbia. There are 97,000 Canadians who self-identify as being of Serbian origin. However, this number is probably higher, as we assume that many Canadians self-identifying as Yugoslavs are likely of Serbian ethnic origin. Our friendship is evident at many levels.

SM: What opportunities do you see for Canadian businesses here? In which sec tors would you like to see more invest ment?

Critical minerals will be an essence of the global sustainable development and we see that many nations are looking for reliable sourcing around the world. Recently, Cana da and Germany signed several cooperation agreements, including on sourcing critical minerals from Canada to German e-vehicle producers. Serbia, being at the gates of the EU and rich in critical minerals, can poten tially be a very important partner to the in dustries such as automotive and renewables, and we are glad that Canadian companies can contribute to that with their critical min erals projects.

But beyond the mining industry, Canada and Serbia share many fields of potential co operation. Both of our countries have com mitted to climate-change mitigation and adaption under the Paris Agreement. Cana

Giles Norman - HOM Canadian Ambassador to Serbia, Montenegro and North Macedonia

“Critical minerals will be an essence of the global development, and we see that many nations are looking for reliable sourcing around the world.”

da is committed to lead the fight against the negative impacts of global climate change by reducing carbon pollution and the use of fossil fuels in mid-term.

This will request further development of technology and know-how in the field of renewable energy sources, nuclear energy and mobility in order to decarbonize some of the industries that are the biggest pollut ants, such as the electricity production and transportation. Canada’s experience in areas such as decarbonization of district heating systems, introduction of large solar plants and wind farms, as well as development of the nuclear energy introduction with a focus on Small Modular Reactors, can add value to Serbia’s goal of reducing carbon-dioxide emissions by 2050 and coping with increas ing problems with air pollution. All of these areas have great potential for bilateral coop eration in trade and investments.

SM: Are you happy with the current trade between Canada and Serbia? What sectors can be improved?

GN: Overall bilateral trade between Can ada and Serbia is seeing an upward trend, totaling CAD 141 mln in 2021. This is the best result in the recent history of our bilat eral trade, and I am proud of that, but one of our mission’s mandates is to contribute to increasing the value of our bilateral trade, es pecially with a focus on supporting Canadian business exports to Serbia.

I really think that the opportunities for the exchange in goods, but also services, are wide. From mining and clean technologies,

to fintech and aviation industry, we are seeing increased interest by Canadian com panies in pursuing commercial opportuni ties in Serbia. Vice versa, Serbia’s agriculture sector is very interesting to Canadian import ers, as Serbia has a great global reputation for the quality of its food. We will continue working strongly on supporting this interest in expanding cooperation and would invite all the interested businesspeople from both Canada and Serbia to contact our embassy’s Trade Department for support.

Norman, Canadian Ambassador

North Macendonia

“Canada is a global mining leader, and our economic presence in Serbia is mostly recognized through this industry--several mining and exploration companies from Canada are developing critical minerals projects in Serbia and have so far invested more than USD 200 mln here.”

--Giles

to Serbia, Montenegro and

Djokovic winery all set to serve up an ace

Following several decades in the wilderness, Serbian winemaking has bounced back to the fore with a number of independent vineyards producing increas ingly varied and refined wines of both red and white varieties that have already established Serbia as a current and future European powerhouse.

Against this background there is also a name that goes beyond just wine, that being “Djokovic” of tennis sensation Novak Djokovic fame, as Goran Djokovic, uncle of the world’s most famous tennis star, has now tagged the Djokovic name to the taste of Syrah and Chardonnay grapes grown at his vineyard close to Topola, in the wine-pro ducing area of Šumadija, in Central Serbia.

The new venture, The Djokovic Wine, benefits from a wine-making history going back to the times of the Romans, who found that the fertile and mixed soil types of the rolling hills—not to mention the variety of micro-climates—provided the prefect con ditions for wine production.

In fact, viticulture and history in the region are inextricably linked, going back to Karad jordje, the leader of the First Serbian Upris ing against the Turkish Ottomans in the early 1800s, as well as to his son, Prince Alexander, who famously had a wine cellar in nearby Oplenac.

“In one sense, we are not starting anything new here,” said Djokovic. “We are continuing a Serbian tradition that goes back centuries.”

An extended awareness of time is a com mon trait among wine-makers the world over. For wine making is a subtle combina tion of science and art with perhaps a touch of added magic. In short, wine making can not be rushed.

by David Dowse

“Since we planted the vineyard seven years ago, we have been slowly and care fully developing our wines until we are now approaching the high standard we want for the wines we will soon release commercially in Serbia,” said Djokovic. “During this time, we were faced with many difficult challenges, but I think it’s obvious that very strong de termination runs in our family’s blood. With passion and commitment, all the obstacles have been overcome.”

In another parallel with his nephew’s re markable sporting success, Goran Djokovic places great emphasis on the team he has built around him.

“When Novak works his magic on the ten

nis court he has a wonderful team behind him, and I know this means a lot to him,” Djokovic said. “The same is true at the win ery. We have taken time and great care to find the best people to join our team, and chemistry and passion is equally as impor tant as technical knowledge. We are a family all dedicated to the same goal: to produce the very best results possible from our soil, our grapes and our work.”

Djokovic added some valuable advice for the many new entrepreneurs who are start

ing businesses all over Serbia, especially in the craft foods and beverages sector.

“Whatever business you’re in, you will cer tainly face many tough challenges,” he said. “Some you may be able to predict; others will catch you completely by surprise. The people who survive and hopefully go on to thrive are those who have the strength of character to keep going even when all the odds seem against them.

“This is the Djokovic way,” he added. “How many times have we seen Novak two sets down and go on to win yet another famous victory? You have to dig deep, find your core strength and keep going. You cannot fail in any business, or in life, unless you give up. Giving up is simply not in the Djokovic dic tionary.”

The Djokovic Wine selection was well-re ceived by connoisseurs and industry leaders at a recent low-key, VIP launch at the “Wine Vision’” event in Belgrade. Although he him self does not drink alcohol, Novak Djokovic rarely misses a chance to support his family and promote the best of his country, and he appeared at the event to wish his uncle and the team well with the venture—caus ing quite a stir in the normally quiet tasting room.

Of course, nobody in the wine world can rely on just a name to carry them—no mat ter how famous the name may be. Here it should be said that Goran Djokovic was very satisfied with the reception of both the red

and white Djokovic wines at the tasting.

“Our wines were very well appreciated at the event” he said. “We will shortly go ahead with the commercial release of our wines in Serbia and the world.”

Yet wine lovers in the rest of the world may have to wait a little while longer to taste the Djokovic wines.

“Our production is only about 40,000 bot tles per year,” explained Djokovic. “It’s about quality, not quantity. Serbia is our first prior ity of course and I think the demand will be strong. We’ll see how it goes after that.”

As Serbia’s wines have developed so has the demand among customers, with wine bars popping up in Belgrade and other cities around the country.

“Many people are enjoying good wine and we’re sure our wines will find their place on the market,” Goran added.

But like his most celebrated family mem ber, Goran and the Djokovic winery will nev er be satisfied with resting on their laurels, no matter how successful their first serve becomes. The winemaker plans to continue refining the current Syrah and Chardonnay range, Djokovic is also hoping to expand with a sparkling wine in the future.

NEW ERA OF LIVING

DUŠICA GAKOVIĆ, Novi Dorćol, Project Lead

The Deka Inženjering inve stment company has set new standards in the real estate market with the de velopment of the A Blok complex in New Belgrade, while the residential and commercial complex Novi Dorćol, with its second phase to be completed in De cember 2023, takes things a step furt her. They have created a new vision of luxury and comfort in the centre of Bel grade and provided the Serbian capi tal with a fully authentic concept of li ving. Dušica Gaković, the company Pro ject Lead, explains what makes their projects unique, setting them apart from others.

How does Deka Inženjering manage to respond to the growing needs and wishes of modern buyers?

— I can freely say our company is moving boundaries and setting new standards in construction. Despite being located in the centre of Belgrade, near all current

SECOND

happenings, Novi Dorćol is an oasis of modern, quality living, and provides its residents with a refuge from the hustle and bustle of the city. The first phase, with 225 apartments and 15 commercial locales, opened its doors to residents in July 2021. The second phase covers 347 apartments with spectacular views of the city core and Danube, offering an unusual living experience, where pe ace, comfort and safety are imperati ve. This project has proved that we are continuing with the trend started with the construction of A Blok, and that in the future we will build exclusive resi dential and commercial complexes in premium locations.

THE

PHASE COVERS 347 APARTMENTS WITH SPECTACULAR VIEWS OF THE CITY CORE AND DANUBE, OFFERING AN UNIQUE LIVING EXPERIENCE

Residential & Commercial Novi Dorćol complex

What would you underline as the key advantages of Novi Dorćol?

— Novi Dorćol is in fact a new age of li ving. Located in the very heart of the old town, in the vicinity of city and cultu ral events, living in the complex provi des a cosy life in an urban environment. The complex fully follows the needs of a modern lifestyle, starting from a mo dern organisation of the residential spa ce, through the technically most advan ced heating and cooling systems, smart home systems, facades and inner clad ding, sound and thermal insulation, to implementing the highest standards in design and construction. A beauti ful green exterior with the reconstru cted building of the Canvas Factory will be turned into an exclusive restaurant and pedestrian zones will be enreached with a fountain and columns from the old factory. By introducing these inno vations we have achieved a high level of satisfaction among all our residents.

What additional benefits would you highlight?

— The residents have retail and servi ce facilities in their immediate vicini ty, along with a children’s playgrou nd, many restaurants and cafés, and also an underground garage with 782 parking spots, over 70 of these equi pped with their own electrical char gers. The complex also contains one of the most beautiful spa centres in Ser bia, extending over 800 square me tres, containing a pool, gym, sauna, steam room, salt room, and an exteri or “zen garden”. Furthermore, we fir mly believe this will become a new pe

destrian zone in this part of the city, especially due to the planned Linear Park, being built along the very edge of the complex.

How did you manage to connect the spirit of old Belgrade with innova tive construction and design ideas?

— Our goal was to preserve the memory of the industrial history of the site. Ele ments of the old 19th-century Canvas Factory were fitted into the modern re sidential complex. The brick building from 1897, that used to be a textile fa ctory, will be turned into an unique lo oking luxury restaurant. This has pro duced an urban edifice full of prestige that carries within it the culture and tradition of old Belgrade. Fragments of the past and of today live together in side of it, and its value will be far gre ater during the coming years. This is why Novi Dorćol is the perfect choice for contemporary lifestyle.

THIS URBAN EDIFICE IS FULL OF PRESTIGE THAT CARRIES WITHIN IT THE CULTURE AND TRADITION OF OLD BELGRADE.

View to the pedestrian zone

Old Canvas factory – New exclusive restaurant

Original 19th Century brick walls implemented in the new modern facade

Downtown Wellness in Novi Dorćol

Serbia, SEE snagging local and institutional investors

by Gary J. Morrell

Serbia, Bulgaria, Croatia and the wider SEE region are continuing to attract local capital, as well as a growing number of international developers and investors. From an investment perspective, well-conceived projects offer a yield premium on the established CEE and Western European markets, albeit with potentially more expensive financing and a low supply of available investment-grade as sets compared to the more established CEE markets. However, the investment market over recent years has been negatively impacted by COVID-19, and sub sequently, the economic and political uncertainty caused by the war in Ukraine.

“All commercial sectors have been quite active, with the largest share attributed to the office sector, especially in emerging mar kets such as Serbia and Bulgaria. The invest ment markets are expected to level up simi larly to 2021, which is still below the volumes achieved in 2016-2018. The major drivers for investment will be the four core markets, drawing most of the attention, especially Serbia, Croatia and Bulgaria,” said CBRE on prospects for the investment market.

As with other European and CEE invest

ment markets, Serbia and SEE investment volumes are impacted by the caution being exercised by investors due to the problemat ic economic and geopolitical environment. CBRE has estimated that total SEE invest ment volumes will be below the €1 billion level. The SEE markets peaked in 2018 when total investment volume approached €1.4 billion.

CBRE see all commercial sectors in SEE (Serbia, Croatia, Bulgaria and Slovenia) as quite active with the largest share attributed

to the office sector for 2021. This was large ly due to the acquisition of the GTC office portfolio by the Hungarian investor Indotek Group. Investment volumes are expected to be similar to 2021 at around €950 million, which is still below the volumes achieved in 2016-2018.

Indotek Group made a decision to pur chase the GTC Belgrade office portfolio for €267.6 million. The agreement covered the sale of 11 buildings within five business parks with a total of 122,000 sqm GLA, located in

Indotek Group purchased GTC’s Belgrade office portfolio for €267.6 million

the New Belgrade business district, effective ly the CBD of the city. On completion, the deal will become one of the largest real es tate transactions in the last five years on the SEE market, according to analysts. Demand for easy-to-lease office products is expected to rise further. The key criteria with regard to office acquisition are seen as location, tenant mix and ESG according to analysts.

