Adoption of Agenda

MELINDA REMER MOVED THAT THE COUNCIL ADOPT THE AGENDA AS DISTRIBUTED. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.

Minutes of the January 12, 2007 and February 20, 2007 Meetings

THE CHAIR ASKED FOR ANY REVISIONS TO THE MINUTES OF EITHER THE JANUARY 12, 2007 OR FEBRUARY 20, 2007 MEETING. STEVE ARBAUGH MOVED THAT THE COUNCIL APPROVE THE MINUTES OF BOTH MEETINGS. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.

STAFF REPORTS

Michigan Wine Country magazine - Karel Bush
Karel summarized the April distribution of the magazine. Postage will increase in May, which will increase cost of mailing the publication by approximately $2,000 per year. There was a problem with the printing of the magazine that was not realized until nearly 100,000 had been distributed. The Council received a $1,500 credit on the 2007 printing invoice.

2007 Annual Meeting wrap-up and proposal for 2008 - Karel Bush
Karel commented briefly on the 2007 meeting. She noted that the 2008 proposal from Crystal Mountain included an increase of $3 per hotel room and asked for the Council's approval to move forward with plans for the 2008 meeting ? February 27-29 at Crystal Mountain Resort.

MOTION: LIZ BERGER MOVED THAT THE 2008 MICHIGAN WINE INDUSTRY ANNUAL MEETING BE HELD AT CRYSTAL MOUNTAIN RESORT FEBRUARY 27-29, 2008. DAVE MILLER SECONDED. MOTION CARRIED UNANIMOUSLY.

Michigan Wine & Spirits Competition - David Creighton
David reported that he anticipates more than 400 wines to be entered in the 2007 competition, which requires an additional panel of judges, for a total of 24. Twenty-one have confirmed their participation in the competition, which will take place August 7, 2007, at Kellogg Hotel & Conference Center in East Lansing. David commented that due to current State of Michigan budget restraints and the possibility that Council staff may not be able to purchase items or services necessary to run the competition, he is seeking an organization to receive the revenue (entry fees) and pay expenses from that revenue. He requested guidance from the Council regarding offers from two organizations ? WineMichigan and Leelanau Peninsula Vintners Association ? to handle the finances. Council members expressed appreciation for the generous offers from these two organizations, but did not believe that either would be an appropriate arrangement. Alternatives were suggested to David; he will follow up and report back to the Council.

Eligibility Review Task Force - David Creighton
David reported that this committee met in November 2006. It was determined that there is a need for the committee to meet prior to the August Strategic Planning session to discuss criteria for wineries to be included in Council promotional materials.

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

• The REAC met immediately prior to this meeting. They reviewed the Council's research and education priorities and determined that they shall remain the same as FY07.
• Requests for Proposal for FY08 Research and Education Grants will be sent in early June, with a deadline of August 1, 2007. The REAC will review proposals and provide recommendations for funding to the Council in early September.
• Dave briefly reviewed the history of the Council's commitment to fund an MSU Enology position. He stated that there is a lack of qualified candidates nationwide. Charlie Edson commented that the challenges include that this is a two-year position, the qualifications are high, and the salary is marginal. Dave said that Doug Buhler and Ron Perry are working to expand the pool of candidates by reevaluating the requirements for the position. Their recommendations will be provided to the REAC by July 25, 2007. Chair Irwin asked whether an MSU graduate student might be a suitable candidate. Charlie responded that a student would not be able to meet the needs of the industry. Dave added that MSU does not have a graduate program in enology.
• Dave reviewed a proposal from USDA National Agricultural Statistics Service (NASS) that requested funding support for data analysis and reporting from the 2006-2007 Fruit Rotational Survey. This information is vital to the Michigan grape and wine industries and was used in a recently released economic impact report. NASS needs $2,850 for analyzing grape data. Council suggested that National Grape Cooperative be approached for half the support, so that the Council's support would be $1,425.
  

  MOTION: MELINDA REMER MOVED THAT THE COUNCIL PROVIDE $1,425 TO SUPPORT THE REPORTING FROM THE 2006-207 FRUIT ROTATIONAL SURVEY. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.
   
