ADOPTION OF AGENDA
Chair Koivisto postponed review and acceptance of the May 8, 2008 minutes until later in the meeting when a quorum was expected to be present. Linda Jones requested the Agenda be revised by moving the Michigan Wine and Spirits Competition Report to 4:00 p.m.

STAFF REPORTS - Linda Jones

• Lawton Ridge Winery is opening soon. It was the 57th winery approved by the Council as a producer of Michigan wine.
• Linda introduced Sheryl Goodreau, recently hired as a part-time Communications Assistant for the Council, and briefly summarized some of her responsibilities.
• Linda also introduced Paul Jenkins, Enology Education and Outreach Specialist from Michigan State University, who is providing enology educational support for the Michigan wine industry.
• Linda has met with representatives from Northwest Michigan College and Kalamazoo Valley Community College to discuss the establishment of enology education curricula in cooperation with VESTA (Viticulture and Enology Science and Technology Alliance).
• Linda applied for a USDA grant to promote "food and wine experiences." The proposal was not funded, but a similar proposal was granted in Vermont.
• Linda is working on the Council's 2009 Annual Plan. It will be finalized after promotion and research committees meet in September, and presented to the Council at the November meeting.
• Council Highlights for 2008 will be presented for approval at the November meeting.

MINUTES OF THE MAY 8, 2008 MEETING

THE CHAIR ASKED FOR ANY REVISIONS TO THE MINUTES OF THE MAY 8, 2008 MEETING. HEATHER PRICE MOVED THAT THE COUNCIL APPROVE THE MINUTES AS PRESENTED. DAN MATTHIES SECONDED. MOTION CARRIED UNANIMOUSLY.

BUSINESS DEVELOPMENT TASK FORCE

Dan Matthies briefly reported on a meeting held July 8 and submitted a report to Council staff (Attachment A). Linda commented that the committee will continue to meet one to two times per year. Julie Wendt commented that the State of Michigan's new "Business Services Improvement Portal" may provide additional resources for the Task Force. MDA is heavily involved in the project, which will be launched in January 2009 as a "one-stop shop" for business development needs.

RESEARCH AND EDUCATION ADVISORY COMMITTEE (REAC) REPORT - BILL Harrison, Chair

Bill reported that the main task of the REAC is to receive research grant proposals. The committee received 13 proposal from seven Michigan State University research teams. The committee will meet Sept. 4 to review the proposals and develop recommendations for the Council.

The REAC is revisiting the committee's priorities and plans to have a new list of priorities for the Council by the January 2009 Council meeting.

CONSUMER AND TRADE PROMOTION AND EDUCATION COMMITTEE REPORT - Heather Price, Chair

April Wine Month 2009 designation - Heather reported that the Promotion Committee was informed that April is both "Michigan Wine Month" and "National Alcohol Awareness Month." After much discussion, the committee came to the conclusion that the two can co-exist and even complement one another. The committee sees this as an opportunity to educate consumers on responsible consumption and recommends that the Council keep April as Michigan Wine Month.

MOTION: HEATHER PRICE MOVED THAT THE COUNCIL REQUEST THAT THE GOVERNOR DECLARE APRIL 2009 AS MICHIGAN WINE MONTH. DAN MATTHIES SECONDED. MOTION CARRIED UNANIMOUSLY.

REGULATORY ISSUES LIST
At the May meeting, a list was developed of issues within the wine industry. Council members felt it would be beneficial to share the list with WineMichigan to determine which of the issues falls within WineMichigan's priorities. There has been no response yet. Chair Koivisto commented that wineries need a consensus of opinion to get things done in Lansing. Julie Wendt agreed, saying that a coordinated effort is necessary and should include all players: retailers, wholesalers, regulators and wineries. Dave Anthony stated that wineries have to tell legislators what they want; there are narrow windows of opportunity to get your message heard.

ELIGIBILITY REVIEW - THREEFOLD VINE WINERY
Linda Jones stated that she received an application from Threefold Vine Winery to be added to the Council's list of producers of Michigan wine. Linda confirmed that the winery meets the eligibility requirements set forth by the Council and recommended to the Council that Threefold Vine Winery be approved.

MOTION: DAN MATTHIES MOVED THAT THE COUNCIL ACCEPT THE RECOMMENDATION AND APPROVE THREEFOLD VINE WINERY AS A "PRODUCER OF MICHIGAN WINE" FOR PROMOTIONAL PURPOSES OF THE COUNCIL. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

NEW BUSINESS

Annual Meeting 2009 - The meeting will be February 25-27, at Crystal Mountain Resort, in Thompsonville. Linda asked for input from Council members on topics for sessions.

