MINUTES Michigan Grape and Wine Industry Council November 30, 2017 Lemon Creek Winery, Berrien Springs, MI

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1 MINUTES Michigan Grape and Wine Industry Council November 30, 2017 Lemon Creek Winery, Berrien Springs, MI Council Members Present: Gordon Wenk, Michigan Department of Agriculture & Rural Development Richard Rinvelt, Public Member Michael Brenton, Public Member Vance Baird, Michigan State University Deb Burgdorf, Burgdorf s Winery Paul Howland, Michigan Economic Development Corporation Rick Lopus, Great Lakes Wine & Spirits Steve Massie, Meijer Corp. Matt Moersch, Round Barn Winery Dustin Stable, Mackinaw Trail Winery via conference phone Others Present Sherri Goodreau, Michigan Grape & Wine Industry Council Karel Bush, Michigan Grape & Wine Industry Council Jenelle Jagmin, Michigan Grape & Wine Industry Council Council Members Absent Sara Weber, Michigan Liquor Control Commission Taylor Simpson, Good Harbor Vineyards Welcome and Introductions The meeting was called to order by Council Chair Gordon Wenk at 9:35 a.m. Gordon thanked Jeff Lemon for hosting the Council today. Agenda for the November 30, 2017 Meeting MOTION: RICHARD RINVELT MOVED THE COUNCIL APPROVE THE AGENDA FOR THE NOVEMBER 30, 2017 MEETING. RICK LOPUS SECONDED. MOTION CARRIED UNANIMOUSLY. Minutes of the July 27, 2017 Meeting MOTION: MOTION: RICK LOPUS MOVED THE COUNCIL APPROVE THE MINUTES OF THE JULY 27, 2017 MEETING. MICHAEL BRENTON SECONDED. MOTION CARRIED UNANIMOUSLY. Introductions and Council Member Comments Rick Lopus - Great Lakes purchased another distributor that added Round Barn Winery wines. Deb Burgdorf - Sales are up 20% in the tasting room. Dave has been traveling to meet with retailers to put Burgdorf s product on their shelves. He is meeting with some resistance. Paul Howland - MEDC has a website, michigan.org, for tourism businesses to post events. Please contact us to use it. Looking forward to hearing about the Promotion Committee meeting. 1

2 Vance Baird - Ag Innovation Day at SWMREC, June 28, Trying to put in tunnels to increase growing season. Steve Massie - Wine business is above beer sales but below spirits. Spirits are growing. Adult beverage is our priority along with perishable foods. Thanksgiving sales were good, and we are expecting good sales at Christmas as well. People like to talk dry wines, but they are still buying sweet. Meijer is sponsoring the 2018 Michigan Grape & Wine Conference for $10,000. Rosé is a summer wine but it s doing well even now. Rosé All Day is the trend. Michael Brenton - We are drinking a lot of rosés. Tailgating parties are a great place to introduce Michigan rosé wines to our friends. We are also providing clients with Michigan wines as gifts. I recently became a minority investor in Blustone Winery. Richard Rinvelt - Bonnie and I traveled to Washington and sampled wines, including rosés. We also went to Windsor and tried wines there, though we didn t like them as well as the wines from Niagara on the Lakes. Matt Moersch - Round Barn had a nice harvest. Some reds and whites will be premium. October sales were soft because of rain. We have teamed up with Great Lakes Wine & Spirits for distributing. We had our first harvest at Tabor Hill. Harvest went smoothly and quick. My brother Chris decided to leave the company to pursue other endeavors. Matt is now CEO of Entente Spirits. Dustin Stabile (via phone) - Looking likes it the start of winter up here. Things are going well at Mackinaw Trail Winery, wines being bottled. Spare Key Winery is in Tip of the Mitt region and is on the agenda for approval by Council today. Gordon Wenk - The Agriculture Commission went on a craft beverage educational trip to Northern Michigan. They visited Black Star Farms to see a demonstration of the flash détente system installed there, Mari Vineyards to see vineyards growing under high tunnels, MI Local Hops, and Grand Traverse Distillery. Legislation for the Craft Beverage Council has been put on hold on the House floor. It is possible the Senate version of the bill, SB 439, will go to the Senate Regulatory Reform Committee next week. The bill has 50% of the Council s funding going toward research for fruit, hops, and barley. MDARD has communicated to the Committee that there should be a grower representative on the Council. There is also language that would allow Governor-appointed representatives to designate someone else to serve in their place. MDARD disagrees with this; when the Governor appoints a person, he expects that person to serve. The bill does not have MSU, MLCC or MEDC represented on the Council. The legislation states that representatives from those organizations shall be invited to a Council meeting at least once per year. Senator Geoff Hansen introduced the bill. His distribt is north of Muskegon. Public Comment on Agenda Items There was no public comment on agenda items. Public attendees introduced themselves. Jeff Lemon, Lemon Creek Winery reported a good growing year. Started out wet, then dry, then rain. Heat in October finished things off. The Research Committee met in Grand Rapids on Tuesday. Lots of great new proposals, and great discussion. Consumer and Trade Promotion and Education Committee Report Jenelle Jagmin reported for Taylor Simpson: 2