  MOTION: LIZ BERGER MOVED THAT THE COUNCIL PROVIDE THE FULL FUNDING OF $2,850 IF NO OTHER FUNDING SOURCE CAN BE SECURED. MELINDA REMER SECONDED. MOTION CARRIED UNANIMOUSLY.

• Dave Miller also provided information regarding a proposed Winery Activity Survey to be conducted in early 2008. The estimated cost to the Council would be $2,500, depending on survey complexity. Council tabled discussion until Linda Jones returns, and proposed that this be discussed at the next meeting.

PROMOTION COMMITTEE REPORT - LIZ BERGER

• Liz commented that the Michigan Wine Country magazine is a very valuable, comprehensive resource, and is one of the most important promotional pieces the Council uses.
• Liz described a few of the promotions for Michigan Wine Month in April, including restaurants, wineries and retailers.
• Saveur magazine's web site, www.saveur.com, has a new section for wine. Because they want to populate the site, they are offering free basic winery listings. Council staff submitted information for all Michigan wineries.
• Web Redesign ? $25,000 was budgeted for redesign. That has been spent. Karel Bush is now migrating current content to new pages. There are still some areas that require additional expenditures for programming. A new quote will be submitted in September for the work that needs to be done yet in FY08. The new site is scheduled to launch in November 2007.
• Liz provided an overview of a proposal sent to the Council for production of a PBS television show that would air on 100 PBS affiliates for three years. The proposal was distributed to Promotion Committee members prior to the meeting and they provided feedback to Liz. The committee recommends that Council staff research the offer more thoroughly and request a formal proposal from the producer of the show.

NEW BUSINESS

Farmers' Market/Winery Bills
Liesl Clark provided a brief overview of House Bill 4117 and Senate Bill 142, both of which would allow a winery to sample and sell wine at a farmers' market. Liesl stated that the Senate Bill is being redrafted and may move first, but that the budget is taking priority. Melinda Remer asked whether an analysis of the bills had been done. Liesl responded that the Michigan Liquor Control Commission is the lead agency for both bills and that MDA has not done an analysis, but that we can.
 
Michigan Office of National Ag Statistics Service Budget Cuts
Dave Kleweno provided a brief summary of the funding needed to complete the data analysis and reporting from the 2006-2007 Fruit Rotational Survey. He expressed appreciation to the Council for allocating funding to this as a short-term solution, but also indicated that the Council might consider allocating long-term support for the research.
 
Eligibility Review of New Winery: Clay Avenue Cellars
David Creighton reviewed the application received from Clay Avenue Cellars, which was distributed to Council members prior to the meeting.

MOTION: LIZ BERGER MOVED THAT THE COUNCIL APPROVE CLAY AVENUE CELLARS AS A "PRODUCER OF MICHIGAN WINE" FOR PROMOTIONAL PURPOSES OF THE COUNCIL. DAVE MILLER SECONDED. DISCUSSION ENSUED.

COUNCIL MEMBER REPORTS

• Steve Arbaugh - Sales of all wine in the first quarter was up 6%, while Michigan wine sales increased 30%. Sales of all table wine increased 6%; sales of red wines increased 9%.
• Melinda Remer - PureMichigan TV ads will begin soon; $11.3 million of campaign was spent on out-of-state promotion, $1.2 million was spent in-state. Inquiries are up. There has been a 37% increase in web visitors.
• Liz Berger - Wine Month in April kicked off successful sales events. The cherry trees are in blossom - May 19-20 are Blossom Days on Old Mission Peninsula. The wine trail will hold its first outdoor festival after Labor Day this year.
• Dave Miller - Sales are strong, up 30-40%. The vines look great, with very little winter damage. Other states were hit with cold weather and are looking for grapes to buy from Michigan.
• Charlie Edson - Echoed comments of other Council members. Grapes show very little winter injury, and they're budding.

PUBLIC COMMENT

No public comment.

OTHER BUSINESS

• Proposed meeting dates: August 27-28, Strategic Planning Session, in East Lansing; and November 15, in Lansing.
• Mitch Irwin - The National Governors' Conference is in July. The Council is providing funds for staff time to help coordinate the conference. The funds will come from Linda Jones's salary.

ADJOURNMENT

MOTION: LIZ BERGER MOVED THAT THE MEETING BE ADJOURNED. MELINDA REMER SECONDED. MOTION CARRIED UNANIMOUSLY.