The deal is part of a wider trend for do mestic investors to conclude acquisitions in other markets, in part due to limited possi bilities in their own. Indotek Group has been present in its domestic market for almost 25 years. In the last decade, the company start ed to expand outside of Hungary, resulting in the group being active in 10 countries today.

“We have been looking for the opportu nity to enter the Serbian market for a long time, and with the current transaction, we are able to significantly strengthen our po sition in the region. I am particularly proud that our first transaction in Serbia makes us one of the most dominant participants in the Belgrade office market,” commented Dániel Jellinek, founder and CEO of Indotek Group, on the transaction.

CBRE has traced investors currently active in Serbia to be split between local investors which have become more active in the past 24 months, and investors which are also present across CEE, such as AFI Europe, GTC, BIG CEE, Indotek, and Immofinanz. Institu tional investors such as Generali, Grawe, and VIG are also becoming more active.

“We have seen increased interest from in stitutional investors, mostly insurance com panies who have acquired office products all across SEE. We expect this trend to continue going forward as all SEE markets are show ing stable real estate market dynamics in the years to come,” said Zoran Danilovic, associ ate director of SEE Capital Markets at CBRE. “Investors are still looking at developing in the retail and office sectors across the coun try, while the focus will also be more directed toward the speculative industrial sector.”

The office development cycle is seen as quite strong with 220,000 sqm currently un der construction or refurbishment, but the increase in demand will overcome the risk of any significant changes or oversupply as the office market lies on strong fundamentals, according to CBS International, part of the Cushman & Wakefield Group.

In addition to office, the logistics market has been attracting investors as is the case elsewhere in the CEE region. Due to the lack

of modern industrial space and growing de mand, the sector could become the main driver of investment activity, particularly in Serbia and Bulgaria.

CBRE has traced a 100 basis point reduc tion in yield in the industrial sector over the past year as the sector has seen intense ac tivity. Regional industrial park developers and operators such as CTP are now under taking projects across Serbia and Bulgaria after a period when such companies were reluctant to enter the market.

Investors are also showing an interest in retail portfolios with a high demand remain ing for shopping centres and retail parks in the capitals and the regions.

A significant attraction of Serbia and SEE investment markets is the yield premium they provide for increasingly higher-quality assets. CBS international put office yields for Belgrade at 7.5-8.5 percent and industrial at 8.5-9.5 percent. CBRE estimate that prime Belgrade office yields are at 8 percent and prime industrial yields at 7.75 percent.

In the current environment, the availabil ity and cost of finance remain an issue for investment in SEE, as is the case across the CEE region. In the past investors have been concerned over whether the price of prod ucts and finance justifies the greater risks in the markets.

“There is definitely a turbulent time ahead of us, given the increasing finance costs as well as supply chain disruption which is still in the process of stabilisation. That being said, the market is ready to absorb new prod ucts. However, it still remains to see how the financial markets will behave in the next 6-12 months. An increase in financing costs is one of the issues investors are facing in the short to midterm. This is not specific for SEE, but rather exists on a European and global level,” concluded Zoran Danilovic.

ZORAN DANILOVIC Associate Director, SEE Capital Markets, CBRE

“So far volumes recorded during 2022 have noted a downtrend when com pared to the corresponding period in the previous year. With new challeng es rising across Europe, investors have increased their caution, which caused the postponing of deals in the pipeline. Therefore, investment volumes for 2022 are not expected to surpass the previous year. Looking at the market conditions across SEE and the returns investors are generating, we believe SEE markets will continue their expansion across all seg ments. We also believe that this will at tract new investors, especially the ones who are in search of higher yields, in order to align with their cost of capital.”

GTC Green Heart in Belgrade

Strong delivery seen in the 2022 Belgrade office real estate market

by Daryl Fidelak

An increasing number of office projects are being delivered in Belgrade, bring ing class A and B office stock to more than one million square meters, according to CBS International, part of the Cushman & Wakefield Group. Although office development activity is gaining momentum, this is from a low base as Belgrade has one of the lowest densities of office space for its population in Europe.

Previously the overall vacancy rate in the city stood at close to zero percent with qual ity office space very difficult to source with Belgrade not having experienced an office development boom with the arrival of com panies looking to establish SCCs, as occurred in other Central European capitals.

“After two years of living under aggravat ing circumstances due to the pandemic, the Belgrade office market experienced a total recovery by the end of 2021 in terms of both supply and demand, while a large number of companies returned to offices and even expanded their requirements,” said Tamera Kostadinovic, head of research at CBS Inter national for the Cushman & Wakefield Group.

In the largest recent opening, the highrise Beogradjanka building has been re developed into the 23,000 sqm Palata Be ograd by the established Serbian developer, Marea Properties. A further 215,000 sqm of office space is under construction or refur bishment out of which 51 percent is being developed in the CBD on the New Belgrade side of the river while 44 percent is being de veloped in the historic Old Belgrade area of the city, according to CBS International.

This confirms the ongoing demand for of fice space in the city centre where there was previously high demand but a very low sup ply of quality space. Due to the very urban nature of this side of the city and the lack of

suitable development sites, the majority of office development was undertaken on the New Belgrade side of the city, and the CBD was established there.

Vacancy in the Belgrade office market stands at 5.5 percent. However, the real fig ure is lower as a significant proportion of va cant space is under reservation. This figure is expected to rise with the substantial amount of space due to be delivered in the coming quarters according to CBS International. The consultancy has recorded an ongoing trend for the rise in demand for office space in the city centre.

On the demand side, a take-up of over 35,000 sqm was recorded in the first quarter

Belgrade has one of the lowest densities of office space for its population

of the year representing an impressive 90 percent year-on-year growth. There was also a 44 percent rise in preleases which stood at 44 percent of the total leased space in the first quarter. The highest leasing activity at 70 percent of take-up was in the CBD in New Belgrade.

Delivery remains strong, as in the second quarter of the year four new office projects were delivered to the market, representing approximately 30,000 sqm of space, accord ing to CBRE.

“The office market in Belgrade is looking strong with a significant number of projects under construction,” said Jana Jovanovic, head of research at CBRE SEE. “Aside from ongoing projects, there have been several announcements, including projects due to be completed in 2024.

“Yet, most projects are situated in the CBD area where a significant number of compa nies is located.”

One of the largest projects currently under construction is by the prolific Israeli devel oper and investor, AFI Europe, includes the 30,000 sqm phase 1 of AFI City Zmaj, which is scheduled to be delivered in the third quar ter of 2023.

Another project by the company is the latest phase of the 30,000 sqm AFI Skyline tower in Old Belgrade, which is set to open by the end of the year. The complex also in cludes retail and approximately 130 apart ments.

Close by, Marera Properties is developing the BIGZ building, the former building of the BIGZ printing works, into a modern office complex.

The protected building and classic ex ample of modern Serbian architecture will deliver 40,000 sqm of office space in addi tion to a revitalised facade, and the interior will consist of industrial-style high ceilings, while at the same time accommodating the requirements of tenants for modern office space.

The EUR 40 mln project has been under taken in partnership with Aleksandar Gradn ja, an experienced residential developer.

“This is our first joint venture and expands our commercial portfolio,” said Milana Sreck ov, CEO of Marera Real Estate Partners.

In the CBD, GTC is building the 17,000 sqm, LEED Gold accredited GTC X office project that is incorporated into the existing buildings on Milutina Milankovica Boulevard. GTC is continuing to develop in Belgrade after having sold a portfolio of its Belgrade office buildings to the Hungarian investor In

dotek Group. The CEE regional developer has been operating in Serbia since 2004 and has developed 120,000 sqm of office space and 35,000 sqm of retail in Belgrade.

On the same boulevard in New Belgrade work on the 16,000 sqm Bridge Plaza com plex is ongoing. Also in the CBD the Ser bia-based Alco Group is developing the 13,500 sqm Alco Plaza.

In Old Belgrade Serbian developer and investor, MPC Properties delivered the long-awaited 8,000 sqm Tri Lista Duvana with nine levels of office space.

In another major project the Serbian Emel group completed the 14,000 sqm phase 1 of Green Escape and is waiting for its first ten ants to move into the complex.

Overall the complex will consist of 66,000 sqm of space in three buildings in a green environment, close to an urban area with di rect access to the city centre. Construction of a second phase will commence after the completion of phase one.

In the centre of Old Belgrade the experi enced developer, Grant Invest is developing the 10,000 sqm Revolucija office complex that is due to be completed at the begin ning of 2023. The complex designed by the Belgrade-based Zabriskie is designed to con nect with the local urban environment with restaurants and retail on the ground floor and an internal atrium.

Concerning demand, the most favoured area is the CBD in New Belgrade, although the urban city centre, the largest residential area of the city is a growing office destina tion. The CBD has traditionally been the most favoured office destination due to the availa bility of space and recent demand has been driven by companies from the IT sector.

JOVANOVIC Head of Research, CBRE SEE

“The office market in Belgrade is look ing strong with a significant number of projects under construction. All com mercial sectors have been quite active, with the largest share attributed to the expansion of the office sector. Activity in the investment market was largely due to the acquisition of the GTC portfolio by the Indotek Group. The office market is set to continue its recovery as more companies begin to encourage a return to the office. The vacancy rate stands at 4.7 percent, supported by robust de mand. Strong occupancy has been not ed in the recently delivered projects.”

Belgrade Waterfront

JANA

Serbia industrial park market booming, bucking the trend

Industrial park operators and developers are increasingly seeing Serbia as an attractive logistics and light industrial destination, as demand for both is evident across the country—and now more and more leading industrial developers, such as CTP and VGP are making a hard push in creating networks and hubs.

“A constantly rising demand has influ enced ongoing construction across Bel grade and Greater Belgrade area, as well as in the secondary cities,” noted Jana Jovanovic, head of research at CBRE SEE, on the logistics sector in Serbia.

“[Likewise], a high occupancy rate has been marked in the previous few quarters, and that trend has been portrayed in the second quarter of 2022 as well, with the most demand being captured by logistics, electronics and the automotive sector,” she added.

On the logistics note, developer VGP is ag gressively developing, and CTP is committed

to developing at least BREEAM Very Good space across its portfolio.

Importantly for the development of the logistics market, the Serbia industrial market is now attracting major regional logistics de velopers and park operators.

“In addition to the already present Czech CTP Group, one of the largest industrial developers in Central Europe, the Serbian market witnessed the recent entrance of the VGP Group, the developers of logistics and industrial parks across Europe,“ said Tamara Kostadinovic, head of market research at CBS International.

The Belgium-based developer is aiming

to develop a large industrial park for spec ulative purposes in the Belgrade industrial zone, Dobanovic. In late 2021 VGP acquired 114 hectares of construction land for the development of a warehouse complex total ling 368,000 sqm,”

CTP finalized the construction of 24,000 square meters of space in its CTPark Belgrade North facility, which will be the largest park in Serbia with area now exceeding 100,000 square meters. The company will soon begin construction of a new 17,000 square-meter facility in the same park.

CTP also finalized the construction of 35,000 square meters in its CTPark Belgrade

CTPark Kragujevac by Daryl Fidelak

West in Simanovci where 20,000 square me ters is built-to-suit for a new Bosch produc tion facility. In the same park CTP will soon begin construction of a 37,000 square meter warehouse space.

Further construction is underway CTPark Belgrade North. CTPark Belgrade North is lo cated on the A1 highway between Belgrade and Budapest and has the potential for 167,000 sqm of space on a 46-hectare site.

The company has also announced the de velopment of a third park in the capital, CT Park Belgrade City, which is planned to deliv er 130,000 sqm of logistics space with high tech facilities in a strategic location close to the centre of the capital. This will be the fifth and largest CTP park in Serbia.

The company regards Serbia as a strategic market and is targeting further hubs across the country. Outside of the capital, CTP has acquired 20 hectares of development land in the north industrial zone of Novi Sad, close to the border of Hungary.

In addition to this, CTP purchased anoth er 11.5 hectares at the intersection of Kacka next to the new Continental factory where CTPark Novi Sad East is being developed with the first 23,000 square meter facility planned to be ready in Q4 2023.

“The Novi Sad park, 90 kilometers north west of the Serbian capital, is emerging as a regional hub for the fast developing electric vehicles sector. The Nidec facility will be built on a site of 60,000 sqm in two phases and

will employ around 1,000 people,” CTP said in a press release.

Such major projects are seen as improving the economy in the local area as well as the Strategic position of Serbia in Europe.

“The new factory will also provide a boost to the local economy with the creation of hundreds of new jobs when the two phases of construction are completed in 2005,” said Dragana Djordjevic, CFO of CTP Serbia, on the positive impact of such regional devel opment projects.