3 For 2018, the Promotion Committee is looking to rebrand and relocate the Showcase event. Council staff is looking at the Eastern Market as a possibility. The Economic Impact Study and Final Report are complete. Total impact of the grape and wine industry is $5.4 billion annually. If you would like more information, you can contact Jenelle. John Dunham from John Dunham and Associates will be a session speaker at the 2018 Michigan Grape & Wine Conference discussing the study. Michigan.org changed their website this year. We did not see a huge return on our investment in a Chicago campaign, though the partnership is still valuable. Council staff is currently working on the 2018 Michigan Wine Country magazine and the Michigan Grape & Wine Conference. Viticulture and Enology Research and Education Committee Report Dustin Stabile reported (via phone): The Research Committee met on Tuesday, November 28, in Grand Rapids to review the research proposals for 2018, including discussion with the researchers about their proposals. This was a second call for proposals as only three proposals were received in the first round. Total amount of $135,393 is recommended by the Committee for Council approval (Attachment A). Sherri has the full proposals if there are any questions. MOTION: MATT MOERSCH MOVED THAT THE COUNCIL APPROVE THE FUNDING RECOMMENDATIONS MADE BY THE RESEARCH AND EDUCATION ADVISORY COMMITTEE FOR THE 2018 FISCAL YEAR FOR THE AMOUNT OF $135,393. DEB BURGDORF SECONDED. A VOTE WAS TAKEN FOR APPROVAL OF FUNDING WITH 7 AYES, 1 NAY AND 1 ABSTAIN. MOTION CARRIED. Michigan Wine Collaborative and GLSWA Report Matt Moersch reported: The Collaborative was able to secure a Specialty Crop Block Grant which will be used to fund a staff person. Emily Dockery has been hired as the Project Director. Her duties will include administrative work and building membership. An annual meeting for the collaborative will be held at conference. Sherri has been helping for the Collaborative for the past year with processing the membership packets, which include a complimentary Vintage Michigan membership. The Collaborative is a 501(c)(3) non-profit association. The GLSWA (Great Lakes Sustainable Wine Alliance) is a subset of the Collaborative and currently has 18 or 20 members. One of the primary goals of the GLSWA is to build a Michigan version of LIVE (California sustainability), creating good stewardship of the land and water in Michigan. The association would like to get a brand for labels for wineries that are members of the association. MSU is working on a pesticide review project, which just received partial funding. The purpose is to evaluate chemicals used in vineyards and how they impact the environment. The chemicals must be EPA-approved to begin with, but we can use better practices to be in line with sustainable practices. We want to make a good impact on our state for sustainability. A certification process will help with that. We want to market that Michigan wineries are good stewards of the land. 3

4 Eligibility Review Karel reported there are eight wineries seeking eligibility. Spare Key Winery, Red Top Winery, Detroit Vineyards, Glass Creek Winery, Sabrosa Sangria, Owl Wineries, Moonrise Winery, Chateau Aeronautique. They meet the eligibility requirements set forth by the Council. Discussion took place regarding eligibility issues. MOTION: DEB BURGDORF MOVED THAT THE COUNCIL APPROVE SPARE KEY WINERY AS A PRODUCER OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. RICHARD RINVELT SECONDED. MOTION CARRIED UNANIMOUSLY. MOTION: RICK LOPUS MOVED THAT THE COUNCIL APPROVE RED TOP WINERY AS A PRODUCER OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. DEB BURGDORF SECONDED. MOTION CARRIED UNANIMOUSLY. MOTION: RICK LOPUS MOVED THAT THE COUNCIL APPROVE DETROIT VINEYARDS AS A PRODUCER OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. RICHARD RINVELT SECONDED. MOTION CARRIED UNANIMOUSLY. MOTION: PAUL HOWLAND MOVED THAT THE COUNCIL APPROVE GLASS CREEK WINERY AS A PRODUCER OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. MICHAEL BRENTON SECONDED. MOTION CARRIED UNANIMOUSLY. Discussion was brought to the table about Sabrosa Sangria. It was verified that they meet the eligibility requirements set forth by the Council. MOTION: MATT MOERSCH MOVED THAT THE COUNCIL APPROVE SABROSA SANGRIA AS A PRODUCER OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. RICHARD RINVELT SECONDED. MOTION CARRIED UNANIMOUSLY. MOTION: STEVE MOVED TO APPROVE OWL WINERIES, MOONRISE WINERY, AND CHATEAU AERONAUTIQUE AS PRODUCERS OF MICHIGAN WINE FOR PROMOTIONAL PURPOSES OF THE COUNCIL. MICHAEL BRENTON SECONDED. MOTION CARRIED UNANIMOUSLY. Modern Craft Winery in Au Gres has not submitted their eligibility form at this time. To date the Council has approved 139 wineries The meeting broke for lunch at 11:50 a.m. The meeting reconvened at 12:54 p.m. Staff Reports Karel Bush reported: Chateau Lake Charlevoix - the Council conditionally approved Chateau Lake Charlevoix pending the issuance of their MDARD Food Establishment License. The inspector went to the winery, cited some items that need to be changed, and received no response when following up with them. Jenelle has also contacted them, with no response. Karel plans to also attempt to reach them. o Council members advised that Council staff and MDARD have done their part. It is now on Chateau Lake Charlevoix to contact Jenelle or Karel to notify them when the MDARD license is received. 4

