ADOPTION OF AGENDA

MOTION: BOB JACOBSON MOVED THAT THE COUNCIL ADOPT THE AGENDA AS PRESENTED. HEATHER PRICE SECONDED. MOTION CARRIED UNANIMOUSLY.

MINUTES OF THE JANUARY 24, 2008 MEETING

THE CHAIR ASKED FOR ANY REVISIONS TO THE MINUTES OF THE JANUARY 24, 2008 MEETING. BOB JACOBSON MOVED THAT THE COUNCIL APPROVE THE MINUTES AS PRESENTED. STEVE ARBAUGH SECONDED. MOTION CARRIED UNANIMOUSLY.

STAFF REPORTS - Linda Jones

Annual Plan of Work - Linda encouraged Council members to review the Annual Plan. The Council recently completed a Strategic Planning activity; a summary is included in the Annual Plan.

Revised Administrative Practices - Revisions were made to the Council's Administrative Practices. Revised versions were distributed to members prior to the meeting (Attachment A).

MOTION: STEVE ARBAUGH MOVED THAT THE COUNCIL ADOPT THE REVISIONS TO THE ADMINISTRATIVE PRACTICES. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

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

Bill read from a prepared report and submitted that report to the Council for inclusion in the minutes (Attachment C). He commented that a subcommittee has been formed to review and update the research priorities of the Council prior to sending out the Request for Research Grant Proposals. He then introduced Paul Jenkins, who is the new Enology Education and Outreach Specialist with Michigan State University.

Paul briefly summarized his background, which includes work with small fruit, and grape growers, in particular. He stated that his purpose is to communicate with the industry, identifying its needs and developing programs to meet those needs.

PROMOTION AND CONSUMER EDUCATION COMMITTEE REPORT - Heather Price, Chair

Heather listed the members of the committee. She then reported that the committee held an audioconference meeting May 2, 2008, where several promotional items were discussed, including:

• Promotion Committee Mission Statement: "Develop and implement plans for promotion, and consumer and trade education activities to support the growth of the Michigan wine industry"
• April Wine Month feedback and potential conflict with April as National Alcohol Awareness Month (Wine Month was formerly in October; 2008 was third year in April, Committee would like to see April continue as Michigan Wine Month).
• Educational Materials for Wine Professionals
• License to Steal Wine Marketing Conference
• Michigan Wine Country
• Website Redesign
• Upcoming Events

ELIGIBILITY REVIEW - CASCADE WINERY
Linda Jones stated that she received an application from Cascade 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 Cascade Winery be approved. She invited Bob Bonga, from Cascade Winery, to comment. Bob stated that they have been in business for 5-1/2 years. They are moving their winery to a new, larger facility, and they are adding more wine made from Michigan fruit. Demand is increasing, and Cascade continues to expand their inventory of Michigan products.

MOTION: STEVE ARBAUGH MOVED THAT THE COUNCIL ACCEPT THE RECOMMENDATION AND APPROVE CASCADE WINERY AS A "PRODUCER OF MICHIGAN WINE" FOR PROMOTIONAL PURPOSES OF THE COUNCIL. BOB JACOBSON SECONDED. MOTION CARRIED UNANIMOUSLY.

NEW BUSINESS

Winery-Friendly State / Regulatory Issues List
Linda Jones explained that a comment she made earlier this year that "Michigan is not a winery-friendly state" was taken out of context by a member of the media. Chair Koivisto asked Julie Wendt to communicate to the Liquor Control Commissioners that MDA values the partnership between MLCC and the Council. Julie responded that the Commissioners understand that, but she will relay the message.

Linda offered the Council an explanation of the full meaning behind her statement. That explanation included a list of regulatory and policy issues that impact the Michigan wine industry. She invited Council members to provide suggestions of items on the list that MDA and/or the Council may need to act on and how.

Bob Jacobson stated that WineMichigan has discussed many of the topics on the list and suggested that the Council work with WineMichigan to effect some change. He stated that it is important to have a coordinated effort with a common message to benefit the industry. Bob then briefly commented on some issues WineMichigan has discussed. He will bring the list prepared by Linda to the next WineMichigan Board meeting.

