MINUTES
Michigan Grape and Wine Industry Council
August 3, 2006
2:00 p.m.
Constitution Hall
Lansing, Michigan
Approved October 5, 2006

Members Present:
Mitch Irwin, Director, Michigan Department of Agriculture
Melinda Remer, Travel Michigan
David Miller, St. Julian Wine Co.
Ron Perry, Michigan State University
Liz Berger, Chateau Chantal
Joe Herman, Herman Farms
Julie Wendt, Michigan Liquor Control Commission

Members Absent:
Lou Gostinger, Lakeside Beverage
Kristin Jonna, Merchant's Fine Wine

Others Present:
Linda Jones, Michigan Grape and Wine Industry Council
David Creighton, Michigan Grape and Wine Industry Council
Karel Bush, Michigan Grape and Wine Industry Council
Robin Usborne, Michigan State University
Mike DiBernardo, Michigan Department of Agriculture
Misty Syts, Michigan Department of Agriculture
Christopher Cook

Chair Irwin called the meeting to order at 2:05 p.m. He welcomed those in attendance and stated that Don Coe was appointed to the Commission of Agriculture and consequently resigned from the Council.

Adoption of Agenda

THE CHAIR ASKED FOR ANY REVISIONS OR ADDITIONS TO THE AGENDA AND HEARING NONE HE ORDERED ADOPTION OF THE AGENDA AS DISTRIBUTED PRIOR TO THE MEETING.

Minutes of the May 17, 2006 Special Meeting

MOTION: RON PERRY MOVED TO ACCEPT THE MAY 17, 2006 MINUTES. SECONDED BY JOE HERMAN. MOTION CARRIED UNANIMOUSLY.

STAFF REPORT - LINDA JONES

• Linda highlighted some of the recent publicity the Michigan wine industry has received in various publications.
• Linda introduced Chris Cook, superintendent of the Michigan Wine & Spirits Competition, to present a brief report:
  • Number of entries has increased from 180 four years ago to more than 340 entries this year
  • Three Master Sommeliers served as judges for the competition Many distinguished judges including Scott Harvey, a well-known and well-respected California winemaker, who was especially impressed with the Michigan Riesling wines entered
  • The quality of the red wines has improved over the years and received a much greater number of medals than in previous years
  • New wineries did very well in the competition
  • Out-of-state judges were impressed with the quality, which increases respect nationwide for Michigan wines
  • The number of entries has increased enough to require another panel of four judges (currently five panels of four)
  • Robin Usborne asked whether the wineries use the Michigan competition as a "stepping stone" to other national competitions. Chris replied that it's not really a stepping stone, that some of the wineries see this as an indication of their place in the state and among competing wineries. David Creighton added that some wineries might use this as a stepping stone for 2007 competitions.
• Linda cited some upcoming events where Michigan wines will be served:
  • Vin Voyage, August 25
  • Governor's Luncheon and Youth Auction at the Michigan State Fair, August 30
  • Wine and Food Festival at Meadow Brook Music Festival, September 15-17
  • Detroit Uncorked, September 29
• Linda stated that she is preparing a proposed Council budget for Fiscal Year 2007 and will present the budget for review and approval at the next meeting. She distributed a draft copy of "Key Council Projects" that will be used in deciding a budget for the year (Attachment A).
• Chair Irwin commented that the National Governor's Association is meeting in Traverse City in 2007 and that Michigan State University will hold an event in fall of 2007 celebrating the 100-year anniversary of their horse-breeding program. He suggested that Council staff contact those organizations and try to have Michigan wines available.

PROMOTION COMMITTEE REPORT - LIZ BERGER

• Liz reported that the Promotion Committee has not met since the last Council meeting, but there are ongoing projects:
  • Results of the Promotion project to define the "Michigan Wine Experience" by Consumer Research consultant Karen Peterson at the 2006 Michigan Wine Industry Annual Meeting. Liz Slater (CA based marketing consultant) delivered excellent presentations on Marketing wine.
  • Wineries, visitor bureaus, Travel Michigan and others in the tourism industry met during the Michigan Lodging and Tourism Conference in March to brainstorm ways to form relationships between different sectors of the tourism industry (e.g., packaging a winery tour with lodging and restaurant)
  • Michigan Wine Country magazine was released in early April as a kick-off to April Wine Month; individual wineries, wine trails and retailers used the opportunity to promote Michigan wines
  • LKF Marketing completed an analysis of the Michigan Wines website (www.michiganwines.com) and presented a draft Web Strategic Plan in June; next step is to get estimates and set priorities for implementing the plan
  • Melinda Remer suggested that with the increased promotional value of April Wine Month in 2007, Council should consider an increase in print quantity

RESEARCH AND EDUCATION ADVISORY COMMITTEE (REAC) REPORT - DAVE MILLER

• Sessions presented by the REAC at the Michigan Wine Industry Annual Meeting were well-received
• Presentation to MSU Dean, Experiment Station Director and Department Chairs was very well-received
  • A new Enology Extension position was announced. No applications were received before the July 15 deadline, so deadline has been extended to November 1, 2006.
  • Plans to renew the position currently held by Stan Howell was announced; however, the industry must find ways to provide support funds. Director Irwin is working with WineMichigan to explore possibilities. There is a three-year window to get this done.
• Ongoing discussions with MSU Extension to coordinate and organize annual meetings for viticulture and enology resulted in a request for and granting of GREEEN matching funds for programs at Great Lakes Expo. Grape sessions at the Expo have expanded from one half-day to a day and a half - half-day each of enology, research presentations and grape growing. Linda Jones commented that there will be a Grape Industries Lunch at the Expo, with keynote speaker Jim Trezise from the New York Wine & Grape Foundation.
• Call for research proposals - $50,000 will be dedicated to match MSU funds for an enology position for two years. REAC will review proposals and make recommendations at REAC meeting September 7.