“This also enables companies to locate to cost effectively and easily in CEE locations like Serbia, which are well-placed to serve the neighboring EU market,” she added.

Another regional project the developer is operating is CTPark Kragujevac, which has the potential for 48,000 sqm on a 16-hectare site.

CBRE put total distribution and warehouse space in the Belgrade and Greater Belgrade area at more than one million square me ters. CBS International, part of the Cushman & Wakefield Group, has estimated the total stock of logistics space in Belgrade and its close proximity to come to approximately 2.4 million sqm, from which logistics stock accounts for 70 percent of the total indus trial supply.

If Stara Pazova and Pecinci, both close to Belgrade, are excluded, Belgrade has a lower total (1.2 million sqm), out of which 67 per cent is logistics and warehouse space.

Industrial supply in the Stara Pazova in dustrial area comes to 700,000 sqm with 54,000 located in Pecinci. Total stock in Ser bia stands at a little more than 5 million sqm, according to the consultancy.

In the first half of 2022, 105,000 sqm was delivered to the Belgrade industrial market according to CBS International, from which 35 percent was developed on a speculative basis.

SerbianTranfera has delivered a 30,000 sqm facility in Nova Banovci, which is avail able for lease, and the Serbian and SEE de veloper, Delta Real Estate has completed a 16,000 sqm warehouse facility at Nova Pa zova.

KLP has delivered its third 10,000 sqm distribution centre in Simanovci, a Belgrade industrial hub.

With regard to demand, new lettings (excluding owner-occupied deals) reached 70,000 sqm in the first half of the year ac cording to CBS International figures. Anoth er positive trend in the market is that the proportion of pre-lease deals is increasing, amounting to 60 percent of the total takeup in the first half of the year.

CTPark Belgrade West in Serbia

Bambi – building a sustainable future on solid ESG foundations

by David Dowse

Serbian food manufacturer Bambi has taken into account United Nation Sus tainable Development Goals, focusing on six specific targets for its operations, including reducing CO₂ emissions, reducing water consumption, cutting waste, responsible sourcing, nutritional products, and finally addressing people and communities, according to Bambi General Manager Dragan Stajković.

“For many years, we at Bambi have been looking at our business balance through our contribution to the community where we operate because solidarity and support, as well as investment in a sustainable future, are deeply embedded in our identity and business culture,” Stajković said.

Originally founded in 1967, the Bambi company is without question one of Serbia’s biggest and longest-standing business suc cess stories. Now owned by the Coca-Cola Hellenic Bottling Company (CCHBC), the

basic concepts of sustainability and ESG re main in focus, as in fact, long before these terms were invented the company was built on solid, principled foundations, such as an emphasis on quality and consistency while sourcing local ingredients and maintaining both labour standards and community re lations. This has established the company’s strong reputation as an ethical business and a responsible employer, for which Bambi eared national recognition during the first quality awards handed out in 1979. Moreo

ver, in 1997 it became the first Serbian com pany to attain the international food quality standard ISO 9001.

The values on which Bambi was founded and grew are even more valid and impor tant in 2022, providing an excellent platform for building the next chapters of its story through a strong commitment to sustaina bility.

This is also not an entirely new commit ment, as in 2019, two-thirds of the compa ny’s vehicle fleet was converted to liquid

petroleum gas (LPG), and the current plan is to completely replace all vehicles with more environmentally friendly solutions.

Likewise, in July 2020, Bambi completely switched to the use of electricity from re newable sources in its production opera tions, and during 2021, an impressive 98% of generated waste was recycled, with the company working towards a goal of achiev ing zero non-recycled waste in the produc tion process by 2030.

Stajković also noted that water use was cut by 25% compared to 2017 and a new production line was installed, using cut ting-edge technology, which has thus achieved improved energy efficiency. Do mestic suppliers now make up almost 75% of the supply chain, helping reduce overall emissions from transport, as well as making a positive impact on the domestic economy.

While it is clear that the Bambi company is making good progress with the environ mental aspects of ESG, social engagement has also been a strong factor in the compa ny’s ethos from its founding days, with the company engaging very proactively with its 650-person work force, primarily at the com pany’s main production site in Požarevac, a city of 75,000 in Eastern Serbia. The site has been Bambi’s home since its founding.

Team development has also been a priori ty, as 2021 alone, with hours invested in em ployee education. The resulting team spirit has been reflected in both family events and strong employee response to calls for volun teers when organizing charity efforts.

Bambi has also been particularly focused on attracting and retaining young workers, which is especially important, as Serbia, like other countries in the region, is currently los ing alarming numbers of its best and bright est to emigration. In 2020, more than a hun dred students went through various Bambi youth development programs.

On this note, Stajković noted the impor tance on focusing on community.

“The success of the company is viewed through the prism of the progress of the community where we operate because we know that a healthy, strong, stable and ad vanced community is the only environment where good results are achieved and sus tained,” he said.

In fact, Bambi’s support for the commu nity of Požarevac has been remarkably con sistent, with the company having invested more than RSD 11 in the development of the local community projects in 2021 and hav ing donated more than 14 tonnes of food to

people in need during the past year.

The final pillar of the ESG equation repre sents governance. This refers to principles defining rights, responsibilities and expecta tions of various stakeholders in the govern ance of companies. Here Bambi is now work ing under the CCHBC umbrella and setting an example as a way forward for companies in Serbia with regard to standards in busi ness operations and reporting.

Finally, adherence to high standards has hardly limited Bambi’s success. The company now has a rapidly expanding product port folio and exports to more than 21 countries on four continents, and the Plazma cookie brand has won international renown. In fact, to call it a “biscuit” or “cookie” fails to do the

snack justice, as Plazma has truly become part of the Serbian DNA, beloved by three generations and still found in every young mum’s handbag at playgrounds across the country—as well as in every backpack wher ever a Serb of any age travels. In other words, Plazma is brand loyalty personified.

CWP Europe riding wind, renewables in Serbia

CWP Europe shows the road to a cleaner energy future - and a better way of doing business

by David Dowse

A number of world-wide players have im plemented major investment programmes in renewable energy, with CWP Europe’s wind, battery and solar energy projects al ready playing a defining role.

“Our mission is to lead the energy tran sition in SEE with the development of utili ty-scale, subsidy-free renewables, and our experience and backing makes us perfectly positioned to do so,” said Maja Turković, SVP Development, Europe at CWP Global.

Part of a global group with extensive ex perience, especially in Australia, CWP Europe was founded in 2006 to deliver Renewable Energy Sources (RES) in South East Europe (SEE), and it currently boasts not only the largest onshore wind farm in Europe, but also the 600 MW Fantanele-Cogealac project in Romania, as well as the largest in Serbia, the 158 MW Cibuk wind farm.

Drawing on technical and energy trading expertise gained in Australia and elsewhere,

activities in Serbia and other countries in the region were refocused and revitalised in 2019.

CWP is currently developing more than 2 GW of wind, solar and battery storage projects in Serbia, Bulgaria, Romania, and Ukraine, making the company the leading renewable energy operation in SEE at a piv otal moment in the region’s energy transi tion journey. Once complete, CWP’s 2 GW project pipeline will cut CO2 emissions by up

to 5 million tonnes each year--the equivalent of removing more than one million cars from the roads of the region.

Company representatives have also noted that CWP fully embraces the responsibilities and opportunities for positive change, and that the company is committed to ensuring energy transition is sustainable. In an ap proach that exemplifies the true spirit and intention of the ESG concept, the company ensures its projects contribute in a positive way to the communities in which they are built.

“Care for nature and everyone we work with has been the lens through which all of CWP’s decisions are made,” Tijana Gajić, ESG Lead at CWP Global, told SerbiaMonthly . “We believe that companies should be responsi ble, active, and value-adding members of their communities, and we strive not just to reduce our environmental and social foot print, but to have a transformative broader impact on the regions in which we operate,”

This approach starts with expert environ mental impact assessments at proposed locations. Impact Assessments consider all elements of the local biosphere, ensuring planned wind farms and solar parks cause no harm or disruption to fauna, flora, migration patterns, water flows or other disruption to delicate ecosystems.

This process is in addition to full compli ance with all relevant local and national reg ulations and in line with international best practices.

The “S” in ESG means “social,” and it em phasises the vital importance of local and national communities to the sustainable success of any business. In the age of social media, where news and information—and misinformation—is spread instantaneously, as well as when public opinion can easily be swayed by ambiguous actions and commu nication, companies ignore the social factor at their peril.

In stark contrast, CWP is working hard to build trust and support in the communities in which it is grounded.

“Education is the key,” Gajić said. “We pro-actively educate our communities and the general public on the urgency of taking care for the planet and accelerating the en ergy transition through a variety of comple mentary activities and initiatives.”

The company has also instigated dialogue with local, regional and national government stakeholders to explore ways to support them in achieving their own sustainability goals. This includes advisory and education

with regard to how energy transition will help them financially, socially and in terms of public health.

Through a series of talks and conferences under the umbrella “Vision 2030,” CWP has also developed a series of ecological initi atives promoting the importance of being good stewards of nature.

These are aimed at local communities with the purpose of bringing children and families closer to nature through field trips, outdoor activities, organized hikes and oth

er events that help people reconnect with the natural world around them. The com pany also works to spread awareness of sustainable lifestyles and practices in local communities through lectures, workshops, education at primary schools on topics, such as biodiversity and land and water conversa tion while also supporting youth events to champion and promote sustainability.

“Youth education is one of the most im pactful activities we can invest in to promote long-term, real change,” Gajić added. “We are

working to create local hubs that will com bine environmental protection, culture and education, where local communities can gather, educate themselves and each other and participate in a variety of communi ty-lead activities.”

“Walking the walk” on the ESG journey requires vision, bravery and investment in terms of time, energy and yes, money. It also demands consistency and determination, as well as an unwavering commitment to a long-term plan. But CWP’s Gajić pointed out that the company’s ROI investment is substantial, and that the prize is the active support of local and national communities and stakeholders, as well as a strong corpo rate reputation that attracts the best people as employees and fosters loyal, supportive suppliers.

Yet the reality is that much is still to be done: Serbia depends heavily on high-pol luting, coal-fired electricity generation and district heating plants using outdated, in efficient technologies. This combined with winter weather and the large number of old er, high-emitting trucks, buses and cars and domestic fires burning using highly-sulphur ous brown coal, wood and sometimes even rubber and plastic waste means that Serbia has been laden with some of the worst pol lution found anywhere in Europe. Belgrade has thus in the past--albeit temporarily— reached the extreme levels of the most toxic cities in the world.

The cost to public health is measura ble—as is the unwelcome contribution to greenhouse gases and global warming, not to mention the damage to Serbia’s fragile

international image as it struggles to make a new and well-deserved name for itself as an eco-tourist destination.

Thus Serbia needs to change its energy approach and change quickly. Yet chang es brought by CWP and similar companies goes far beyond much-needed cleaner en ergy. Communities that are better informed on ecological matters may be the current wave’s greatest legacy, and here CWP is working hard for change.

Corporate philanthropy in times of crisis: from floods to pandemics

Solidarity is greatest during times of crisis.

This may sound like common sense, but this is also a truism documented by Catalyst Balkans since the organization began col lecting data on philanthropy in Serbia.

This was clearly evident in 2014 when Obrenovac and other parts of Serbia were faced with devastating floods, and again this was seen during the COVID-19 pandem ic. Yet as obvious as this may sound, when it comes to the corporate sector it appears that there is a lack of understanding with re gard to the importance of the public’s partic ipation in the provision of aid.

This is not surprising since there is no of ficial data on corporate giving--apart from

what is tracked by Catalyst Balkans. Yet, the available data shows that corporate philan thropy in Serbia is an increasingly important pillar of society in times of crisis.

From 2014 to 2021, Serbia businesses have independently donated more than 28 mln to crisis support for pandemics, floods, fires and other natural disasters. Yet as this value refers only to media-reported mon etary donations, the estimated real value of donations is actually at least three times higher.

Two crises comprise the majority of these donations: first there was the crisis in 2014 where in order to ameliorate the devastat ing consequences of the floods in Obreno

by Nathan Koeshall

vac the business sector donated more than EUR 12 mln. Then came the crisis of 2020 and 2021 when it was necessary to obtain much-needed protection against the spread of the COVID-19 virus–with this including the need for expensive equipment for the treatment of patients--and here companies and enterprises donated more than EUR 16 mln.

To be sure, other parts of society also pro vided help, including citizens through grass roots campaigns, prominent individuals, civ ic associations, foundations and others, but specific to corporate philanthropy is that the help provided during a particular crisis often also provides benefits in a crisis’s wake.

