OREGON WINE BOARD
MAY 23, 2005
Attendees: Earl Jones (Chair), Laura Lotspeich, David Adelsheim (Chair Emeritus),
Kevin Chambers (Vice Chair), Harry Peterson-Nedry, John Weisinger. Staff: Ted
Farthing (Executive Director), Katie Stoll, Stephany Boettner, Tara Anderson.
Call to Order
Jones called the meeting to order at 9:00 a.m.
Lotspeich moved,Weisinger seconded to accept the minutes as presented from March
2005. The motion carried unanimously.
Action Item Checklist Review
Jones reported Farthing’s review would take place today. Lotspeich noted that there is
policy stated in the P&P that need to be followed. If it will not be followed, needs to be
suspended or amended.
Other action items are later in the agenda.
New Board Director Appointment
Notice to industry will go out May 24. Robin Pfeiffer will chair Recommendation
Committee. Discussion of how to get the Willamette Valley represented on the
Recommendation Committee. Board will request 5-10 people from the N. Willamette
to serve on the Recommendation Committee, anticipating that there will be 4 who
agree to serve. Discussion of other three board seats that will come up for renewal at
the end of 2005.
P-N moved, Weisinger seconded that with concurrence of governor’s office, that a
single process for board renewal and position replacement be done at one time,
New Treasurer Appointment
Staff noted that the Board needs to have filled the open Board Director seat before
officially naming a Treasurer, but can have an Interim Treasurer. Peterson-Nedry
suggested that the board ask McClellan to be the interim treasurer.
Farthing introduced new Senior Communications Manager Stephany Boettner and new
Operations Assistant Tara Anderson.
Income is tracking low compared to budget, but higher than worst-case scenario
presented in December ’04, and expenses have been cut to compensate. Thanks to an
unexpected additional $10,000 from the OLCC this month and cost-cutting measures, the
low cash balance in December 2005 is now above the comfort threshold of $40,000.
Discussion on Board Director attendance at Board Meetings. In the event that a board
member miss two consecutive meetings, a letter will be sent requesting that they
reevaluate their commitment to the board. Stress the importance of attendance at
the meetings and that having gone through the rigorous nomination process, he/she
is viewed as a leader of the industry. After three meetings missed, the staff will
notify the governor’s office. Staff will check with Nancy at the Governor’s office
and draft this policy for the July meeting.
Finance Committee Report
Reviewed McClellan’s letter, which in short said that TOWER need have its own
committee. Regarding grant opportunities, the Finance Committee decided to define the
whole universe of grant possibilities, prioritize, then pursue.
P-N Motioned, Chambers seconded to create a subcommittee for TOWER to report to
the Finance Committee. Motion passed unanimously.
Discussion on who could serve as chair of this committee. Tim Ramey was suggested.
Chambers offered to call him and ask him to the next meeting.
Research and Education
Chambers reported that we are close to securing Eugene Hilton Convention Center for
2006 event. Step 2 is to approach OSU with new OWIS model. OSU is willing to
participate and want to be involved. Farthing has had discussions with organizers of NW
Wine Symposium and has invited them to be a content-providing partner as well. Annie
Connelly would be a good person to chair the Industry Education committee. Chambers
requested it be called the Oregon Wine Symposium committee, since the other industry
education goal of providing regional educational workshops is not happening this year.
Discussion that the regional workshops will eventually be an extension of the
symposium. Staff will send out a Save the Date notice for the symposium. Lotspeich
will contact Annie Connelly. Committee will meet in June. Chambers to reach out
to Al McDonald to invite him to participate.
Chambers has asked Allen Holstein to chair the Research Committee. Their first meeting
is 1pm Thurs @ Bethel Heights. OSU has requested $42,000 for this year’s research.
Chambers has notified them that there is a funding issue for this fiscal year, and can’t
promise such a significant portion of the $50,000 budgeted for research. The board has a
problem with their requesting money to support research rather than issuing an RFP to
address the industry’s needs and having OSU bid on it. OSU has said that in order to
continue the research that OWB “has committed them to doing”, the OWB needs to come
up with $42,000. This type of request does not fit the Research and Education goals and
strategies as stated in the Strategic Plan. Discussion of view of what “research” is, the
difference between those who view research as scientific pertaining to plants, and a
broader perception which includes market research. More importance needs to be given
to the “education” part of the committee. Chambers sees three questions – how do you
grow better grapes? How do you make better wine? How do you sell it? We need to
open up the dialog with our partners out there (Chemeketa, OSU, etc.) to let them know
where we stand. Short shoot syndrome has been an even bigger problem this year than
last. Adelsheim suggested that the marketing committee come up with marketing
research priorities and the Allen Holstein group come up with plant research priorities,
and it’s up to the board to plug that input back into the Strategic Plan. Funding side is
critical – grants, TOWER, industry donations. Chambers will get status report on
Omnibus project from OSU and what constitutes “complete existing research
commitments gracefully”. To get a sense of board opinions on the subject, Adelsheim
asked if each board member anticipates that OWB will issue RFPs to which OSU can
submit proposals, and all answered yes. Jones, Adelsheim, and Farthing will meet
with OSU to communicate this message.
Chambers is in contact with Vicki Sharlau and the Washington State Risk Management
Grant people; has experienced some frustration. National research initiative – Chambers
cannot attend the meeting in Seattle.
Marketing Committee Report
Weisinger reported that Media Camp planning is coming along well. The itinerary was
trimmed to seven days, which are packed with activities. Invitations went out this week –
70 Tier 1 invitations for 30 spots.
Farthing reported that for Oregon Bounty this year, a retail component will be added.
Due to response from many wineries, the financial burden on them will be lightened.
Hazelnuts, pears, cheese and servers will be provided free of charge – the only cash cost
to the wineries is $250. The promotion will run over the four weekends of November.
Stoll reported on export. 22 wineries participated in the Asia mission. Five of six who
were looking for distribution in Japan have said they are confident they will have an
agreement within six months. At least three distributors in Japan are looking to add three
of four Oregon brands to their portfolios. China is a more challenging market; four or
five new Oregon listings in Shanghai would be considered a success. Ten Canadian
campers are being hosted by the export group at OPC. A delegation of five to seven
Japanese and Chinese trade and press will be hosted for IPNC. The Northwest Wine
Coalition allocation for FY 05-06 should be at least the same or more than last year.
Administrative costs will go down, and Farthing will work with Washington’s new E.D.
on projects the two states can do together.
Chambers asked about the joint OWB-WWC meeting. Hasn’t yet been scheduled; will
probably happen once their new E.D. is in place.
OWB meeting was recessed at 1:30pm.