Annual Meeting 2009
Linda Jones has researched other locations for the meeting, and she recommended that we remain at Crystal Mountain Resort, in Thompsonville, for another year. Proposed dates are February 25-27, or March 4-6, 2009. Council members agreed to remain at Crystal Mountain and instructed Linda to research possible conflicts for the dates and make a choice.

Budget Planning for FY 2009
Linda reported that every three years, the Council receives a little extra funding from liquor license fee renewals, and that 2009 will be 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:

• "History of the Michigan Wine Industry" Publication
• "Fork in the Road" PBS Program

COUNCIL MEMBER REPORTS

Charlie Edson - Buds are swelling, finishing pruning. Visitors are down from previous years, but sales are even. Sales through distributors are up, which indicates that people may not be traveling, but they're still interested in Michigan wines.

Heather Price - Finishing pruning. Vignoles might have some frost damage. Recent Pioneer Trail event was close to selling out.

Dan Matthies
Northwest Wine Summit - Wineries from Old Mission Peninsula and Leelanau Peninsula organized an event for media, sommeliers, restaurants and related industries. It was one of the greatest successes they've had. Received positive response by sommeliers, suggested the wineries do similar events in Detroit and Grand Rapids. The best way to increase Michigan wine presence is on-premise.
Chateau Fontaine - Pruned, tied, bottling 2007s. Woodland White won a Double Gold in Tasters Guild Competition. There's a new product used on vineyards - Trigger - it's sprayed on grapes to produce more fruit than leaves. He's trying it this year on a limited number of vines. Dan is also a developer of winery properties. There is increased interest in people wanting to be involved in the industry, including interest from out-of-state. Recent $3 million investment in a new winery tasting room in Northern Michigan. Well-known winemaker Charles Shaw has purchased property southwest of Grand Rapids and in Benzie County.

Julie Wendt - 480 of 500 Direct Ship Permits have been renewed. $9.7 million was received in wine excise taxes; $17,000 of that from Direct Shippers.

Doug Buhler - National search for new Chair of Horticulture Dept. at MSU. Some renewed discussion of faculty position in enology or fermentation science (bio-fuels). Possible Master's program in fermentation science. Partnership with Michigan Brewing Company in Williamston for biodiesel distillation.

Melinda Remer - Pure Michigan summer season advertising campaign has begun. Additional $60 million allocated by Legislature will allow expansion into three key markets (Dayton, Columbus, St. Louis). In 2009, will focus on national television campaign, hitting specific programs, cable shows and markets that match our demographics. New partnership with Lake Michigan Shore wineries and Harbor Country.

Bob Jacobson - Slightly up in sales, slightly down in visitors. Too soon to judge season. Gas cost may be impacting travel to tasting rooms.

Steve Arbaugh - Linda Jones addressed the Michigan Beer & Wine Wholesalers Executive Committee. One goal of the association is to improve communication between wineries and distributors. For April Wine Month, Michigan wines were featured at an event with Bayside Beverages' best customers. There is an embracing of all things Michigan including Michigan Wine Month. Recently held a beer pairing event with legislators and will do a Michigan wine and food pairing dinner with legislators in the fall. Article in "Today's Wholesaler" promoting Michigan Wine Month.

Dave Anthony - Introduced himself as a small grower in Delta County. He has attended meetings sponsored by the Minnesota Grape Growers Association. His region gets travelers from Wisconsin, Illinois, and the Twin Cities. There is a growing interest in vineyards in the area.

PUBLIC COMMENT

Bill Harrison expressed thanks to Council staff. He also welcomes ideas from the Council for the Research Committee.

Chair Koivisto commented that Dave Anthony also works with the Hannahville Indian Community on economic development ventures. The Chair commented that tribes can be a great resource, with matching monies available for development opportunities.

OTHER BUSINESS

2008 meeting dates: August 7, November 13.

ADJOURNMENT

MOTION: HEATHER PRICE MOVED THAT THE MEETING BE ADJOURNED. CHARLIE EDSON 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 Revised Administrative Practices

B. 2008 Annual Wine Industry Meeting Feedback

C. Research and Education Advisory Committee Report