TOP 15 CORPORATE DONORS 2014 – 2021

# of recorded donations

Value of recor ded donations

Coca-Cola HBC Srbija d.o.o. 2 1,100,000 €

HIP Petrohemija AD Pančevo 1 1,000,000 € Mozzart d.o.o. Beograd 68 1,000,000 €

United Group RSD d.o.o. Beo grad 1 903,000 €

Delta Foundation 2 862,000 €

MK Group d.o.o. Beograd 26 717,000 €

GlaxoSmithKline doo 1 512,000 €

Philip Morris Operations a.d. Niš 6 489,000 €

Henkel Srbija d.o.o. Beograd 5 453,000 €

Delta Holding 1 450,000 €

Meridian Tech d.o.o. 26 425,000 €

Hemofarm a.d 1 409,000 €

Galenika a.d. Beograd 1 400,000 €

Microsoft Software d.o.o.Beo grad 1 323,000 €

Hemofarm a.d. Vršac 1 281,000 €

Given that the crises required the mobili zation of significant financial capital—in ad dition to human and social capital—compa nies proved that they are not isolated from the society in which they operate by financ ing the purchase of key, high-end equip ment and also by donating to infrastructure projects, with the former remaining in use even after the surmounting of a specific in cident.

The specificity of corporate engage ment is also reflected in the fact that due to a more common strategic approach to philanthropy, corporate help was directed toward public institutions that coordinated both the fight against floods in 2014, as well as the fight against the pandemic in 2020. This revealed that where the crisis situation exceeded state capacities, the private sector had an indispensable role.

Additionally, an examination of philan thropy within the business sector indicates a different level of “crises readiness” by com panies when it comes to fulfilling ESG obli gations. On one hand, a given crisis imposed the need for social engagement while on the other hand, the same crisis had the ability to threaten the capacities of companies to sat isfy their primary functions, not to mention ESG needs. Yet some companies did prove this was possible, and on this note, by recog nizing firms that were successful in both re gards, other companies may be inspired to show support for the communities in which they operate.

Over the last eight years, companies that have stood out the most in terms of dona tion values made for the remediation of natural disasters and pandemics include Coca-Cola HBC, HIP Petrohemija, Mozzart, United Group and the Delta Foundation. Media sources report that these business entities have donated as much as EUR 4.8 mln. In addition, when taking into account the frequency of donations, the engage ment of the Serbian entities MK Group and Meridian Tech stands out, with 26 donation campaigns organized by each.

Observed chronologically, the most ac tivity was registered in 2020—after the outbreak of the COVID-19 pandemic. The pandemic mobilized the business sector in the entire region and in Serbia somewhat more than the regional average. Two out of three philanthropic “actions” covered by the media came from the domain of corporate philanthropy. The largest recorded dona tion for COVID-19 relief was provided by HIP Petrohemija. With a one-time donation of one million euros, HIP Petrohemija helped the national health insurance fund acquire necessary medical equipment.

This initiative was subsequently recog nized by the Ministry of Defense, which pre sented the company with a special plaque of appreciation. United Group also supported the fight against COVID-19 with a one-time donation in the amount of EUR 900,000 that was intended for the benefit of the health system.

Mozzart contributed a record amount as well, but this was done via 68 different do nations.

Bearing this in mind, it should be empha sized and demonstrated how other busi nesses may support the communities in which they operate. Among such donations were included the purchase of respirators, masks, visors, hygiene products and assis

tance packages for the elderly population, as well as assistance to the main health centers in Belgrade, not to mention COVID clinics and centers throughout the country.

Additionally, among the above-men tioned corporations MK Group and Meridian Tech stand out in terms of the number of or ganized campaigns and the amount of aid donated.

Across 26 different campaigns, MK Group donated more than EUR 700,000. Apart from monetary and logistical assistance, MK Group’s philanthropic activities have been distinguished by the fact that the company in quite innovative fashion paid special at tention to healthcare workers in the COVID system.

As a result, many healthcare workers in Serbia, Croatia and Slovenia received three days of respite through hotel stays donated by the company in Kopaonik, Savudrija and Portorož.

Likewise, MK Group provided vacations for 200 Clinical Center of Serbia employees, 50 employees from the Clinical Center of Vo jvodina and also employees of the Niš Clini cal Center.

With the same number of campaigns— albeit with a slightly lesser total value--Me ridian Tech donated more than EUR 425,000 to the Serbian healthcare system. Meridian Tech also helped smaller health centers in the country, such as Surdulica, Loznica, Požarevac, Ub, Negotin, Inđija, Kruševac, Smederevska Palanka, Valjevo, Sopot, Ja godina, and Zaječar.

Through the years corporates, funds and NGOs have provided assistance in the face of natural disasters, both in Serbia and abroad. When earthquakes hit the Banija area in Cro

atia, Fund B92 and the Serbian Philanthropy Forum launched a campaign to support the residents of Banija who lost their homes.

At this time, Elixir Group responded to the campaign with a donation of EUR 30,000 for the purpose of purchasing eight residential containers for temporary accommodation. The initiative was also supported by Messer Tehnogas with three residential containers worth approximately EUR 11,000.

With regard to disaster relief, as previously mentioned, in 2014 the business sector do nated more than 12 mln euros to address damage caused by floods in Obrenovac, with Coca-Cola and Delta Group leading the way.

At that time, Coca-Cola HBC Serbia donat ed a then-record EUR 1 mln for the purchase of sports equipment for schools affected by the floods and thereby also contributed to the quality of teaching efforts in previously devastated areas.

In addition, the Coca-Cola Foundation donated approximately EUR 170,000 for the renovation flood protection infrastructure in Paraćin and Ub.

Similar to Coca-Cola HBC Serbia, Delta Group helped rebuild flooded areas through two channels: Delta Holding and Delta Foundation. The foundation provided more than EUR 860,000 in aid through its Help to Flooded Areas project, while Delta Holding donated more than EUR 450,000 with dona tions of money, food and other necessities, which puts the total participation of the Del ta Group at EUR 1.5 mln financial and non-fi nancial assistance.

Whether in reaction to floods or an un precedented pandemic, aid provided by companies—although predominantly di

rected towards public and government in stitutions—reached end users largely due to help of non-profit organizations. Apart from international organizations, such as UNICEF and the Red Cross, whose primary focus is precisely coming to the aid of the needy in such crises, the Ana and Vlade Divac Founda tion, as well as Fund B92, stood out among domestic organizations.

Both organizations have proven to be important partners for business sector re garding mapping needs and mobilizing and distributing support.

The Ana and Vlade Divac Foundation, in cooperation with the Marbo Product com pany, supplied public kitchens and “SOS Children’s Villages” during the pandemic, and the foundation also became a conduit to provide assistance to many business en tities, while the B92 Fund, together with the Serbian Philanthropy Forum, managed to connect various actors from the business sector, such as Nordeus, Komercijalna banka, Eurobanka, Robert Bosch, Telenor Founda tion and Mobi Bank.

When comparing the socially responsible engagement of companies to the engage ment of other stakeholders in society, re corded data makes clear the extent to which companies are ready to help society in times of crises.

While Serbian adoption of ESG principles in companies is still its early stages, it encour aging is that in times of crises—when reali ties may challenge the state’s capacity to for mulate a full response—the business sector becomes a main conduit of aid and support.

Vuk Vuković is Research and Analysis Man ager for Catalyst Balkans, a philanthropical intermediary organization that tracks philan thropy in Serbia and throughout the West ern Balkans. For more information on giving in Serbia, please visit www.givingbalkans. org. If your company’s donations should be recognized through press coverage, we en courage you to share your data with us via info@catalystbalkans.org

Goran Stevanović, Aleksandra Stojanović, Zlatibor Lončar, Edita Stokić, Jovan Purar

“She’s Next”: Visa supports women entrepreneurs in Serbia

As part of its worldwide commitment to championing women in business, global digital payment technology company Visa has re-launched the “She’s Next, Em powered by Visa” initiative to support and empower female business owners in and aid them in the creation, maintenance and development of business.

The global initiative, which encompasses different approaches tailored to local condi tions, has previously been rolled out in Ser bia, although progress was understandably slowed by the COVID-19 pandemic.

“Although the global pandemic actually accelerated the overall development of en trepreneurship in many countries and also in Serbia, the pace of development of female entrepreneurs locally remains slow and diffi cult,” said Vladimir Djordjević, Visa Southeast Europe country manager.

Visa, however, still sees the empowering of more female entrepreneurs as a business imperative. The company said it will support their growth and success and it is committed

to providing women-owned small business es with tools, resources, insights and net working opportunities that can help them grow their businesses.

Now the innovative program has been relaunched in Serbia where key statistics show there are more than 100,000 female entre preneurs active in a wide range of business areas.

“Visa’s mission is to connect the world through the most innovative, reliable and secure digital payment network, and enable businesses—among other fac tors—to thrive,” Djordjević added. “As a leader in digital payments for more than 60 years, we have a tremendous opportunity

by David Dowse

to enable economic growth and strengthen economies while also helping to improve lives and create a better world. It all starts in the local communities.”

While the effects of the COVID-19 pan demic and subsequent lockdowns undoubt edly caused tremendous hardships and diffi culties for many, the restrictions also forced the pace of change in several areas of com merce, including driving many new, innova tive business start-ups. Although the range of goods and services was substantial, many shared a number of common elements.

During the lockdown and restriction pe riods in 2020 and 2021, Serbia saw huge increases in home deliveries of all kinds of

goods—with these going far beyond the more obvious deliverables, such as food and beverages. Many craft food producers, for example, found enthusiastic new customers, and everything from footwear to furnishing became commonly available online and by home delivery.

The increase in online ordering and home delivery also forced acceleration in the de velopment of secure online payment sys tems—an area in which Serbia has long lagged behind most European countries. An unintended result was also that when cafes, bars and shops did begin to operate more normally, card payments, especially via contactless payment, were suddenly much more commonplace even for smaller pur chases, as the public health benefits joined with the speed, convenience and security that contactless payments offer.

“She’s Next” program in Serbia by initiating a “Council of Women,” which brings togeth er 12 remarkable businesswomen who will help to identify, shape and address needs of female entrepreneurs in Serbia.

“Women in business in Serbia face several specific additional challenges, and we hope to make a practical difference by raising the profile of the issue and bringing together top women thought-leaders and movers and shakers to encourage the sharing of knowledge and expertise,” said Djordjević.

Representatives within the Council of Women come from various fields of en trepreneurship, including media founders, the gaming industry, TV production as well as hand-made products. In addition to the businesswomen themselves, other ambas sadors include women from associations for women’s entrepreneurship, as well as a representative of the Serbian Chamber of Commerce.

• The majority of female-owned businesses were established more than 16 years ago (35%), but they are closely followed by those founded up to five years ago, which represent a third of the total.

• Most are classed as “micro businesses” with only one employee (47%).

• The majority of female entrepreneurs are active in the service sector (43%), fol lowed by trade in goods (36%).

• A typical start-up female entrepreneur is 36-years-old, with a masters’ degree (41.9%).

• The vast majority of women entrepreneurs operate only in the local, Serbian mar ket (96%), and they are usually active in highly competitive areas of business.

• For more than 90% of women entrepreneurs, the company they establish is their first entry into business.

There are also concerns expressed by women already in business or considering a start-up.

Major worries include: fear of failure and making significant financial losses; a gen eral lack of knowledge about finances and book-keeping and uncertainties about rele vant laws, taxes and regulations. Being solely responsible for all aspects of business, find ing employees and having fewer holidays were also commonly given as key personal downsides to running one’s own business.

At the same time, many women saw con siderable potential advantages in being en trepreneurs. Most cited independence and “being your own boss,” as well as flexible working hours, earning more money, work ing from home and having greater freedom in decision making on all levels.

With this information as a foundation, in early September Visa re-launched the

“These are women who have faced and overcome some of the toughest problems to get their businesses off the ground or have specialist knowledge about start-ups,” Djordjević said. “Now they’re ready to share their experience to help other women. Visa is delighted to provide and support a forum for that process.

“This is an important two-way communi cation channel through which we can better understand the problems women entrepre neurs face and so refine the practical sup port we are able to offer to them,” he added.

“I am looking forward to the positive change we will, without doubt, create to gether.”

Visa is determined that the Council of Women will be much more than just a talk ing shop, and it has ambitious practical goals for women entrepreneurs in Serbia.

“From streamlining payment methods to linking women small business owners with our partners, the “She’s Next, Empowered by Visa” program will offer unmatched re sources and opportunities for women en trepreneurs,” Djordjević continued. “By giving female business owners a platform to create connections and opportunity, Visa is giving a voice to the collective strengths of women in the global economy.”

ALMOST 80% OF ALL START-UPS IN SERBIA ARE FOUNDED BY MEN.

IKEA – designing a sustainable future with 400th global store

Interview by David Dowse

In August 2017, IKEA finally opened in Belgrade--this being its 400th store in the world and the first in Serbia—and now five years later the company is also quietly leading a new revolution that goes far beyond the sale of well-designed and affordable living products. IKEA is now determined to place itself at the forefront of a movement for change in order to become a driving force in bring ing sustainable thinking to the retail sector and the customers it serves in Serbia.

