ADOPTION OF AGENDA
Linda Jones requested the Agenda be revised by moving WineMichigan Report to 2:30 p.m., and by adding Chicago Gourmet and Loan Cooperative to New Business.

MINUTES OF THE AUGUST 7, 2008 MEETING

THE CHAIR ASKED FOR ANY REVISIONS TO THE MINUTES OF THE AUGUST 7, 2008 MEETING. STEVE ARBAUGH MOVED THAT THE COUNCIL APPROVE THE MINUTES AS PRESENTED. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

STAFF REPORTS - Linda Jones

• Linda briefly reviewed the contents of a folder to be passed around the table for Council member review.
• Linda distributed "Highlights Report FY 2008" (Attachment A) and presented graphs that illustrated some of the key trends outlined in the report. The Council's "Annual Plan FY 2009" (Attachment B) was distributed prior to the meeting.
• Rural Business Enterprise Grant Proposal - No proposal was submitted for this round of grants. Linda stated that staff time is better spent on existing efforts and programs at this time. In addition, Linda reported that she did apply for a Federal-State Marketing Improvement Program (FSMIP) grant, but the Council was not successful in receiving the grant. Bob Jacobson suggested that the Council could strongly encourage the industry to match Council funds for a grant if an idea is good enough. Steve Arbaugh commented that the Council's Strategic Plan is a good source for ideas. Chair Koivisto commented that the upcoming change in administration could have an impact on grant evaluations. Melinda Remer reminded the Council that Travel Michigan can match industry funds for PureMichigan promotional efforts.
• Annual Meeting 2009 - Linda reviewed the proposed agenda and asked for input from Council members on additional speakers and sessions. Linda also noted that Council staff has visited and is evaluating potential new sites for the 2010 meeting. A recommendation will be presented at the January Council meeting. Linda also commented that Duane Peterson may be eligible for a 25-year award from the Council. She is confirming with Michigan Liquor Control Commission. Chair Koivisto commented that presentation of these types of awards provides an opportunity for favorable publicity and sends a positive message about the industry.

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

• Bill reported that the Committee met September 4. The Committee reviewed 13 proposals received from seven researchers or research groups for grants offered by the Council. The Committee recommends approval of funding for eight proposals, for a total of $93,596 (Attachment C). The Committee also recommends reserving some additional funds to support proposals that are being revised. All proposals are available for review at the Council office.
• Other items from the September 4 agenda:
  • Membership: Bill Harrison, Charles Edson, David Miller, Lee Lutes, Joe Herman, Doug Buhler
  • MSU Update from Doug Buhler - MSU is developing GIS maps on grape growing
  • Viticulture Consortium Update
  • National Grape and Wine Initiative Update - Committee is modifying Michigan's research priorities to align with this initiative's priorities
  • Rural Business Enterprise Grant - Committee asserts that this is not the best time to dedicate resources to this grant
  • Community College Training Programs and VESTA
  • Great Lakes Expo Program Planning
  • Wine Industry Annual Meeting
  • Final Reports for 2007 Research Projects
  • Research Priorities for FY 2010

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

• Heather reported that a new publisher has been contracted to produce the 2009 Michigan Wine Country magazine. Competitive bids were received by HOUR Custom Publishing (former publisher) and BoothMichigan. BoothMichigan was chosen primarily because of a substantial online presence included in value-added benefits of their proposal, but their proposal was also enhanced by their long-term relationship with other members of the tourism industry in Michigan. Heather introduced Dan Sippel and Monique Van Epps from BoothMichigan, who gave a brief description of BoothMichigan and mlive.com (online affiliate).
• The Committee will work with Council staff to help expand restaurant by-the-glass promotions for Michigan Wine Month in April 2009.
• The Committee continues to refer to the Council's Strategic Plan for guidance in promotional efforts.
• The Council contracted with a professional photographer this summer who traveled throughout the Southwest and Northwest wine regions. The Council purchased 65 new photos as a result of the photo shoot.
• Linda Jones noted that a Web Report was sent to members prior to the meeting.

WINEMICHIGAN REPORT - Bob Jacobson

• Bob reported that there has been a bill introduced to eliminate the ban on "horizontal ties" in the industry (Senate Bill 1624).
• PA 218 of 2008 establishes a small distiller license and allows small distillers to sell their spirits at retail and also provide samples of their product at the distillery. Julie Wendt commented that three licenses have been issued at this time. Julie also stated that Senate Bill 1595 would allow sampling of spirits at offsite tasting rooms.
• Bob stated that with many issues surrounding charging for tastings and wine by-the-glass sales at the winery, the topics should be discussed at the Owners' Meeting session at the Annual Meeting in February.
• Chair Koivisto commented that if legislation is agricultural in nature, the MDA legislative liaison can help in the Council's effort.

