Traverse City Record-Eagle

Grand Traverse County

December 19, 2009

Proposal: Wine could flow at farm markets

BY LINDSAY VANHULLE

TRAVERSE CITY -- Don and Judy MacLean like the idea of selling wine at a farmers market.

The region already has strong customer demand for local wines, Judy MacLean said, and the markets already sell goods, such as bread and cheese, that pair well with the beverage.

Not only that, but "it could bring more people into the local farmers market," said Don MacLean, market master in Elk Rapids. "It's just another product that could be a draw."

A bill by state Rep. Goeff Hansen, R-Hart, soon could allow wineries to sell their products among the flowers, eggs, tomatoes and other produce available at local farm markets across Michigan.

Under Hansen's legislation, the Liquor Control Commission would issue permits for vendors selling wine and offering tastings for $25 a day, up to 20 days a year.

The bill is pending in the House Regulatory Reform Committee.

Wine could be sold at the Sara Hardy Downtown Farmers Market in Traverse City under such a proposal if the growers are the vendors, said Rob Bacigalupi, acting executive director of the city's Downtown Development Authority.

The beverage would add variety to the market, he said, but organizers would have to balance booth space with traditional farmers' goods.

"Obviously, it is a very large agricultural product in our region, so it makes sense that if it were permitted it would be sold," Bacigalupi said. "Any new product that still fits within the rules would be a good thing."

Emily Beutel is a communications specialist for East Lansing-based Michigan Food and Farming Systems, a nonprofit agricultural organization. She said the legislation would help wineries increase brand recognition and build a loyal customer base.

"Farmers markets really exist to connect consumers with fresh local food and the farmers who grew and produced it, and to strengthen that relationship," she said. "They also help farmers find new markets to sell their products and even add value to them, so you'd expect to see that with wineries, as well."

Winemakers want such an opportunity. Ralph Stabile, owner of Mackinaw Trail Winery in Manistique, said it would encourage area residents to experience locally produced wines.

"Any venue that wineries can use to promote their products helps build foundations for a long-term, profitable wine industry," Stabile said.

Wineries bring at least $800 million yearly to the state economy, said Don Koivisto, director of the Department of Agriculture.

"Overall wine sales were flat in 2008, but sale of Michigan wines increased 5 percent, and we also enjoyed 10-percent growth in each of the previous five years," Koivisto said.

There are 71 wineries in Michigan, seven more than 2008, and the number is going up every year, according to the agriculture department.

Meanwhile, farmers markets have rapidly matured all around the state. The agriculture department counts more than 200.

Becky Goodman, the Petoskey Regional Chamber of Commerce downtown director, said her farmers market reached capacity in just four years.

"I hear of communities around the country opening new markets every day," Goodman said. "I receive regular inquiries from groups wanting to start new markets."

Wine tastings are legal at farmers markets in California, Oregon, Louisiana, Kentucky, Pennsylvania, New York, Ohio, Illinois, Iowa, Vermont and Indiana.

There's disagreement whether the proposed fee is reasonable. Brian Smith, St. Joseph Today's events coordinator, said it's too high.

"If it starts at $25, what will it be in three years, $45?" Smith said. "Government fees always increase, don't they? Just like taxes. Don't forget that they have to pay rent to the market, employees and inventory."

Ed Gerten, owner of Pentamere Winery in Tecumseh, said it's difficult to tell if wineries could generate enough sales from farmers markets.

"I'm not so sure farmers markets are the way for a small winery to get their product out to the public," he said. "If the bill were to pass, sure, I think we'd give it a try, though costs and labor requirements could make any gain minimal -- making it more of a marketing tool than an income generator."

Hyonhee Shin of Capital News Service at Michigan State University contributed to this report.

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