INDUSTRY DEVELOPMENT BOARD 700 KIPLING ST, STE 4000, LAKEWOOD, COLORADO 80215 720.304.3406 / FAX: 303.239.4125 WWW.COLORADOWINE.COM

CO Wine Industry Development Board Meeting 31 March 2014 CO Department of Agriculture, Lakewood, CO

Monday, March 31

Members Attending in Person: Jay Christianson, Kenn Dunn, Max Ariza, Doug Kingman, Taylor Courey

Guests:

Attending via Phone: Neil Jaquet, Michelle Cleveland, Dr. Steve Wallner

Staff attending in Person: Kyle Schlachter, Doug Caskey, Dr. Steve Menke, Dr. Horst Caspari, Tom Lipetzky

Opening of Meeting 1. Meeting called to order by Jay Christianson at 10:04 AM

Review of Minutes 2. Kenn Dunn moved to approve the minutes from January 13, 2014. a. Neil Jaquet seconded. b. The motioned passed unanimously.

Treasurer’s Report 3. Neil Jaquet presented the treasurer’s report through 28 February 2013. a. Revenue looks on track. b. Total expenditures are around 49% of budget about 7 months through the year. c. Financial situation looks good.

Marketing Committee Report 4. Doug Kingman presented the Marketing Committee Report. a. Status of RFP i. Primary Goal is to increase the awareness and sales of produced by Colorado licensed wineries. ii. Scope 1. Up to $200,000 budget 2. Strategic Plan 3. Year-round statewide promotional campaign 4. Marketing and advertising 5. Public relations 6. Communications with other entities 7. Progress reporting to full Board iii. Consumer survey 1. 4 days 2. 1645 qualified respondents a. 76% female respondents b. 21+ yrs of age 3. Baseline data to provide RFP applicants iv. Vendor selection process 1. Primary Team a. Doug Caskey – Project Manager b. Tom Lipetzky – Director of CDA Markets Division c. Wendy White – Director of CO Proud d. Ben Parsons – Wine Industry Representative e. Michelle Cleveland – Wine Industry Representative 2. Advisors a. Doug Kingman – Wine Industry Representative b. Taylor Courey – Wine distribution Representative c. Brett Neal – Wine Industry Representative 3. Doug Kingman made a motioned that the committee have the power to make a decision on the vendor selection process without full Board approval. a. Kenn Dunn seconded. b. The motion was approved unanimously. b. Website i. Current contract with Ehrenwerks ends June 30. ii. State Google team working on new website

Quality Committee Report 5. Colorado Quality Alliance Proposal a. Creation of a new program to provide member wineries a marketing logo or statement that will distinguish their wines as being a high quality wine. b. Fees paid by applying wineries. c. Membership gained by one of two tracks. i. Track 1 (2-yr track) 1. 80% wines submitted to CO sensory and fault panel a. 90% of submitted wines scoring above 70% – meaning commercial viability b. Maintained for two calendar years ii. Track 2 (1-yr track) 1. 100% submitted to CO sensory and fault panel 2. 100% scoring above 70% – meaning commercial viability 3. Must maintain membership in Quality Initiative Program 4. Have degreed enologist or receive formal sensory training on staff 5. Audit from state enologist d. Tom Lipetzky mentioned the Seal of Quality provision that is in the State statutes and could be overseen by the CO Department of Agriculture as a possible avenue to persue.

CWIDB Meeting Minutes, 31 March 2014 page 2 of 6 e. Doug Kingman made a motion to adopt the Colorado Quality Alliance program as outlined. i. Neil Jacquet seconded. ii. The motion passed with Kenn Dunn opposing. f. Doug Kingman made a motion to create a committee to set up this program. i. Taylor Courey seconded. ii. The motion passed unanimously with Kenn Dunn abstaining. Michelle Cleveland, Brett Neal, Jay Christianson and Dr. Steve Menke volunteered to serve on the committee.

Research Committee Update 6. Doug Caskey presented the results from the research survey. a. Wine industry received a survey about the direction of research b. 83 respondents i. 56% growers ii. 42% winery iii. 15% consumers iv. 19% amateur winemaker or grower c. Top viticultural topics was suitability of varieties for CO climate d. Greatest current research benefit – Responding to cold damage and variety selection e. Greatest enological research benefit – quality control, winey practices, quality assessment f. More research – microbial concerns and varietal profile studies unique to CO

7. Kenn Dunn presented an update from the Research Committee a. Results from research survey mirrored CSU viticultural research initiatives b. Research committee recommends that CWIDB use CSU research proposal as a basis of the CWIDB research document proposed at the previous Board meeting. c. Neil Jaquet made a motion to approve the recommendation of the committee. i. Brett Neal seconded. ii. Dr. Horst Caspari explained the draft outline of the viticulture program. iii. The motion passed unanimously.

Colorado State University update 8. Dr. Steve Wallner provided a report on the CSU viticulture/enology program review a. The Colorado Agricultural Experiment Station has initiated a review of their viticulture and enology research program. The review should be completed within six months. There are three components that will encompass the review. i. Viticulture/Enology research program review documentation development 1. CSU program history and timeline 2. Colorado wine industry history and timeline 3. Industry assessment of CSU programs 4. Summary of CSU/CDA/CAVE annual investments 5. Overview of present CSU program configuration 6. CSU program impact 7. Overview of other states’ viticulture and enology programs ii. External program review committee

CWIDB Meeting Minutes, 31 March 2014 page 3 of 6 iii. Overall program review analysis and CSU suggested responses to the review committee’s recommendations and industry input. Draft action plan.