“In one sense, this was matter of survival for IKEA as well as a contribution to a better world,” said Aldo Lele, sustainability manager for Southeast Europe. “We realised that with out a sustainable future supply chain, we might not have a business in 10-years’ time.”

This is indeed a retailer set to make an impact. On a global scale IKEA is a huge producer as well as a major retailer. The ex traction and use of raw materials represent about 45% of the company’s total emissions,

and in order to drastically reduce its foot print, the company plans to rapidly increase the number of products made from recycled or renewable materials. The company target, which is admittedly ambitious, calls for 100% of its product range to be sourced sustaina bly by 2030.

Additionally, in common with most com panies that are taking the sustainability and the ESG journey into the core of their busi ness--rather than treating it as an add-on--

IKEA is placing a strong emphasis on educa tion. This includes its co-workers, suppliers, communities, its customers and society as a whole. Regular workshops are held in-store, bringing together families and “Green He roes,” these being members of the IKEA team who lead on sustainability projects.

“Customer education plays a vital role, so we are engaging and encouraging our cus tomers to shift towards more sustainable products,” Lele said. “We know that afforda

bility is an especially important factor in Ser bia so we are ensuring that our new, sustain able products are at least as affordable, if not even more so, as the rest of our range.”

Sustainability and the ESG approach are fundamentally about joined-up thinking. IKEA has also taken this to heart, for example by taking responsibility for emissions—and not just those the company itself produces, but also the emissions from the domestic appliances its customers buy and use.

Lele noted that this accounts for as much as 20% of its total emissions footprint. Re sponsibility is thus translated into actions in the store, with clear information for custom ers on lower emissions options and training for staff who can advise.

“Appliances using less energy and water and also save the household budget money, so this really is a win-win,” added Lele.

On this note, the Belgrade IKEA store uses electricity that comes 100% from renewable sources. About 20% is produced from the store’s own solar panels, with the remainder purchased through Green Certificates of Or igin. The Belgrade store is one of IKEA’s first locations to achieve this and company’s goal is to have all of its stores worldwide reach the same standard by 2030.

Water is also a focus of attention. A rain water collection system stores rain falling on

the site, which is then used to flush all the toilets in the store and to water the green areas around the store.

This is a great example of a simple but highly effective measure, and it scores very highly in customer feedback. The store team in now focusing on ways to further reduce water and energy consumption—both high priorities as water is becoming increasingly scarce and uncertainty is growing over fu ture electricity supply in Serbia and through out Europe.

At the same time, as Lele pointed out, IKEA’s food offerings are also another prac tical area where it is helping to educate and promote change.

“Our food range is a fantastic opportunity for our customers to enjoy a range of tasty, plant-based foods--and it’s one of the main ways they can make an impact on green house gases. Eating plant-based foods can help cut emission by an amazing 97% com pared to food sourced from animals.”

IKEA is also adding its voice to the growing debate in Serbia about the huge problems the country faces with waste management – again leading through practical strategies.

“We currently recycle as much as 86% of our total waste and 100% of our food waste,” Lele stated. “And we are continuously look ing for ways to improve further.”

Likewise, popular kitchen designs on offer in the store also come with built-in facilities for sorting and recycling waste.

Another innovation reveals how the much-vaunted “circular economy” can work in practice. IKEA offers a buy-back scheme through which customers can sell furniture and other products back to the store, with customers getting a refund of up to 50% of the original price. The used products are then offered for sale again in the store for the same price that was refunded.

On a regional and global level, IKEA is researching and testing many other inno vations, such as, for example, testing ways to compensate and balance the land use it needs for stores and parking areas with equivalent green areas that help to promote biodiversity.

Is it time for you to consider the wide world of podcasting?

by Goran Vojteski

These days you probably have the im pression that podcasts are hosted by your favorite coffee shops, two of the three ac tors from the last movie you watched and every media outlet that you follow--not to mention your neighbor who just loves the NBA and has found a friend to talk about the back-to-back MVP awards.

But why are there so many interested in making podcasts? And why and how you should do the same? And should you go for ward either as a hobby or as a serious con tent marketing project?

Only two decades ago blogging was the essence of internet culture and for many the best way to share opinions, distribute news, promote a product or just have fun writing about topics that they were passion ate about. As most find it easier to express

thoughts and opinions by actually speaking about them, the magic of RSS feed technolo gy audio blogs has exploded, morphing into a new format designated the “podcast.”

Or perhaps the term “exploded” is a slight exaggeration, as in the beginning there was a relatively small community of willing podcasters, and the listening community was not growing as fast as might have been expected—relative to current numbers. Yet some outstanding podcasts did appear, such as Serial Podcast and those by Joe Rogan, Ricky Gervais and Marc Maron, and these attracted massive audiences, which did, in fact, explode over the past few years.

Add to the fact that the consumers of pop culture desperately needed new and original content, podcasts gained an unex pected boost when worldwide lockdowns

pushed audiences towards this easy-to-ac cess source of news, education, and enter tainment. This “perfect storm” resulted in more than five million podcasts, and now the global podcasting market is estimated to have an approximate USD 13 bln value.

Yet the primary reason as to why podcasts are becoming a trend that will not soon fade away is that they are so convenient to consume. They may be accessed any where, at any time, and often podcasts are the preferred option to stay in touch with a given topic while also avoiding unneces sary screen time.

Every global trend is sooner or lat er bound to hit Serbia. In fact, the lo cal podcast scene is experiencing a current boom, up from only 15 podcasts three years ago to more than 400 “shows”

today. Revenue follows an audience, which means companies are also allocating more and more of their digital budget to sponsor and produce podcasts every year.

Currently, there are several podcast stu dios in Belgrade and Novi Sad, which also boasts the office of Sounder.fm, a leading global hosting and distribution platform. Views and audio downloads of some epi sodes of the most influential local and re gional podcasters have already tallied in the millions, and noteworthy is that the authors themselves have become well-known and highly respected with regard to topics being covered on their shows. The hottest current local podcast subjects are business, society, and sports.

Regardless of the current number of au thors on the already formed podcasting scene, there are still plenty of reasons why you should sit in front of your mic and launch a new one.

First, it is easy to start from scratch. You don’t need to be a celebrity or well-known expert in the field you want to discuss in order to have a successful show. You can go from an idea to a finished product in just a couple of days, and as soon as your first ep isode is online, it is available world-wide as there is no real gate keeper.

This makes the podcast form of broad casting an easy winner—especially if you are planning to become a creator and are look ing for a format that can make an impact in a short time.

If stuck for ideas, good advice for a person al podcast is to just talk about your hobby, your experience in certain fields and/or to discuss the latest news with a friend. Anoth er option is to interview people you find in

teresting or whom you feel are already doing something fulfilling.

Over time this can help you build your personal brand, develop new skills, and per haps you will interact with some cool and interesting people. In fact, maybe, this new passion of yours, will even grow into a job.

Creating podcasts are part of a compa ny’s communication strategy is also a logical move. By developing a strong presence on YouTube and social networks, companies (brands) become media-like content crea tors. This of course can be complicated for many firms since few have enough experi ence and manpower to manage this prop erly. Yet the rise of podcasts as a medium has opened a new and easier way to attract audiences, and any business, big or small, is sure to benefit.

Moreover, carefully designed content builds a more personal relationship between

the brand and the potential consumer while drawing more attention and creating a stronger presence online. The reality is that if you can successfully answer the questions “who am I making a podcast for?” and “how will this benefit my audience?” prior to the creation of the first episode, you will have a powerful asset that communicates directly to your target audience.

Some of the great examples of brand ed podcasts are created by global industry leaders like GM, eBay, Microsoft, McDonald’s and Slack.

Marketers in Serbia have also recognized this potential, and apart from sponsoring top podcasts like Agelast, Biznis Priče, Pojača lo etc., they are also creating new branded shows, with the best examples being those of Milka and L’Oréal.

As with any business, when you create a product (content) you should work on de veloping a community around said content. Respect the time people dedicate to you by making sure that they learn something new and that they have fun. Communicate with them in the podcast (thank them, refer to their comments), and always have in mind the fact that people usually consume pod casts alone within the sanctity and sanity of headphones--so do not be aggressive in any fashion, and do not think that fans will re main loyal if you fail to give them what they want and expect. And finally, if you want to keep the audience that you have attracted, consistency is the key.

Pop, fizz, clink - time to break out the bubbly for the holiday season

Serbia is unique with not one, but two New Year’s Eves, and what more inspiration is needed to spend a bit of holiday cheer with some of the country’s finest sparkling wines? Serbia Monthly recently had the pleasure of sampling four such sparkling wines, these being Tri Morave Brut 2018-Temet, Biser 2016, Memento 2016 and Triumf Noir 2020--and it’s a safe bet that even if the season goes Grinchy, with any of the above a bit of cheer is guaranteed.

That special night filled with hope is ap proaching.

People around the world will gather on Dec. 31 around a table full of sumptuous food, sharing common dreams of a better tomorrow. In Serbia, that special holiday spir it will last somewhat longer—from mid-De cember until mid-January—so a rigorous diet in February is required to neutralize the effects of the holiday feast.

In fact, Serbia celebrates two New Year’s Eves, the international New Year’s Eve on Dec. 31 and the Serbian (also known as Or thodox) New Year’s Eve on Jan. 13. So now is the moment to replenish your stock of spar

kling wines because when the clock strikes midnight and when you kiss your loved ones and wish them happiness, good health and love, the magical sound of opening a bottle of sparkling wine and appealing fizz in the glass will make the atmosphere unforgetta ble.

Yet even if you are a holiday Grinch, there is no disputing that sparkling wines are be coming increasingly popular in Serbia. Lo cal winemakers produce different styles of sparkling wines, but a special night calls for a special treat.

In Serbia, sparkling wines are most often made in the same way as in Champagne.

Pinot Noir and Chardonnay grapes are har vested in local vineyards for sparkling wine production.

However, in recent years, there has been the trend to use local grape varieties in the production of sparkling wines, eg. Tamjani ka, Grašac and Smederevka—thus providing an exciting Serbian spin on time-honored flavors.

Typical features include nutty, biscuity aromas, balanced with vibrant acidity and ample fruit—from which Serbian sparkling wine also gets its reputation for finesse, depth and distinct character.

Editor’s Note - the following wine rating system was applied:

50-69 points - wine with serious flaws, unacceptable 70-79 points - low quality wine, minor flaws detectable, yet acceptable 80-84 points - decent, good, simple wine, without high aspirations 85-89 points - quality wines, with distinct character and typicity 90-94 points - exceptional wines of premium quality 95-100 points - outstanding wines, great wines in all aspects

Tri Morave Brut 2018Temet (Jagodina, Tri Morave)

Tamjanika, the Serbian version of Muscat Blanc a Petits Grains, shows more subdued character in its sparkling form, yet enough to seduce and charm you. Forget the flabby sweet Muscat sparkling wines that can be found on supermarket shelves all over the world because you have in your glass a new dimension of Tamjanika. Frisky Muscat aromas are not so pro nounced, but floral notes dominate the nose, accompanied with white flowers, elderberry, spicy hints, basil, tangerine peel, citrus. Playful bubbles bounce on the palate and leave a vibrant juicy trail. 88/100

Biser 2016 - Aleksić (Vranje)

Sparkling wine made from the indigenous Serbian Smederevka grape variety has given a new life to this until recently neglected grape variety. Mature, developed aromatic profile with aromas of apple, grapefruit, bri oche, butter. Excellent freshness on the palate adds to vibrant and crisp mouthfeel, persistent bubbles. A fine play of nutty and fruity aromas. Im pressive, long finish 94/100

Memento 2016 - Pusula (Valjevo-Pocerina)

Pinot Noir and typical brut rosé, complex, layered, brimming with del icate aromas of yeast, warm brioche with butter, fruity notes dominated by cranberry, cherry, raspberry. In the glass, the wine evolves and brings notes of hibiscus and spicy tones in the back. Sumptuous, tiny bubbles, harmonious acidity. 89/100

Trijumf Noir 2010 - Aleksandrović (Šumadija)

Some preserved freshness on the nose despite long aging on lees and years spent in the bottle. Tertiary aromas stand out, intense butter-milk , bread crust, hints of hazelnut, developed mature fruit aromas, overripe pear, yellow plums, yellow apple. On the palate, flavors of apple, peach, grapefruit, nutty tones, milky-buttery trace mixed with bubbles. A long, delicate finish showing fine acidity and minerality that add extra fresh ness. 91/100

Did you know:

· You can determine quality of sparkling wines by the size of bubbles - the smaller the bubbles, the higher the quality

· There are about 49 million bubbles in a bottle of sparkling wine

· Be careful when opening a bottle of sparkling wine: the pressure inside a bottle is about 3 times the pressure of a car tire

· About 28,000 bottles of sparkling wine (predominantly Champagne) are served at Wimbledon every year

· Concerning Serbia, the wine regions which excel in sparkling wines are Srem (Fruška Gora) and Šumadija, although fine examples of sparkling wines (classical method) can be found in other regions as well.

