ADOPTION OF AGENDA

MOTION: AMANDA DANIELSON MOVED THAT THE COUNCIL ADOPT THE AGENDA AS DISTRIBUTED. STEVE ARBAUGH SECONDED. MOTION CARRIED UNANIMOUSLY.

MINUTES OF THE AUGUST 28, 2007 MEETING

THE CHAIR ASKED FOR ANY REVIEW OF THE MINUTES OF THE AUGUST 28, 2007 MEETING. STEVE ARBAUGH MOVED THAT THE COUNCIL DISPENSE WITH REVIEW OF THE MINUTES, AS THEY WERE DISTRIBUTED PRIOR TO THE MEETING. LIZ BERGER MOVED THAT THE COUNCIL APPROVE THE MINUTES AS DISTRIBUTED. AMANDA DANIELSON SECONDED. MOTION CARRIED UNANIMOUSLY.

INTRODUCTION OF SHARON KEGERREIS AND LORRI HATHAWAY

Sharon Kegerreis and Lorri Hathaway were introduced to the Council and briefly reviewed their experiences with wineries in writing the book From the Vine: Exploring Michigan Wineries. They thanked the Council and staff for their support and contributions to the publication.

STAFF REPORTS - Linda Jones

Annual Report for Fiscal 2007 - The Annual Report (Attachment A) was distributed to Council members prior to the meeting. Linda briefly reviewed the report.

E-news for Council members - Linda reminded Council members that they should be receiving the monthly consumer e-newsletter, as a way to keep them informed about events and industry news. She also mentioned that the monthly industry e-newsletter should be of value to Council members in communicating with the industry regarding Council activity.

Wine Across America book release - Linda briefly described this publication and the Council's role in securing a spot for Michigan in the displays being created to promote the book.

Industry News - Linda briefly reviewed several news items and promotional pieces that have been published regarding the Michigan wine industry.

Annual Plan for Fiscal 2008 - The Annual Plan (Attachment B) was distributed to Council members for their review.

Strategic Planning - Linda briefly described the strategic planning exercise that took place earlier in the day, as a follow-up to the August 28 session, and commented that she will compile a summary of the resulting ideas and distribute to Council members. Participants will meet one more time, in January, to finalize an action plan.

MOTION: AMANDA DANIELSON MOVED TO ACCEPT THE STAFF REPORT AND ANNUAL PLAN. CHARLES EDSON SECONDED. MOTION CARRIED UNANIMOUSLY.

MICHIGAN WINE AND SPIRITS COMPETITION ADVISORY COMMITTEE REPORT - Linda Jones, David Creighton, Christopher Cook (via telephone)

Linda briefly summarized the background of Christopher Cook, Superintendent of the Wine and Spirits Competition. Council members were asked to refer to a letter drafted in response to a letter received from Walter and Eileen Brys, from Brys Estate Vineyard & Winery, regarding one of their wines in the 2007 competition (Attachment C).

MOTION: LIZ BERGER MOVED TO APPROVE THE DRAFT OF THE LETTER FROM CHRISTOPHER COOK TO WALTER AND EILEEN BRYS. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

VITICULTURE AND ENOLOGY RESEARCH AND EDUCATION ADVISORY COMMITTEE (REAC) REPORT - Dave Miller

Dave reported that the last time the Council met, the REAC made recommendations for funding research grants. Those recommendations were accepted, funding was approved and the paperwork is now in process. Dave also reported that, depending on what happens with the Farm Bill, the Viticulture Consortium may receive funding for grants; the Consortium previously funded six or seven projects from Michigan.

Great Lakes Fruit, Vegetable and Farm Market Expo takes place Dec. 4-7, 2007, at DeVos Place in Grand Rapids. The Council is sponsoring a Grape Industries Luncheon and has worked with Michigan State University to offer grape-related educational sessions.

A wine filtration workshop will be included in the program of the Michigan Wine Industry Annual Meeting in February 2008.

MICHIGAN STATE UNIVERSITY UPDATE - Doug Buhler

Doug provided a brief update regarding the Michigan State University viticulture position. It has been redefined to include a formal Extension appointment, which links research to outreach more closely.

Although there were no funds available through Viticulture Consortium last year, Doug commented MSU was able to maintain existing projects through a USDA bridging grant to MSU

There are two new research vineyards -- one each in the Southwest and Northwest. With a change in staff at the Northwest Horticultural Station, there is increased interest in wine grape research.

An upcoming planning session for MSU's viticulture program will address some issues brought up in the Council's strategic planning session.

MOTION: AMANDA DANIELSON MOVED TO ACCEPT THE REPORT FROM THE RESEARCH AND EDUCATION ADVISORY COMMITTEE. LIZ BERGER SECONDED. MOTION CARRIED UNANIMOUSLY.