MICHIGAN STATE UNIVERSITY - Doug Buhler

• Doug reported that the university is searching for a Chair of the Horticulture Department and that four interviews have been scheduled. He commented that the Council representative from MSU has historically been the chair of the department, but that will be reevaluated when the position is filled.
• Doug briefly described the MSU representative's role on the Council as broadly representing MSU and making resources available to the grape and wine industries.
• Doug also provided an explanation of the role of the Michigan Ag Experiment Station and Ag Extension in the College of Ag and Natural Resources' and MSU's missions.
• The Viticulture and Enology (V&E) certificate program has been eliminated, but the university is looking for other learning and teaching opportunities. Linda Jones added that every faculty member is assigned a percentage of different segments of the industry.
• Doug introduced Tom Smith, who gave a brief description of MSU's Institute of Agricultural Technology. Tom stated that there is a renewed interest in a V&E program, but in an off-campus format. VESTA is an online program that provides certification through a community college. VESTA will work with the Institute to offer classes as part of an existing Applied Plant Science program. Tom also announced a proposed change to the name of the Institute of Agricultural Technology - proposed name is Institute for Agricultural, Environmental and Applied Technologies.
• Linda Jones commented that there will be a presentation about VESTA at the Great Lakes Expo in December.

  MOTION: DAVE ANTHONY MOVED THAT THE MICHIGAN GRAPE AND WINE INDUSTRY COUNCIL WILL ENCOURAGE MICHIGAN STATE UNIVERSITY TO PURSUE COMMUNITY COLLEGE VITICULTURE AND ENOLOGY PROGRAMS IN NON-TRADITIONAL EDUCATIONAL VENUES. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

• Doug called upon Paul Jenkins, Small Fruit Education Coordinator for MSU, who briefly described educational programs proposed for the Wine Industry Annual Meeting, the content of which is the result of winemaker input. Paul stated that overall education is the goal of the sessions - both introductory and more advanced information will be presented.

ELIGIBILITY REVIEW OF APPLICATIONS FOR PRODUCERS OF MICHIGAN WINE
Linda Jones stated that she received applications from five wineries to be added to the Council's list of producers of Michigan wine: Wolcott Orchards, Fox Barn Winery, and Silverleaf Vineyard and Winery all have their MLCC and MDA licenses in place; Douglas Valley Winery and Founders Winery do not have all required licenses yet. Linda confirmed that all wineries meet other eligibility requirements set forth by the Council. After brief discussion, it was decided that voting on Founders' and Douglas Valley's applications would be tabled to the January 22, 2008 meeting.

MOTION: STEVE ARBAUGH MOVED THAT THE VOTE FOR FOUNDERS WINERY AND DOUGLAS VALLEY WINERY BE TABLED TO THE JANUARY 22, 2008 COUNCIL MEETING. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

NEW BUSINESS

Grants Criteria for FY 2009 - Prior to the meeting, Linda Jones distributed Proposed Criteria for Cooperative Grants for Michigan Wineries and Wine Grape Growers for FY 2009 (Attachment D). After brief discussion, two changes were made to the criteria.

MOTION: MELINDA REMER MOVED THAT THE MICHIGAN GRAPE AND WINE INDUSTRY COUNCIL OFFER GRANTS TOTALING $25,000 TO GROUPS WITHIN THE MICHIGAN WINE INDUSTRY IN 2009 ACCORDING TO THE ELIGIBILITY CRITERIA, DEADLINES AND EVALUATION CRITERIA PRESENTED IN THE DRAFT DOCUMENT DATED NOVEMBER 13, 2008. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

COUNCIL MEMBER REPORTS

Melinda Remer - Travel Michigan is into a winter advertising campaign in Chicago, including TV, radio, print and outdoor advertising. They have added outdoor advertising in feeder markets. March 30 begins a first-ever national advertising campaign running through May that involves cable TV buys of $10 million. Travel Michigan is also revamping their website in anticipation of this new promotion.

Heather Price - Harvest is almost complete; raspberries were early, September to November for grape harvest. Sandhill Crane has found a niche market with their Sandhill Crane Watch events in September and October. The winery received a USDA value-added grant for increasing their mead production. New products include an Asian pear mead and apple cider mead; they'll be introducing more variations in 2009.

Julie Wendt - There's a flurry of recent legislation that may impact the wine industry. Three small distiller licenses have been issued: Michigan Brewing Company, Entente Spirits, and New Holland Brewing. Direct Shipping permits have been issued to 600 applicants.

Steve Arbaugh - Year-to-date through October: Overall wine sales is up 2.8%, sales of Michigan wine is up 6.97%. For August through October, overall sales are up 2%, sales of Michigan wine is up 0.93%.

PUBLIC COMMENT

No public comment.

OTHER BUSINESS

Next meeting is January 22. Other tentative meeting dates and locations for 2009 are: May 7 in Traverse City, August 6 in East Lansing, and November 19 or December 3 in Southwest Michigan.

ADJOURNMENT

MOTION: HEATHER PRICE MOVED THAT THE MEETING BE ADJOURNED. MELINDA REMER 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. Highlights Report FY 2008

B. Annual Plan FY 2009

C. Recommendations for Grant Funding of Research Projects for FY 2009

D. Proposed Criteria for Cooperative Grants for Michigan Wineries and Wine Grape Growers for FY 2009