The Michigan Sustainable Winegrape Program Feasibility Study
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The Michigan Sustainable Winegrape Program Feasibility Study August 2015 5 Lakes Energy, LLC 120 N Washington Square, Suite 805 Lansing, MI 48933 5lakesenergy.com About 5 Lakes Energy 5 Lakes Energy is a Michigan-based policy consulting firm offering a range of services focused on clean energy, sustainability and the environment designed to promote the adoption of energy efficiency technologies, renewable energy and sustainable practices in the public and private sectors. Acknowledgments The Michigan Sustainable Winegrape Program-Feasibility Study was funded by a USDA Specialty Crop Block grant awarded to the Michigan Grape and Wine Industry Council (MGWIC). 5 Lakes Energy LLC was retained by the MGWIC to manage the project. The project was directed by a steering committee, and 5 Lakes is grateful for their continued assistance and valuable input. – Linda Jones, MGWIC – Robin Usborne, East of Eden Vineyards – Sherri Goodreau, MGWIC – Jeff Lemon, Lemon Creek Winery – Gordon Wenk, MDARD/MGWIC – Matt Moersch, Round Barn Winery – Michelle Crook, MDARD – Spencer Stegenga, Bowers Harbor Vineyard – Rufus Isaacs, Michigan State University – Adam Satchwell, Shady Lane Cellars – Josh Appleby, MAEAP – Charlie Edson, Bel Lago Winery Contributing Authors – Mike Powers, Keen Technical Solutions – Thomas Brown, Keen Technical Solutions – Jenna Veiga, M.S. University of North Texas, Assistant Manager Verterra Winery The primary author on this report was 5 Lakes’ consultant Cam Brown. His knowledge of viticulture and the wine community in Michigan, as well as his understanding of sustainability, is woven into this document. We thank him for all his hard work. Copyright © 2015, 5 Lakes Energy, LLC. All rights reserved. No part of this publication may be reproduced without permission in writing. 5 Lakes Energy, LLC Michigan Sustainable Winegrape Program: Feasibility Study i Table of Contents Executive Summary .............................................................................................................................................1 Comparative Research ........................................................................................................................................ 5 1. Development .......................................................................................................................................................6 2. Funding ..............................................................................................................................................................6 3. Staff ....................................................................................................................................................................6 4. Structure ............................................................................................................................................................. 7 5. Partnerships .......................................................................................................................................................8 6. Self-Assessment .................................................................................................................................................8 7. Certification .........................................................................................................................................................9 8. Education ......................................................................................................................................................... 11 9. Performance Metrics ......................................................................................................................................... 11 10. MAEAP ............................................................................................................................................................ 12 11. Recommendations .......................................................................................................................................... 12 Survey Results .................................................................................................................................................... 13 1. Key Findings ..................................................................................................................................................... 13 Market Research Literature Review ................................................................................................................. 17 1. Introduction....................................................................................................................................................... 17 2. Consumer Interest ............................................................................................................................................ 17 3. Willingness to Pay Price Premium .....................................................................................................................19 4. Influence on Purchasing ....................................................................................................................................20 5. Consumer Perceptions .....................................................................................................................................20 6. Benefits of a Sustainable Operations System .................................................................................................... 21 Winery Energy Management Implications ....................................................................................................... 23 1. Site Visit ............................................................................................................................................................ 24 2. Energy Use ....................................................................................................................................................... 24 3. Energy Conservation Measures ......................................................................................................................... 25 4. Environmental Implications ................................................................................................................................26 Development Scenarios .................................................................................................................................... 27 1. Funding ............................................................................................................................................................ 27 2. Industry Association ..........................................................................................................................................28 3. MAEAP Expansion ............................................................................................................................................28 4. Low Input Viticulture and Enology (LIVE) Framework.....................................................................................................29 5. Combined Scenarios .........................................................................................................................................29 Glossary of Terms ..............................................................................................................................................30 Appendices ......................................................................................................................................................... 31 5 Lakes Energy, LLC Michigan Sustainable Winegrape Program: Feasibility Study ii The Michigan Sustainable Winegrape Program Feasibility Study 5 Lakes Energy, LLC 120 N Washington Square, Suite 805 Lansing, MI 48933 5lakesenergy.com 5 Lakes Energy, LLC Michigan Sustainable Winegrape Program: Feasibility Study iii Executive Summary Sustainability is often expressed as consideration of people, planet, and profit in regular business practices. The Michigan winegrape industry shines a light on that intersection. Already, Michigan vineyards have made good progress toward environmental sustainability through Michigan Agriculture Environmental Assurance Program (MAEAP) verification, and can build on those efforts to further the sustainability of Michigan winegrapes and Michigan wine. Michigan wineries and winegrape growers are poised to take advantage of a critical time in their industry and accelerate their growth through an industry-led effort to organize, fund more research, and anticipate changes in consumer and regulatory demand. A sustainability program will meet demand, protect the earth, and reduce costs. 1. A Michigan sustainability program will help meet demand from consumers, retailers, and restaurants for transparent sustainability standards. The Market Research Literature Review [page 17} demonstrates that well educated, younger, and often frequent buyers are influenced by the sustainability credentials of a wine; typically these consumers are also willing to pay a premium for sustainably certified wine. A sustainability program will build the Michigan wine brand and help wineries communicate their sustainability efforts to consumers as well as respond to and anticipate oversight from regulatory bodies like the Michigan Department of Environmental Quality (MDEQ). 2. The program will clearly demonstrate how the industry works to reduce its environmental footprint. Wineries and growers in Michigan are good stewards