So just whose dog is it anyway?

by Chris Farmer

Long-term resident and consumer activist Chris Farmer opines on dogs, dog ownership, dog safety and the realities of caring for canines in Belgrade and Serbia. But tongue-in-cheek does not mean he’s not the least bit serious.

This is not your dog.

You feed it, you walk it, you pick up its poop – leading most alien observers to think that the canine is probably the dominant species on this planet. But essentially “your” dog is public property.

Walking down the street, minding your own business, you will be stopped innumer able times because someone else blithely blocks your progress and starts playing with your dog. They pet him, talk that strange baby-canine talk, which we use in talking to our animals, and expect you to stand idly by while they exercise their civil right to com mandeer any dog passing in their vicinity.

When my dog was a puppy, he was often stopped by people to admire him. I had en tertained the idea of changing his name to “Joj” since that’s what everyone would say after stopping us to play.

Joj!

These walk-impeders and prome nade-preemptors I am henceforth calling dog jackers (from the Latin Dog-Hijackerum), and please feel free to use the term at small social gatherings and receptions. Most of the time, these dogjackers rile the dog up into a kind of frenzy and then laugh, walking away from the scene while never once ac knowledging your presence as the owner. In general, it takes a few minutes to recover and resume a walk.

You might think this sounds overly harsh and superciliously sensitive. As in why can’t people play with your dog? Ok, no reason. But does it hurt to ask me?

On a serious note, I have seen many im prudent parents allow their children to ap proach my golden retriever’s mouth and stick out their fingers. My Dexter is a gentle specimen and won’t hurt anyone, but oth er dogs may not be so obliging. In fact, the

number of large and potentially dangerous dogs and dog species on the streets of the White City is a little frightening—especially if you aren’t looking where you are stepping. In sandals. Without socks.

Need I say more?

When I first arrived in Belgrade, there were not a lot of households with pets in the city. At that time, in fact, Belgrade had a problem with packs of wild and marauding dogs in disused areas of the city center, as well as in New Belgrade. Those dogs were perceived as threatening, but the truth of the matter is that the number of households with aggres sive dogs has increased dramatically today, but clearly the general public is less careful than ever before.

That said, Belgrade has a great deal to offer new dog owners, including many reputable and effective training services

and obedience schools. It is a concern that many owners of more aggressive species such as Rottweilers, Cani Corsi, Dobermans, and Mastiffs—but also such more common breeds as Labradors or German shepherds— will often take possession and responsibility for an animal about which they know very little. Any of these dogs can be trained to gentleness, but they need to be trained.

The primary danger is to other dog own ers, of course, but also to the dogjackers who could be injured by these untrained animals.

That said, the number of pets in Belgrade has given rise to many new services and shops (not all of which are created equal). You can find everything you need for a cat or a dog, and other creatures too, most likely.

One of the main attractions of the better pet shops and centers is the availability of delivery. When I discovered that my usual pet food supplier makes home deliveries, my quality of life increased dramatically. Although I go local, in the center there are larger shops with even more services and choice are in malls such as Usce, Delta City, and Galerija. Pet Centar has its own Big-Box outlet in New Belgrade, and they also do de liveries.

Even though I love going to Atos I Masa on Studentski Trg as well as the Royal Shop on Cetinjska, I dread taking my dog. Still, hope always triumphs over experience—so every time I need to go to the pet shop I do indeed bring Dexter. Yet Dexter pulls with some 50 kilos of torque, meaning that I sometimes return home having bought cat toys instead of poop bags or an extra leash instead of a new collar. Fortunately, both stores deliv er the food and generally they are better at handling stress than I am.

In short, I always get what I order. There are also grooming and cleaning ser vices. I have it on fairly good authority that golden retrievers should not be groomed or shampooed too often, but when they need it, it is good to know that someone else can do it for you. Let’s face it: wrestling a large wet dog around the bathroom (and usual ly around the house) is not the best use of a Saturday night

As far as choice goes, Belgrade has much to offer. For a consumer, however, this means

to know. Moreover, a good pet shop usually has a good connection to at least one near by vet in case you need it.

Belgrade indeed now has far more to offer when it comes to pets so it is worth taking the time to ensure you get what you and your best friend want.

Thankfully, the quality of global pet food brands available, such as Farmina, Royal Ca nin, Hills Science, Pedigree, or Purina, means that you need not worry about giving your dog the wrong thing or getting unfair prices.

One final appeal: I beseech you, dog own ers, PLEASE pick up your dog’s poop. You know who I am talking to.

Long-term resident and recidivist con sumer in Belgrade, Chris Farmer has spent hours railing against consumer injustices, inconveniences and incomprehension in countless blogs and columns as well as in two volumes of Grumpy in Belgrade (Kom shed.o.o.).

Lafayette: not for the faint of heart - or taste buds

by Daryl Fidelak

We considered the evening with both ex citement and trepidation.

Our first restaurant review—for a maga zine anyway.

Our “mistake” was to kick off with Lafay ette, Belgrade’s answer to…

Well, that’s the problem! For we can’t re ally compare Lafayette to anything either my wife, Marija, nor I have ever experienced, whether or not our dining destination hap pened to be located in London, Paris, War saw or NYC. And trust us, we’ve been around the hospitality and entertainment industries for some time.

Let’s start with the misconception that a night out at Lafayette is pricey. If you con sider the level of entertainment, accented by the good food and the wine (with pric es within reason)--not to mention a cigar

list--Lafayette is comparable to a standard night out with dinner, drinks and dancing combined.

Now don’t get me wrong, you can spend a bundle—and there is of course a mini mum bottle requirement per table based on group size. Yet even here prices are not over the top, although, if I’m going to go full transparency, prices are above average for Belgrade restaurants, but in line with local clubs.

We opted for a bottle of Temet’s Tri Morave Rezerva Red, which went perfectly with duck breast and truffled mashed potatoes. The duck was seasoned and grilled to perfection, creating a tasty crust that led to an equally perfect and juicy interior. Those not familiar in the arts of duck breast grilling, could easily mistake this dish for a sirloin tip. As for the

truffled mash potatoes, this comes fully rec ommended as an accent to any dish on the menu. Fantastic.

Marija’s ravioli, while tasty, was on the verge of being a tad chewy. But let’s just say we consumed it just in time. This was prob ably due to the hour at which eventually ordered our food—which was around mid night.

Both of us have worked various kitchens over the years, and we know that a “day into night” of cooking is a marathon—and we were ordering close to the finish line. At Lafayette we suggest you order your meals at the start of the entertainment marathon around 10pm. Doors open at 9:30 pm and the festivities really kick in around 10:30 pm. That said, where else in Belgrade can you find a gourmet meal past midnight!?

The mezza plate of assorted cheeses, meats, and breads were spot, on as were the sides, such as the grilled shrimp. We unfor tunately did not get a chance to explore the dessert menu, and I also would like to see if the kitchen is up to making perfect steak that Lafayette claims. Let’s just say, challenge accepted! We will return to nibble through the menu so stay tuned.

Now for the entertainment. For those that have experienced cabarets in other venues/ cities, all the usual/suspect trappings are here. Show tunes, dancing girls, burlesque, slight theatre of the absurd, live music, lasers, pyrotechnics…

But what sets Lafayette apart is the pure virtuosity of all the above, and this sprinkled with Serbian/Balkan passion also fueled with the best of global music. To paraphrase the cult film Spinal Tap, Lafayette Cabaret goes to eleven.

The dozen or so entertainers are a mix of musicians, acrobats, dancers, and actors. Some, if not most encompass all four talents. This leads us back to the actual cost v. En tertainment value. You are getting some of the best talent in Belgrade, if not Southern Europe. The ability of performers to entrance on what is a full 360-degree stage sets them apart from any and all. Also, kudos to the house production team. Standard live thea tre on a stage ain’t easy, but live theatre in front of, around and on top of an audience of close to 500 is next level indeed. During one act we felt the heat of an actual flame thrower, but we left unsinged at the end of the night

By now you are asking for total cost. And yes, as I have intimated, it was a tad pricey, coming to about EUR 175 for the two of us— although this was all-in, including the tip. To compare, our last “big” night out in London’s

West End (pre-COVID) started at GBP 500. Let’s just say that relatively speaking, Lafay ette is the best of the best- globally.

So a bit of advice for those reading this, es pecially if living outside of Serbia: f you plan an extended weekend jaunt to Belgrade, make sure you book a night at Lafayette. Along with being memorable, you’ll make your friends super social media envious!

Daryl and Marija Fidelak are a lovely cou pleforgedinthegourmetandmusicworlds. Together they own Lampshade Media, one of the region’s largest indie music labels. D&M also host their own cooking and talk show aptly named Daryl & Marija’s Dinner Club,onKitchenTV.

We’ll run this one together

Once dominated by amateur, professional or retired athletes, the Belgrade run ning scene has changed dramatically with recreational runners now the norm and recently running clubs having appeared in major cities.

by Marija Tesić Fidelak

“When we started the Belgrade Running Club (BRC) back in 2011 the recreational running scene was almost non-existent,” said Dragoljub Milosavljević, director of BRC. “You only had athletes who were training [for competition] and also the occasional ama teur runner. At that time, it was unthinkable that there would be a membership-based club that would be involved in recreational running.”

Amateur runners (who engaged in half marathons) and full marathon runners were a rare breed in Belgrade. Now a decade on, that has completely changed, and BRC exists to prepare all levels of runners for all types of runs and even walks as the club now also has a Nordic Walking group.

Two athletes helped the recreational scene get moving: amateur runner Veroljub

Zmijanac and marathon and triathlon ath lete Ivan Radenković. The pair managed to get others connected through the running portal trčanje.rs where they began to devel op the idea of a recreational runners club

Shortly afterward, the Belgrade Road Run ners club was born, inspired by the New York Road Runners club. The BRR evolved into the Belgrade Running Club, founded in 2011. Moreover, from just one internet site (trčan je.rs) six different branches appeared, these being the Belgrade Running Club, Nordic Walking, Outfit, the Serbian Business Run, Di onysus Experience, which were all backed by the sports marketing agency SportIT.

At the first training on February 6, 2011, 6 people ran on the snow-covered track at sports centar Olymp on Zvezdara, Belgrade. This is where the history of BRC begins. At

that time it was unthinkable that there would be a membership-based club that would be involved in recreational running. The runners still all knew each other or were friends.

Within in the first year of its existence, the club, in addition to regular training, organ ized trips to races around the region as well as a seaside running camp. By the end of the year, the club had more than 100 members.

The following year, the Belgrade Running School was established, teaching beginners the basics--from how to run, what to wear, how to breathe and what to eat and drink prior to, during and after running. The goal was to have complete novices run 5 km at the end of the program, this being a race which most attendees would finish with eu phoric feelings of accomplishment.

Once having gone through training at the school, most Road Runners have then joined the Belgrade Running Club.

“The largest value was creating the com munity around BRC,” said Milosavljević. “Run ning is the catalyst for us to get together sharing the values of BRC: which includes overcoming the belief that we cannot do something; breaking personal barriers while socializing; making new friendships; trave ling and competing in races all over the re gion and beyond.”

“Over the 11 years that the club has been active more than 4,000 novices—many nev er having previously walked more than one kilometre at a time—have completed 5k- or 10k- runs, half marathons and even full mar athons,” he added.

“The club’s community has brought run ning to life and life to running.”

The simple philosophy behind the club is that everybody has the capacity to run. Running, according to one member is equal ly “challenging and simple,” and during the pandemic it was probably one of the rare sports club that did not cease its activities, as training was done in small groups and outside

The business model of the club is carefully planned. Coaches are mostly young athletes who are either currently studying or hold a degree in athletics or sport management with course in related fields like medicine.

The emphasis is that there is no such thing as poor achievement.

According to the BRC code--everyone is welcome and everybody is a winner no mat

ter age, gender or physical disabilities.

The seed of the club program was plant ed back in the student days by of one of the founders, Veroljub Zmijanac. While studying in Germany, his roommate, who was 45 and fit, kept inviting him for a run. After getting past why he “couldn’t” manage it, Veroljub joined his roommate and never looked back.

The current program was also created not just on the ethos of “just get out and run,” but instead it was based on meticulous re search, with the early founders focusing on online articles, books found abroad and also a heavy consumption of documentaries and informational campaigns promoted by the likes of Nike and Adidas.