Budget Planning for FY 2009 - Linda reviewed the budget spreadsheet distributed prior to the meeting (Attachment B). She reported that every three years, the Council receives a little extra funding from liquor license fee renewals, and that 2008 is one of those years. She commented that it will be an opportunity for special, one-time projects and offered two possible uses for the additional funding in 2009:

• Document the history of the Michigan wine industry - $10,000
• Wine trail grants were awarded in 2002 to help trails get started. Linda proposed offering "cooperative initiative grants" in 2009 - $25,000. Linda distributed proposed criteria for the grants prior to the meeting. There was overall agreement that this is something the Council should investigate. Chair Koivisto asked whether a subcommittee should be created to give staff guidance on guidelines and criteria before the November Council meeting. Heather suggested that the subcommittee should include members from both the promotion and research committees, plus Dave Anthony.

COUNCIL MEMBER REPORTS

Dan Matthies - Weather has caused crops to be a bit behind; last couple of years have been phenomenal; defoliating now to get more sun on the fruit; 27 acres planted, will be planting about 8.5 more acres - all vinifera.

Julie Wendt - Small distillers bill has passed and is now Public Act 5925. MLCC has received two applications for small distiller license: New Holland Brewing, and Entente (for new location). 547 direct shippers licensed in Michigan. A new commissioner, Colleen Pulver, has been appointed but not confirmed yet.

Melinda Remer - Warm weather advertising is done; Travel Michigan is partnering with Blue magazine and MUCC for outdoor activities. First-ever winter advertising campaign this year - Chicago, Green Bay, South Bend, Fort Wayne, Toledo. National campaign in March - four new ads - $10 million for cable TV. Lake Michigan Shore/Harbor Country radio ad aired in Chicago area - inquiries and clicks went up.

Doug Buhler - Specialty Crop Research Initiative Grants - some proposals have grapes included - total of $28 million - MSU will submit proposals for more than that. Spartan Cellars is back up and running. New vineyards are planted on campus and at experiment stations. Doug invited Paul Jenkins to speak. Paul is developing educational programs for four events: Wine Industry Annual Meeting, Great Lakes Expo, Northwest Orchard and Vineyard Show, and Southwest Horticulture Days.

Heather Price - Light frost, lost a little, missed the hail, also defoliating at this time. Ordered Marquette vines for the first time - pulling out some older vines. Upcoming "Pampering Day" has 80 signed up. Sandhill Crane Vineyards will celebrate its 5th anniversary in September - there were 40 Michigan wineries at that time, and 58 now.

Dave Anthony - He also planted Marquette, a Pinot Noir hybrid that is good to 38° below - read about it, planted it without ever tasting the wine. It's been a good year for growing in the U.P. - rained every week in June and July - good growth - no problem with mildews - now it's hot and dry, so grapes should ripen nicely. 3.5 acres now, planting one more acre next year.

Amanda Danielson - Summer was extraordinary - film festival and overall business is good; Michigan Wine Competition was well-organized, and overall quality of wines was phenomenal. Had an opportunity to view northern Michigan from the sky - amazing - we are very fortunate to live in and serve this state.

MICHIGAN WINE AND SPIRITS COMPETITION REPORT - CHRIS COOK

Chris complimented David Creighton on building the reputation, credibility and efficiency of the competition. Chris was taken with the overall quality of the wines entered. Frontenac won Best of Class Dry Red Wine - showed refinement and elegance. Winemakers have used hybrid varieties for years, then moved to vinifera, learned to refine their techniques, now are going back to hybrids and implementing that expertise in those wines. Competition ran very smoothly. Linda Jones commented that the Competition Advisory Board guides the staff on procedures, etc. Chris commented that when the competition reaches 400 wines entered, there will be a need to reevaluate how things are done.

Dan Matthies presented a comment from Charlie Edson, who was unable to attend the meeting. "Why was there no Best of Class Sparkling Wine?" Chris responded that the votes for each of the gold medal wines were very light - judges decided not to award because, with the vote of 20-4, none were worthy of a Best of Class designation. Amanda added that this shows a "check and balance" - and that wines of Michigan are good enough that it's not necessary to award a wine that is not deserving.

PUBLIC COMMENT

Bill Harrison complimented the competition's excellent process. Linda Jones reconfirmed that much of that is due to David Creighton's efforts in years past. Bill also commented that in Oregon, there were 20 new wineries in seven years and he believes that vineyard mapping helped that growth. Bill also commented that he agrees with April as Michigan Wine Month - spring is a time to draw people's attention, they're coming out of winter and looking for things to do.

OTHER BUSINESS

Next meeting is November 13. Linda asked whether Council members would like to meet at different locations throughout the state - might encourage wineries to attend if the meeting is in their region. Response was positive, and a suggestion was made that additional activities (e.g., tours) could be scheduled in conjunction with Council meetings.

ADJOURNMENT

MOTION: MELINDA REMER MOVED THAT THE MEETING BE ADJOURNED. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

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

A. Business Development Task Force Report

B. FY 2009 Approved Budget