MN growers hope new initiative can uncork state's wine potential

Minnesota may not be at the tip of most tongues when drinkers are asked to list their favorite wines, but the industry is growing across the state and could soon receive another boost.

Sponsored by Rep. Bob Loonan (R-Shakopee), HF1831, as amended, would form the Minnesota Grape and Wine Council to help develop and promote the state’s wine industry. The bill, which has no Senate companion, was approved Wednesday by the House Agriculture Policy Committee and now travels to the House Commerce and Regulatory Reform Committee.

Steve Unverzagt, a board member with the Minnesota Grape Growers Association, testifies before the House Agriculture Policy Committee Feb. 28 in support of a bill sponsored by Rep. Bob Loonan, right, that would appropriate money for Minnesota wine promotion and education. Photo by Andrew VonBank

The council would consist of 15 voting members, including five wine producers licensed by the state, two commercial grape growers and representatives of several trade associations along with state officials.

It would review applications and award grants to projects that promote or develop Minnesota’s wine industry. Money for the grants would be raised by a tax on out-of-state, direct-to-consumers wine sales. 

WATCH Full video of Feb. 28 House Agriculture Policy Committee hearing

Michigan, Missouri and New York have created similar wine councils and have seen their “state made wine sales and industry increase significantly,” according to briefing materials presented to the committee.

Although the economic impact of Minnesota’s grape and wine industry is currently estimated to be $80 million a year, it accounts for less than 1 percent of the wine consumed in the state.

Advocates say the potential impact could be much greater. The wine and grape industry in Missouri has an economic impact of $1.7 billion.

Jenny Ellenbecker, co-owner of Round Lake Vineyard & Winery near Worthington, said her business, which began in 2006, is doing well and has a number of events throughout the year that draw people to her community.

She said forming the new council, could only help the industry improve.

“We do need more vines in Minnesota that produce good quality fruit,” Ellenbecker said. “If we do, our wines get better.”