Coaches also attended global conferenc es, exchanging experiences with runners from all over the world. Bolstered by the per

sonal experience of over 30 coaches, the BRC program is very unique, not just in Belgrade, but in the region.

The Belgrade Running Club is not just about running, but it has and is developing a variety of new programs, such as Nordic Walking and Outfit (Outdoor Fitness Revo lution), which apart from exercising outside is promoting OCR (Obstacle Course Race) competitions. This is the fastest growing am ateur sport company in the region.

“Nordic Walking is a relatively young discipline in Belgrade, really only gaining momentum in 2018, within our club,” said Milosavljević. “It really took off during the pandemic of 2020 when city dwellers did not want to be stuck in their apartments.

“We considered BRC as a sport club at the beginning but soon realised Nordic Walking

is its own brand, now with the BRC vision,” he added. “It was formed with the idea to introduce fitness to people that may not be really into it.

Fitness is done at the low impact level which helps attendees also realize if they can handle this or want to move on. So far we have had more than 15 Nordic walkers move to our Running Club.”

From Nordic Walking all the way up to professional Triathlon training, there is a place for everyone in BRC.

Members join at their own pace and find with proper training and friendship that the club helps quicken their pace to a healthier and fun life.

There are two true seasons in the year for Belgrade Running School (https://skol

atrcanja.com/) and the Belgrade Running Club (https://belgraderunningclub.com), these being October with the second sea son starting at the beginning of April.

The Serbian Business Run was founded in 2016 and is one of the largest team-build ing events in the region. This is a 5k race with companies entering teams of employ ees. The first runs were held in Topčider, Belgrade with a handful of runners, but since it has now grown to include thousands of participants in four cities across the coun try, Belgrade, Novi Sad, Subotica and Niš.

This year’s Serbian Business Run in Belgrade was held at Ada Ciganlija on Sept. 29, with thousands of attendees. It also included for the first time “CO2 offset,” which the assumed amount of CO2 produced during races by planting an equivalent amount of evergreen trees. This campaign was implemented in cooperation with the Ana and Vlade Divac Foundation, with the long-term goal of having the most socially respon sible companies contribute through their donations to the planting 100,000 trees by the end of 2025.

In 2016 there were 288 participants from 58 companies. In 2022, the event saw10.500 participants from 626 companies.

Inspiring Speakers & Topics

Discover future market trends, deal pipelines, and state strategies and plans from the most relevant names in the SEE non-performing loans market.

Audience

The event will be attended by delegates from key international financial institutions (IFIs), international organisations, public authorities, private banks, potential investors, advisory services, workout professionals, commercial banks, legal experts, local regulators.

Registration

For more information & registration visit www.seenplforum.com

The 6th edition of the leading NPL Forum in South East Europe

Walking the talk; the European Sustainability Academy and ESG

Serbia has a number of top-class management training centres, which are playing a central role in raising business and professional standards in the country, but rather surprisingly, none appear to currently offer courses specifically focused on Environment, Social and Governance (ESG) from the perspective of strategic leadership and communications.

True, one or two of the leading account ancy and law firms offer courses in regulato ry compliance and reporting, but not about the fundamental role of the ESG process and sustainability as an essential and powerful business model.

This will soon change, but for now Serbs need look no further than the European Sus tainability Academy (ESA) in Crete, Greece.

A world-class centre for thought leader ship, published research, training, creative workshops and seminars, the ESA literally lives and breathes its reason for existence.

Built entirely from local renewable re sources, including clay, straw bales, wood and stone, the building’s unique bio-climatic construction keeps the interior cool in the

summer heat and warm in the winter, with out the need for air conditioning.

The school operates entire ly off-grid, using solar power to pro vide all its electricity needs, and with a near zero net waste policy and a strong recycling ethos that’s also applied to local suppliers like catering, the ESA is a living ex ample of sustainability in action.

The concept of the ESA comes straight from a remarkable woman, Sharon Jackson, MSc.

Prior to embarking on a teaching and research career and creating ESA, Sharon worked for 15 years in the corporate world, primarily in senior roles in the electronic component sector, developing internation

Interview by David Dowse

al business through bitg global distribution and supply chains.

As well as her highly-proactive role as director and principal at the ESA, Jackson’s credentials as a thought leader on ESG and sustainability leadership are more than im pressive; she is also director of Carlton CSR -UK, an associate faculty member at Cran field School of Management, an associate scholar at University of Cumbria, Institute for Sustainability and Leadership; a visiting lecturer at Murray Edwards College and a Cambridge University and visiting research fellow at Athens University of Economics and Business. Below are her insights on ESG, as well as her take on some of the major is sues facing Serbia.

SerbiaMonthlyinterviews Sharon Jackson, MSc, founder and director of the European Sustainability Academy, a unique centre of thought and learning.

SM: Congratulations on creating the ESA and running the ESA successfully for 10 years. The center seems to per sonify many important aspects of the ESG journey – not least, the need to “walk the talk” on the journey to sus tainability. When you set up the Acad emy, the hot topic in business C-suites was CSR (Corporate Social Responsibil ity). Can you say something about the switch to ESG? How is it different?

SJ: Actually ESG auditing is not a new process. Over the past 20 years it has gone through the evolutionary stages of “Triple Bottom Line (TBL),” “Responsible Auditing” and “Socially Responsible Investment” mod els, all with varying three letter acronyms.

CSR also emerged at the turn of the mil lennium and TBL reporting became the standard for CSR reporting. CSR appeared to bring hope for more responsible business, but unfortunately CSR was seen as a market ing and branding opportunity and philan thropic activities outside of the organisation.

Anita Roddick, founder of The Body Shop and one of the early thought leaders in sus tainability, famously said Corporate Social Responsibility (CSR) had been a “wasted op portunity’.”

As many corporate leaders saw CSR as a marketing tool, we saw the rise of “green wash” as a useful way to appear in a good light and sometimes even to divert attention from their less savoury activities.

ESG is different because it is an auditing process, which has very recently become endorsed by the global investment commu nity. It has been recognised that companies which are not responsible in the areas of Environment, Society and Governance are a risk to investors. This is a game-changer. ESG involves and impacts every department and every activity of a business. It cannot be a bolt-on project in the HR or Communica tions department. It has to start from the top, and permeate every corner of a company –including the supply chain.

SM: So this makes a strong focus on ESG in Leadership and Development training essential? How do you balance this with the over-riding objective of maximising profits?

SJ: The mantra of a company objective being solely to “maximize profits’” for the shareholders is long outdated. Most pro gressive MBA programmes no longer es pouse this. There are so many more different business legal entity types these days, where it is fully recognised that ESG irresponsibility

usually has high cost to a business.

The world is changing. Consumers and B2B customers are increasingly well-in formed and engaged. Customers have pow er and they are learning fast how to use it. Institutional investors know this too. Com panies that have rigorous ESG auditing are favoured by investors, because they are con sidered to be a lower risk.

However, ESG auditing is only part of the risk reduction. An ESG audit without the fol low up systemic organisational change is still a risk.

fects one country inevitably impacts its neighbours and the whole eco-system. What in your view are the biggest issues facing Serbia in the coming period?

SJ: The principles are always the same, although of course the specifics vary from country to country. Among many problems and in common with several other countries in the Western Balkans, Serbia faces huge challenges in the process of energy transi tion. Coal-based electricity generation, com bined with domestic fires burning whatever they can to keep warm in the winter, old petrol and diesel trucks, buses and cars – all of this combines at certain times of the year to produce Europe’s worst air pollution in several of the region’s cities. The damage to public health and the contribution to glob al warming are enormous. Solving this will require great vision and commitment – and above all, joined up thinking. In this respect, it’s a good metaphor for ESG generally–you can’t just tweak one part of the picture. It’s encouraging to see developments in wind, solar and other renewable energy projects in Serbia, but I’m also very aware that unregu lated hydro-electric projects can cause huge ecological issues in their own right, so great care and attention are needed at the same time as urgent action.

Jackson MSc, Founder and Director, European Sustainability Academy

You ask about ESG Leadership training. It is well-documented that the current leader ship in governments and organisations do not possess the necessary competencies to drive the levels of change towards a more sustainable world. This is because many of them have been trained in 1990s business thinking and that is the thinking that has caused the problems we find ourselves in now. There are new frameworks of compe tencies for effective “sustainability leaders” who can take action beyond the ESG audits and have no tolerance for “greenwash.” The businesses that they lead will find it easier to find and retain customers and easier to raise funds for investments. Those are pretty strong business imperatives for any leader.

SM: You’ve hosted delegates and groups from many top companies and from a wide range of countries, al though you would probably agree that you’ve naturally had a focus on Greece and its specific challenges in environ ment and sustainability. Of course, en vironmental issues in particular have no respect for borders and what af-

SM: Individual citizens and compa nies of all sizes can often feel powerless in the face of problems of that magni tude. What is your message to them?

SJ: The current global problems of cli mate change, water scarcity and pollution on land and sea can seem overwhelming. That is a natural response. Making a practi cal and meaningful contribution to change can make us feel part of the solution and not only the problem. For organisations and citi zens alike, the first thing is to notice the large global problems in the context of you own community or business. Secondly, get fully informed and educated about those issues and look for examples of possible solutions. For example, in Crete for EU Greenweek, from ESA we ride bamboo bicycles across the island. We meet school children, busi nesses, municipalities, restaurants and bars to discuss the problems of plastic pollution in the sea. We show people alternatives to single use plastic, such as bamboo tooth brushes, bamboo cotton buds and paper or steel straws. If you are informed, authentic and consistent in “walking your talk,” you can be a change maker that others will follow.

Sharon

The Long Way Home

The marketing industry, which includes anything within that nebulous landscape covering public relations, branding, marketing, advertising, and talking loudly at your local kafana, has always been widely misunderstood in Serbia.

by Chris Farmer

Since the transition period, from 2000 to around 2004, the various branches of this industry have been seeking to develop ful ly and become vibrant parts of the econo my. Early public relations agencies focused a great deal on teaching clients and custom ers what to expect from “PR,” an abbreviation that for most people was a job description that typically confused up images of a beau tiful woman with a microphone between programs on RTS. In this period, the word marketing was synonymous with every part of this sector, and especially advertising.

Meanwhile, many of the major global advertising agencies had arrived and were working hard, having established Belgrade offices early on. McCann Erickson, BBDO,

Publicis, Leo Burnett, and J. Walter Thomp son were just a few of those present. The budgets were not the same as might expect ed in New York and Los Angeles, but still, in those early days, there was an expectation of prodigious growth.

Public relations came into wider use a few years later when it was finally understood that what a PR agency does can work in tandem with advertising and other market ing tools. Some agencies saw a tremendous boom from 2005 and into early 2007, as more and more foreign investors were arriving and expressed a need to have quality public re lations firms to help them to be better un derstood. At that time, McCann Public Rela tions (now Represent), Farmer & Spaic, Olaf

& McAteer, Chapter 4, and others divided up a market that seemed ready to explode.

When the financial crisis of 2008 hit, how ever, many budgets instead collapsed. It was a moment when small- and medium-sized companies pulled back any marketing-re lated spending while the larger ones had to rationalize their efforts as well. For the PR sector, it was a sea-change from which the sector never truly recovered. The sector, in many cases, was rolled back dramatically, leaving media relations as the tail end of PR. During that same time many smaller agen cies and solo-operators had to change or close down completely. The bottom had fall en out of pricing as well, fueling a price war in which only the deepest pockets survived.

Brand communications in Serbia

In the following years, leading up to 2015, more or less, the economy began to recover and improve and with it the fortunes of the marketing industry. By this time, much of the real innovation and many new projects were starting to be herded into the digital arena. In this way, marketing in Serbia was not re covering as much as it was evolving. Given the high level of software engineers, devel opers, and coders in Serbia, the moment was propitious.

Enter the brand...

Brand management and brand commu nication are not new. The idea of branding has been around for centuries, but it is only over the course of the past ten or so years that branding as an independent sector has begun to truly emerge from the shadows of the marketing industry. With the enormous brand equity growth of global behemoths, such as Coca-Cola, Google, McDonalds, and Apple (no longer in that order, by the way), every company from manufacturing to services retooled their marketing efforts to put out a clear, recognizable brand as a means of growing their value through identity.

Interbrand, a brand consultancy and refer ence point in areas such as brand strategy, brand management, and brand valuation, publishes every year the top 100 brands by equity. In 2021, the top five were Apple, Amazon, Microsoft, Google, and Samsung,

relegating erstwhile leaders Coca-Cola and McDonald’s to number six and nine, respec tively. In terms of branding, this reveals a few interesting things about the state of the mar ket and how brands need to prepare them selves.

The top five are all technology brands. This could have happened as a result of the measures taken during the COVID-19 crisis. During that time, consumers needed some thing they could trust and all five of these brands were in their pockets, on their tables, or delivering goods to their doorsteps. Cokes and Big Macs were still important, but not on top. Looking at the Interbrand rankings year by year, it becomes a little easier to see why certain brands grow while others dwindle.