9. Kenn Dunn presented an update from the research committee. a. Committee recommends $10,000 be held as a placeholder for Colorado participation in either a Specialty Crop Research Initiative project (multi-state, multi-national) or a Specialty Crop Block Grant proposal (through CDA) to cover viticulture and/or enology research as it comes up. b. Kenn Dunn made a motion to accept the recommendation. i. Brett Neal seconded. ii. The motion passed unanimously.

10. Kenn Dunn reported on a CAVE/CWIDB meeting with Jeff Steiner, Ryan Abbott and Greg Litus from CSU. a. Informal meeting in Grand Junction on February 4. b. CSU mentioned that they would like to be a part of industry.

11. Dr. Steve Menke presented the enology program review and annual report a. General work of description of work i. To pay for the salary and benefits of a research enologist position at CSU for FY 2013-2014 ii. $25,000 plus 26% indirect costs, totaling $31,500 b. Deliverables i. Position based out of CSU Western Colorado Research Station at Orchard Mesa ii. Full-time, tenure-track position under the hiring authority of CSU iii. Responsibilities 1. Primary function is to act as information source for winemaking issues for licensed CO wineries. a. Contribute disciplinary expertise b. Discuss needs and identifying issues common to wineries throughout the state c. Spend significant time visiting wineries d. Deliver technical assistance and workshops 2. Secondary function is to conduct research a. Generate research-based solutions to winemaking problems associated with CO b. Work with state viticulturist c. Micro vinification for research and teaching d. Participate in regional and national research programs e. Seek out and apply for appropriate grant funds 3. Tertiary function is to teach within the viticulture and enology concentration c. Performance of Statement of Work i. Continue of three-pronged stategy for development of the CO wine industry 1. Find winegrape cultivars suitable for CO. 2. Improve wine quality through quality assurance methods 3. Open new and sustainable markets for CO wine ii. Continue engagement via consultations and workshops

CWIDB Meeting Minutes, 31 March 2014 page 4 of 6 1. Fell short of projected (36) consultation numbers with only 30 visits. 2. Conducted six industry workshops. iii. Operate Ram’s Point Winery 1. Two interns and one staff member 2. Sold 70 cases of wine 3. Promotional tool at alumni events iv. Attempt to measure impact of CSU enology program 1. Sent survey to 105 Colorado licensed wineries 2. 95% aware of program 3. 80% reported changes in behavior from contact with enology program. v. Using collaborative blending teams, composed of industry and RPW employees, created blends from wines of V. vinifera and hybrid , and have them sold to consumers. 1. 4 blends created 2. $16.99 price 3. Awareness and sales are still limited vi. Continue work on chemical volatile aroma profile chemicals in wines from CO-grown grapes using GC/MS. vii. Teach Hort 227 viii. Develop new course for students in Fermentation Sciences major, Hospitality major, new Beverage Business Institute. ix. Present several lectures and/or publish papers.

Staff Report 12. Doug Caskey presented Legislative Report a. HB 14-1346 b. Authorize out of state licensed manufacturers of beer to bring their own hard cider(legally a wine) into Colorado without going through a Colorado-licensed importer. c. Kenn Dunn made a motion for the CWIDB oppose HB 14-1346. i. Brett Neal seconded. ii. The motion passed unanimously.

13. Kyle Schlachter presented LED workgroup meeting. a. These were the issues that the LED group decided to go forward with finding things to correct: i. Predictability - of activities and actions (uniformity and consistency) ii. Progressive Discipline or Sanctions - more options than just suspension iii. Education - training of both licensees and LED iv. Collaborative work environment - removing the fear factor v. Public Safety b. Each issue raised in those silos should also address: i. the Regulatory function, ii. the Licensing function, iii. the Compliance function and iv. the Enforcement function of LED.

CWIDB Meeting Minutes, 31 March 2014 page 5 of 6 14. Doug Caskey wine specialist project is on hold due to Wayne Belding being in a car accident.

15. Kyle Schlachter presented a social media update a. Everyvine i. Everyvine is a simple tool to map and/or wineries using GIS geo- referenced photography ii. Suggested that producers and growers use Everyvine. b. Wine Enthusiast i. The CWIDB was facilitating a coordinated effort to increase national awareness and external recognition of Colorado wine by asking wineries to submit samples to the Wine Spectator for review. ii. Shifted to Wine Enthusiast after Wine Spectator said it would no longer review Colorado wines iii. Wine reviews already appearing in April issue

16. Doug Caskey Governor’s Cup Warren Winiarski a. Warren Winiarski, who made wine at Ivancie Cellars in the 1960s will be in i. Seminar on Friday April, 4, 2014 ii. Judge at the Governor’s Cup Wine Competition

17. Doug Caskey will attend the WineAmerica Wine and Grape Policy Conference in Washington, D.C. in May a. Have taken Board members to conference past b. Any interested members should inquire

18. Doug Caskey expiring member terms: a. Four expiring positions with one eligible for reappointment i. Taylor Courey (eligible for reappointment), ii. Janet Johnson (wholesaler), iii. Lisa Lambertus (wholesaler) iv. Kenn Dunn (at-large winery) b. Need three new members

Next Meeting Dates 19. Retreat a. Set for June 9-10. b. Location to be decided.

Adjournment 20. Brett Neal motioned to adjourn. a. Taylor Courey seconded. b. The meeting was adjourned.

CWIDB Meeting Minutes, 31 March 2014 page 6 of 6