5 Lake Michigan College - there were previous concerns about the grant dollars LMC received from the Council. Karel and Gordon met with Michael Moyer for a site visit. The College had issues receiving the equipment they ordered but were getting the work done. They are keeping good records. The new equipment arrived to be used for this year s harvest, so they are in compliance with the grant. Wine America Conference - Karel and Gordon traveled to Napa, California to attend the WineAmerica Fall Retreat. Council cannot be a member of WineAmerica as it is a lobbying organization, but Karel is a member of their State and Regional Associations Advisory Committee. Karel and Gordon participated in a solidarity tour organized by WineAmerica and visited wineries that were impacted by the fires Michigan Grape & Wine Conference is February 28-March 2 at the Radisson Plaza Hotel in Kalamazoo. MiCAST will be Wednesday/Thursday. Sensory session is Thursday. Thursday night will be a Closing Celebration with beer and hard cider made by Michigan wineries. Friday morning bus tour to Lawton Ridge, Cody Kresta, St Julian. Council meeting from 8-10:00 am. Bus tour begins at 10:30. Sherri will collect Council member registrations. Karel requested approval for future Conference locations: March 4-8, 2019 Grand Traverse Resort in Acme February 24-28, 2020 Radisson Plaza Hotel in Kalamazoo March 1-5, 2021 Grand Traverse Resort in Acme MOTION: RICK LOPUS MOVED THAT THE COUNCIL ACCEPT THE ABOVE LOCATIONS AND DATES FOR THE MICHIGAN GRAPE & WINE CONFERENCES. PAUL HOWLAND SECONDED. MOTION CARRIED UNANIMOUSLY. Karel distributed the current Grape & Wine Program Dashboard for Council review (Attachment B) Financial update Staff is working with the State of Michigan s new finance system and currently are not able to access information to provide financial reports. We re optimistic that we ll be able to provide a budget update at the February meeting. Karel distributed the FY17 Annual Report and FY18 Annual Plan (Attachment C). Karel reviewed the budget as approved in July. MLCC transferred more revenue into the Council s account than we expected more than $1 million. We suspect the Wholesaler License fees were included in the funds transfer in error. We have requested a breakdown from MLCC to identify all license fees transferred. New Business Michael Brenton inquired about the status of the Wine Camp. Karel responded that staff is looking at the possibility of doing FAM Tours instead. Wine camps are regional events and expensive, so some research is still needed. Rick Lopus suggested an event that is a friendly competition between New York and Michigan the Finger vs the Mitten. Matt suggested partnering with AG Expo for future conferences. Karel will consider it. NRCS is doing a seminar this year with grapes and looking for a speaker. It is scheduled for July at Tabor Hill Winery. Public Comment There was no public comment. 5

6 Michael Brenton offered to host the May 2018 meeting at Blustone Winery on Leelanau Peninsula. Matt Moersch will host the November 2018 meeting at Tabor Hill Winery in Buchanan. The next meeting of the Council will take place on March 2 during the Grape & Wine Conference at the Radisson Plaza Hotel in Kalamazoo. MOTION: MATT MOERSCH MOVED THE COUNCIL MEETING BE ADJOURNED. RICHARD RINVELT SECONDED. MOTION CARRIED UNANIMOUSLY. The meeting adjourned at 2:00 p.m. Attachments: A) Recommended Research Grants for FY18 B) Dashboard C) FY 2017 Annual Report and 2018 Annual Plan 6