BUSINESS DEVELOPMENT GROUP REPORT - JULIE WENDT

• June 23 was the first meeting. In attendance were representatives from: MDA, Michigan Liquor Control Commission, Michigan Economic Development Corp., MSU Product Center, and Small Business Technology Development Center. From that meeting came the following action items:
  • Organizations will update their websites with cross links to others in the meeting as well as other appropriate resources
  • MLCC will send out a Council Start-up Guide to individuals initiating an application for a winery license
  • The group will review the Start-up Guide in advance of the next meeting and suggest revisions. A revised Start-up Guide may be printed in 2007.
  • A list of contact information for participants in the meeting was distributed.
• Julie asked for input from the Council on future direction for the group. Liz Berger commented that the federal forms and regulations are even more intimidating than the state's and that representatives from federal agencies might attend a Business Development Group meeting. Joe Herman commented that sample forms are very helpful.
• Linda Jones asked whether the Business Development Group should become a formal sub-committee of the Council. She will bring a recommendation to the next Council meeting regarding a mission statement for the committee.

NEW BUSINESS

• Eligibility Review of New Wineries:
  • Pleasantview Vineyards
    Linda Jones stated that she received an application from Pleasantview Vineyards, to be added to the Council's list of producers of Michigan wine. After investigation, Linda recommended to the Council that Pleasantview Vineyards be approved.

MOTION: RON PERRY MOVED THAT THE COUNCIL ACCEPT THE RECOMMENDATION AND APPROVE PLEASANTVIEW VINEYARDS AS A "PRODUCER OF MICHIGAN WINE" FOR PROMOTIONAL PURPOSES OF THE COUNCIL. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.

• Free Run Cellars
  Linda Jones stated that she received an application from Free Run Cellars, to be added to the Council's list of producers of Michigan wine. After investigation, Linda recommended to the Council that Free Run Cellars be approved.

MOTION: RON PERRY MOVED THAT THE COUNCIL ACCEPT THE RECOMMENDATION AND APPROVE FREE RUN CELLARS AS A "PRODUCER OF MICHIGAN WINE" FOR PROMOTIONAL PURPOSES OF THE COUNCIL. DAVE MILLER SECONDED. MOTION CARRIED UNANIMOUSLY.

• Resolution Honoring Dr. G.S. Howell: Linda Jones presented to the Council the draft of a resolution to be presented to Stan Howell in recognition of his contribution to the Michigan grape and wine industries (Attachment B).

MOTION: LIZ BERGER MOVED THAT THE COUNCIL APPROVE THE DRAFT OF THE RESOLUTION TO BE PRESENTED TO G. STANLEY HOWELL. DAVE MILLER SECONDED. MOTION CARRIED UNANIMOUSLY.

• Food Code Review: Linda Jones stated that the 2000 Food Code is being revised. She commented that there is a lack of standardization between inspectors and that there is a need for a guide for inspectors to use and for wineries to refer to in preparing for an inspection. Chair Irwin suggested that Kathy Fedder, director of the MDA Food and Dairy Division, present the proposed new Food Code to the Council. He also suggested that there be a Food Code training session at the Wine Industry Annual Meeting.

PUBLIC COMMENT
No public comment.

COUNCIL MEMBER REPORTS

• Melinda Remer: Presented the new "PureMichigan" TV, radio, print and billboard ads to the Council. Promotions will eventually air in all six out-state markets. The "branding" concept for PureMichigan is that Michigan is a special place to visit, to take you out of your daily routine, and highlights the state's natural assets and authentic attractions.
• Dave Miller: The April frost resulted in a 90% loss of Concord and Niagara grapes - the worst in 30 years; wine grapes received little damage, mostly in the earliest varieties. Sales are up for St. Julian; traffic is good in the tasting room. Winery recently installed new tanks to accommodate increased production.
• Ron Perry: There are six university positions to fill, and Ron is spending much of his time interviewing candidates. Deadlines for applicants: Viticulture position, October 1; Enology position, November 1. Tom Zabadal has been promoted to full professor.
• Liz Berger: Conditions in the vineyard are about the same as last year at this time, with no frost damage. The B&B is doing well. The winery is holding small weddings again.
• Joe Herman: Southwest Trail's Lake Michigan Shore event was very successful; all but one winery participated; expected 1,500 to attend - there were 4,000. Sprayed grapes this week; crop is about the same as last year.
• Julie Wendt: 246 direct shipping permits have been issued, including 25 from Michigan wineries. Out-of-state retailers are suing the State of Michigan because in-state retailers can sell direct to consumers but they cannot. Online label registration and approval should be live by the end of the year.

OTHER BUSINESS
Next meeting will be at Constitution Hall, in Lansing; date to be determined.

ADJOURNMENT
The meeting was adjourned at 4:15 p.m.

The following documents are on file in the Michigan Grape and Wine Industry Council office and can be obtained upon request:

1. Michigan Grape and Wine Industry Council Key Projects 2006-2007 (draft)
2. Michigan Grape and Wine Industry Council Resolution in Honor of G. Stanley Howell