PROMOTION AND CONSUMER EDUCATION COMMITTEE REPORT - Liz Berger

Liz reported that the committee held a teleconference meeting October 18 where several promotional items were discussed, including:

• Mission Statement for the committee - Proposed mission statement was presented during the strategic planning session held earlier in the day
• Council web site (www.michiganwines.com) - Redesign of site was begun in FY07 and will be completed and launched in early 2008
• Amanda Danielson provided an overview of a potential project to be undertaken by the committee, which includes an educational interactive web-based mapping system of Michigan vineyards
• April Wine Month promotional activities and opportunities
• Michigan Wine Industry Annual Meeting sessions
• Michigan Wine Country - Current regional maps will be maintained for 2008, and a more detailed statewide map will be added

ELIGIBILITY TASK FORCE REPORT - Bob Jacobson

Bob reported that the task force was charged with reviewing current eligibility requirements and related issues, which led to an evaluation of the current requirements and proposed changes to those requirements. Proposed motions are as follows:

MOTION: That the Council's Administrative Practices be amended regarding recognizing a licensed winery as a "producer of Michigan wine" to include the requirement that a winery must be licensed as a food establishment by the Food and Dairy Division of MDA.

MOTION: That the Council's Administrative Practices be amended regarding recognizing a licensed winery as a "producer of Michigan wine" to include that, once accepted for listing as a "producer of Michigan wine" by the Council, a winery must maintain their MLCC Small Winemaker or Winemaker License and MDA Food Establishment License in good standing to retain their listing. Their listing may also be revoked if the Council feels that the winery's use of Michigan fruit or production of wine compared to other beverage alcohol changes to the point that the winery no longer fits the spirit of the guidelines, at which point the Council would review the status of a particular winery in question.

MOTION: That the Council's Administrative Practices be amended regarding recognizing a licensed winery as a "producer of Michigan wine" to include that, in the event of a major issue beyond the control of the winery that results in a disaster declaration by the director of the Michigan Department of Agriculture for the grape crop in any particular year, the 51% Michigan fruit rule would not prompt the revoking of a winery's listing.

MOTION: That the Council's Administrative Practices be amended to change the definition of wine to read:

"Wine" is defined as the product made by the normal alcoholic fermentation of the juice of sound, ripe grapes or any other fruit with the usual cellar treatment, and containing not less than 7% and not more than 21% alcohol by volume, including fermented fruit juices other than grapes and mixed wine drinks.

MOTION: AMANDA DANIELSON MOVED THAT ALL MOTIONS REGARDING AMENDING THE COUNCIL'S ADMINISTRATIVE PRACTICES RELATED TO ELIGIBILITY OF A WINERY TO BE RECOGNIZED AS A "PRODUCER OF MICHIGAN WINE" BE APPROVED. STEVE ARBAUGH SECONDED. MOTION CARRIED UNANIMOUSLY.

NEW BUSINESS

Michigan Wine Industry Annual Meeting
Linda Jones reviewed the proposed agenda for the meeting and invited Council members to comment and provide suggestions for additional speakers and/or sessions.

COUNCIL MEMBER REPORTS

Steve Arbaugh - The Michigan Beer and Wine Wholesalers Association has two new staff members; Steve briefly explained the duties of these positions and the impact on the organization.

Liz Berger - Good harvest, but some bird problems; winemaker Mark Johnson is conducting a presentation at the winery on windmills as an alternative energy source.

Dave Miller - Good harvest, with a big crop; biggest wine grape crop they've ever harvested.

Bob Jacobson - Echoed Liz and Dave on the harvest; there will be a few more wineries opening on Leelanau Peninsula in the next year or so; Leelanau Cellars is moving to their new winery facility in January; the winery's new winemaker started just five weeks before harvest, so she was thrown into the chaos leading into harvest.

Julie Wendt - There are currently 483 direct shipper licenses, and they keep coming in; she anticipates they will reach 500 by the end of the year.

Amanda Danielson - Business was up through the fall, driven by wine, general entertainment, and good weather; she participated in a four-day wine cruise on the Tall Ship Manitou with a "45th Parallel" theme, which included some Michigan wines; Amanda and David Creighton are inventorying wine education resources.

Charles Edson - Echo previous comments about the harvest; harvesting their largest crop ever, with great quality.

PUBLIC COMMENT

No public comment.

OTHER BUSINESS

Proposed 2008 meeting dates: January 31 (tentative), May 8, August 7, November 13.

ADJOURNMENT

MOTION: AMANDA DANIELSON MOVED THAT THE MEETING BE ADJOURNED. BOB JACOBSON 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. Michigan Grape and Wine Industry Council Fiscal 2007 Report

B. Michigan Grape and Wine Industry Council Fiscal 2008 Plan

C. Response letter from Council to Brys Estate Vineyard & Winery regarding 2007 Michigan Wine and Spirits Competition