The branding outlook for Serbia appears to be at the beginning of this curve of so phistication. An investor such as MidEuropa saw the writing on the wall and formed “Moj Brendovi,” a holding company that included such well-known Serbian brands as confec tionery Bambi, dairy producer Imlek, and venerable mineral water brand Knjaz Milos. Each of the three are very well established and highly recognizable brands in Serbia and the region. Using Moj Brendovi to raise their brand profiles, Bambi was sold to Co ca-Cola, Knjaz Milos to Pepsi, and Imlek re mains with in Danube Food Group.

The real test for branding in this country, however, will be when it filters down to the smaller companies. At the moment, invest

ment in branding is regarded as a luxury in sofar as the return on investment for brand ing is, at best, indirect. The larger businesses may be in a better position to see further, but branding remains one of the least un derstood parts of the marketing industry.

In this inflationary time, when money is tight due to rising costs of production, en ergy, and all parts of the supply chain, some CEOs and CFOs find it easy to cut funding for areas like branding. The reality is just the op posite. When money is expensive and does not buy as much as it used to, consumers will turn more and more to brands. Brands represent trust, familiarity, and reliability.

Building your brand in hard times is exact ly this: investing in trust.

Chris Farmer is the owner and operator of Notapipe Brand Consulting, based in Belgrade, and is also an adjunct-professor of brand management, luxury branding, marketing,andadvertisingatuniversitiesin Suzhou and Nanjiing in China. His book on branding, Living Brands, is available in larg er bookshops in Belgrade and online from komshe.com

Europaproperty Announces the Winners of the 2022 CRE Awards

Today the financial and economic challenges for the commercial real estate market can be more uncertain and demanding than ever, but, despite this, so many companies are flourishing and achieving incredible success for them selves and their customers. In this way, the CRE Awards provides all winners with the opportunity to be recognised for their hard work and commitment and share their successes with industry peers, teams and clients.

The CRE Awards celebrate excellence in the commercial real estate sector. Judged via a rigorous evidence-backed process on the success and market excellence of all nominees, these awards acknowledge the contribution of the commercial real estate profession in enhancing the reputation of commercial real estate companies operating around the CEE region.

Major winners of the 2022 CRE Awards included leading market players WING, AFI Europe Serbia, Property Market, Adventum Group, CBRE and Newmark.

WING was recognised by the jury for its ambitious development and investment ac tivity. The company collected awards in the office and retail sectors. On the project side, Gobuda Mall won in the Refurbishment/Ex tension category. The company also collect ed the Office and Retail developer awards.

Adventum was recognised as Investor of the Year on the back of its busy investment activity throughout the region. The jurors highlighted this by awarding the company in the Investment Deal category for the ac quisition of 18 Tesco properties in Hungary and the Czech Republic.

Hungary’s Indotek Group was also recog nised for its record-breaking acquisition of GTC’s office portfolio in Belgrade. AFI Europe Serbia was also lauded for its successful in vestment and development strategy in Bel grade.

Newmark picked up the Professional Ser vice Provider of the Year, and the company’s Managing Partner Valter Kalaus walked away with the coveted Overall Professional of the Year award.

The developer Property Market scooped up a couple of the main development prizes

by Winston Norman

including Office Project of the Year for Bu daPart City and Residential Development for BudaPart Residential “E”. The company also received the Residential Developer award.

Horizon Development won the mixeduse development award for the revitalised luxury project Szervita Square Building in Budapest. Redwood Holding won the Hotel Project award for their Hard Rock Hotel Bu dapest development. Future Project of the Year went to Academia by the joint venture of Europa Capital/ConvergenCE in Hungary and on the PRS side AFI Europe Serbia’s Sky line AFI Home in Belgrade also received high praise and recognition.

Highlighting changing market dynamics and end-user needs, an awards section was dedicated to the industrial and warehouse sectors with some of the region’s biggest

players recognised here. Panattoni, CTP, In Park and HelloParks were all awarded for their hard work and expansions throughout the region.

InPark won Industrial Project of the Year for InPark Gyula Industrial Park. CTP walked away with the Warehouse Developer of the Year award. Panattoni won the Best BTS De veloper award, and Warehouse Project of the Year went to HelloParks Fot Budapest North – FT1.

Consultancy CBRE collected Agency of the Year, as well as Project Management Firm of the Year, and Eston International walked off with the Property Management Firm of the Year award. Other company winners includ ed CPI FM taking the Facility Management Firm award and CMS Cameron Mckenna received Law Firm of the Year. Óbuda Group - Óbuda Építész Stúdió won Architectural Firm of the Year and Bank of the Year went to Erste Group.

Accentuating the interest in the region’s e-commerce sector, a few key online retail companies were shortlisted. The eventual winner of the Retailer/e-commerce of the Year award went to fashion retailer Koton.

Commenting on the success of the win ners, Craig Smith, CRE Awards Organiser, said: “Having become an established leader, the CRE Awards are a chance for our winners to reap the rewards their hard work deserves. It is with great pride that I wish all the win ners a hearty congratulations and the best of luck for the future.”

EuropaProperty prides itself on the va lidity of its awards and winners. The awards are given solely on merit and are awarded to commend those most deserving for their ingenuity, hard work, and success distin guishing them from their competitors and proving them worthy of recognition.

To learn more about the award winners and to gain insight into the working practic es of the “best of the best”, please visit the CRE Awards website (www.creawards.net) where you can access more information about the winners and the event.

On behalf of our sponsors, judges and attendees, we offer our congratulations to all the winners. Foundations are already in place for next year’s event, which promises to be even better.

The 5th annual CRE Awards will be held on October 19th, 2023.

There is huge potential in Serbia say experts at CRE AWARDS CEO Investment Forum

Markets are heading towards a perfect storm but the dust will settle agreed panel lists at the 4th annual CRE Awards CEO In vestment Forum organised by Europaprop erty.com in Budapest, Hungary. An annual prelude to the main Gala awards event.

“We are used to adapting to new situa tions,” said Manfred Wiltschnigg, the manag ing partner of Galleon Capital Management. “Opportunities and chances in our region are high and positive. There’s money to be

spent, the main issue is the health of the end-user. The next six months will be chal lenging, but we will survive.”

“Belgrade is a great market, its underval ued at the moment,” said Adir El Al, the CEO of AFI Europe Serbia. “The big issue is liquid ity. However, the office market is very strong in Serbia’s capital, there is huge demand.”

“The PRS market looks promising and could be the next big thing,” said Ariel Ale jandro Ferstman, the CFO and management

board member at GTC. “Poland is in a great position and could be a big winner.”

“ESG – the industry has to wake up to this,” commented Hubert Abt, the CEO and founder of New Work Offices. “There has never been a better time to address these is sues. It’s a standard, you have to be certified and ESG orientated. A lot of funding is now based on green funding.”

The panellists agreed that the market fac es a lot of challenges. Peter Takas, partner at

Newmark VLK Hungary, said “There will be many renegotiations and rethinking of how you should approach your business. Current inflation and interest rates – are what they are – we have to get on with it. Real estate is a safe-haven. Concentrate on your core businesses.”

Hubert Abt, added: “There is a lot of po tential for growth on the flex office side throughout the region.”

In summary the panel concluded, “Focus on the long-term play. In the short-term, there are good opportunities to deploy capi tal. There is huge potential in Serbia.”

Top Real Estate firms celebrated at the 12th annual CEE Investment Awards

by

EuropaProperty has successfully completed its 12th annual CEE Investment Awards at the Intercontinental Hotel in Warsaw, Poland. The awards ceremony was once again witnessed by a sizeable group of senior European and Central European real estate professionals; affirming the event’s status as a true land mark event for the investment sector.

Griffin Capital Partners, Revetas Capital, Fortress REIT and Capital Park Group were this year’s big winners, collecting multiple awards across all the main investment cate gories. CBRE Investment Management, Sav ills Investment Management, Solida Capital Europe and Gleeds also walked away with some of the big prizes.

Griffin Capital Partners picked up a couple of the main investment accolades including Opportunistic Investor and the coveted PRS Investor award. Some of the company’s year ly highlights included advising EPP on the sale of a 70 percent share of Towarowa 22 in Warsaw to AFI Europe. On the logistics side, the company’s logistics platform ELI sold the Nexus portfolio to CBRE Investment Man agement.

Revetas Capital was recognised by the jury for its successful multi-asset investment strategy in the region. The investor collected two awards including Retail and Value-add Investor. Union Investment picked up the Of

fice Investor award, and one noticeable deal closed by the company was the acquisition of the Szervita Square building in Budapest.

Savills Investment Management collected the Investment Deal award in the category €100 million + category for its acquisition of a couple of Invesco Real Estate’s logistic properties outside of Warsaw. In the Mega Deal category, Google and Ghelamco were awarded for their record-breaking single-as set transaction of the Warsaw Hub develop ment in the Polish capital.

Fortress REIT was recognised as the Core and Warehouse Investor for its acquisition and development strategy throughout the region. Investment recognition also went to CBRE Investment Management as Invest ment Asset Management Firm.

Capital Park Group’s Kinga Nowakowska was named this year’s Industry Profession al. The jury appreciated her professionalism and dedication in bringing the highly ap preciated mixed-use Norblin development

to realization in Warsaw. Another personal award was handed out to Gleeds’ retiring Managing Director Tadeusz Jachowicz for Lifetime achievement.

The Rising Star Award was presented to Solida Capital, a newcomer to the region, specialising in opportunistic investments. The company also received the Investment Deal award in the €20-50 million category for its acquisition of West 4 Business Hub in Wroclaw, a growing secondary location in Poland.

In the Investment Deal category €50-100 million Macquarie Asset Management’s acquisition of the Żabka BTS Radzymin de velopment was voted the best. Żabka and developer 7R also collected the Warehouse Development of the Year award for the same BTS distribution centre near Warsaw.

Widok Towers in Warsaw was voted Office Project of the Year. The recently developed office complex was deemed by the Jurors to be the best example of a leading Class A

Winston Norman

office development as well as accentuating the strength of Poland’s office market. Oth er developments recognised by the awards included the completely refurbished Norblin by Capital Park Group in Poland.

HB Reavis, a leading real estate develop ment and investment company operating in CEE and focusing on the development of large-scale commercial projects, took the Office Developer of the Year award, after be ing recognised by the Jury for its continued successful sustainable-development model across the region.

Accentuating the strength and interest in the region’s investment and development sectors, a number of developers were award ed for their recently delivered projects in all the main development sectors. Trei Real Es tate was recognised for continued success and development in the strongly perform ing retail park sector, winning the Retail Developer award. In the re-emerging hotel sector, the Hotel Developer award went to Puro Hotel Development.

ESG is now at the forefront of develop ment principles and is an important topic today. In this way, the challenges to the de velopment and investment industry and the implementation of such principles were tak

en into consideration when deciding on the winning projects.

UBM Development’s Hotel Mercure Ka towice Centrum was voted Hotel Project of the Year. Drucianka Campus, a new mixeduse urban regeneration project set for War saw by Liebrecht & wooD won the Future Project award. Kajima Properties Europe and its JV partner Tonsa along with Olivia Cen tre the scheme’s development and asset manager won the Residential Project of the Year award for their Modular BTR project in Gdańsk.

Panattoni was once again recognised as Warehouse Developer for its outstanding development expansion across the region and beyond. Echo Investment was awarded Residential Developer of the Year. The jury recognised the company’s growing Resi 4Rent Platform in Poland.

Bank PEKAO was voted this year’s Bank of the Year. The specialist bank was recognised for its core business of lending and the im portant role it plays in supplying credit to the real estate industry in these most challeng ing times.

Savills walked away with the Corporate Agency Award. Manufacturer of the Year went to Toyota Motor Group and DHL Sup

ply Chain was recognised as Logistics Com pany of the Year. The Property Management award went to Cushman & Wakefield. The Serviced Office Award went to New Work, and APA Wojciechowski walked away with the Architectural Firm of the Year award.

Further company awards went to Arcadis for Professional Service Provider, TPA Poland and Baker Tilly TPA was once again voted this year’s best Tax and Financial Adviser, and Dual Asset was voted the best Title Insurance Provider. Gleeds walked away with the Pro ject Management Firm award.

Other industry winners included Green berg as Law Firm, Kajima as Construction Firm and Strabag Property and Facility Ser vices for Facility Management Firm. Lodz picked up the City of the Year award.

E-commerce growth, innovation and suc cess were highlighted in the E-commerce category which was won by the online fash ion platform Zalando.

On behalf of our sponsors, judges and attendees, we offer our congratulations to all the winners. Foundations are already in place for next year’s event, which promises to be even better.

The 13th annual CEE Investment Awards will be held on October 26th, 2023.

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