>>>
>>> WELCOME BACK, LET'S TALK ABOUT WINE.
ABOUT WINE. A BIG SHIP CUP IN THE WORLD OF
LINE.
LINE.
LINE. A
LINE. A MINNESOTA LAW THAT HAS BEEN
ON THE BOOKS SINCE THE 1980s
HAS BEEN OVERRULED BY A FEDERAL
JUDGE, AND THAT IS GIVING
WINEMAKERS IN OUR STATE MORE
FREEDOM TO BUY GRAPES FROM
ANYWHERE IN THE WORLD.
GRAPE GROWERS HERE, HOWEVER,
AREN'T EXACTLY HAPPY ABOUT
THIS.
THIS.
THIS. GORDON SEVERSON EXPLAINS HOW
THIS CHANGE MIGHT AFFECT YOU
THE NEXT TIME YOU GO TO A LOCAL
WINERY.
WINERY.
WINERY. >> Reporter: WHEN YOU OPEN A
BOTTLE OF WINE, DO YOU THINK
ABOUT WHERE IT CAME FROM, HOW
IT WAS MADE, WHAT KIND OF
GROUPS THEY USED OR HOW IT WAS
BLENDED?
BLENDED?
BLENDED? FOR MOST PEOPLE, NO.
THEY JUST ENJOY IT.
OF FERNAND BAILEY, A SECOND-
GENERATION WINEMAKER, IS
EVERYTHING.
EVERYTHING. AND THE THOUGHT OF SOMEONE
TELLING HER SHE CANNOT USE A
CERTAIN GRAPE OR BUY IT FROM A
CERTAIN SOURCE, IS LIKE TELLING
A PAINTER THEY CANNOT USE
CERTAIN COLORS.
CERTAIN COLORS. >> MOST WINEMAKERS, LIKE ANY
CREATIVE PEOPLE IN THE ARTS,
SHOP AT A RESTAURANT.
TO WANT TO TELL A SHOP AT A
RESTAURANT THEY CAN ONLY USE
FIVE INGREDIENTS TO CREATE
THEIR DINNER MENUS FROM?
THAT IS KIND OF HOW WE FELT AS
WINEMAKERS.
WINEMAKERS. >> Reporter: THAT IS HOW BAILEY
FELT ABOUT A MINNESOTA LAW THAT
REQUIRES FARM WINERIES LIKE
HERS IN HASTINGS TO USE GRAPES
MOSTLY FROM MINNESOTA, AT LEAST
51% HAS TO BE GROWN LOCALLY.
THE RULE WAS MEANT TO SUPPORT
LOCAL GROWERS AND TO SUPPORT
VARIETIES OF GRAPES THAT CAN
SURVIVE MINNESOTA WINTERS, MOST
OF THEM WERE RESEARCHED AND
DEVELOPED BY THE UNIVERSITY OF
MINNESOTA.
MINNESOTA. BAILEY HERSELF GROSSED 13 ACRES
OF GRAPES ON HER PROPERTY, AND
SHE SAYS MOST YEARS, SHE LOSES
A LOT OF THE GRAPES TO BAD
WEATHER, OR THE GRAPES ARE TWO
ACIDIC OR UNRIPE SO SHE NEEDS
TO BRING IN GROUPS FROM OTHER
STATES.
STATES.
STATES. >> WE HAD ASKED THEIR
PERMISSION, WE HAD TO FILE AN
AFFIDAVIT, WE HAD TO PROVE TO
THEM THAT WE COULD NOT SOURCE
OUR FOOD LOCALLY, THAT WE COULD
NOT GROW THE GRAPES.
AND WAIT FOR THEM TO GIVE US
PERMISSION TO BUY GRAPES FROM
OUT-OF-STATE.
OUT-OF-STATE. >> SHE AND ANOTHER MINNESOTA
WINEMAKER DECIDED TO SUE THE
STATE AND THIS WEEK, A FEDERAL
COURT JUDGE RULED IN THEIR
FAVOR, THE DEPARTMENT OF PUBLIC
SAFETY'S ALCOHOL AND GAMBLING
ENFORCEMENT DIVISION CONFIRMED
THE CHANGE WILL GO INTO EFFECT
IMMEDIATELY.
IMMEDIATELY. SAYING, QUOTE, "WE ARE
DISAPPOINTED IN THE RULING BUT
WE WILL RESPECT THE COURT'S
DECISION.
DECISION.
DECISION. >> WHAT I HOPE IT WILL DO IS
CHANGE THE INDUSTRY IN THE
FUTURE.
FUTURE.
FUTURE. FOR PEOPLE WHO WANT TO GET INTO
THE WINE INDUSTRY.
>> Reporter: BAILEY EXPECTS TO
SEE EVEN MORE WINERIES IN THE
COMING YEARS, AND WINEMAKERS
WILL BE FREE TO EXPERIMENT AND
TRY NEW BLENDS.
HOWEVER, JENNY, WITH A
MINNESOTA GRAPE GROWERS
ASSOCIATION, SAYS THE CHANGE
WILL ALSO BE DEVASTATING FOR
SOME LOCAL GROWERS.
>> FOR THE VINEYARDS, MOST
LIKELY WE WILL REDUCE THE VALUE
OF THEIR BRAKES GRAPES.
THERE WILL BE LESS NEW
VINEYARDS POPPING UP IN
MINNESOTA.
MINNESOTA. >> THAT IS BECAUSE THE 51% RULE
WAS HELPING THESE GROWERS
COMPETE WITH THE BIGGER GROWERS
ON THE EAST AND WEST COAST.
AND WITHOUT THAT HELP, SHE
WORRIES MANY MOM AND POP
VINEYARDS WILL SIMPLY GO OUT OF
BUSINESS.
BUSINESS.
BUSINESS. ALAN BECKER SAYS THERE ARE 91
WINERIES IN MINNESOTA AND THE
LAW CHANGE WILL AFFECT EACH ONE
OF THEM DIFFERENTLY.
>> IT JUST DEPENDS ON THE
BUSINESS PLAN OF THAT CERTAIN
WINERY.
WINERY.
WINERY. >> BAILEY SAYS NOT MUCH WILL
CHANGE ON HER END, SHE WILL
STILL MAKE THE SAME WINE SHE
DID BEFORE ONLY NOW SHE WILL
HAVE LESS PAPERWORK TO FILE AND
LESS REDTAPE IF SHE DECIDES TO
TRY SOMETHING DIFFERENT.
>> IT IS NOT LIKE THE
FLOODGATES WILL OPEN AND ALL OF
A SUDDEN ALL OF THE WINERIES
WILL JUST MAKE WINE FROM
CALIFORNIA FRUIT.
CALIFORNIA FRUIT. I BELIEVE THAT WE ARE PROUD
MINNESOTA WINEMAKERS.
MINNESOTA WINEMAKERS. >> NOW TO THE QUESTION, HOW
WILL THIS AFFECT YOU, THE
CONSUMER?
CONSUMER?
CONSUMER? WINEMAKERS TELL ME IT COULD
LOWER THE PRICES OF A LOT OF
DIFFERENT TYPES OF WINE BECAUSE
THERE WILL BE MORE COMPETITION,
BUT MOSTLY WE WILL JUST SEE
MORE WIND TO CHOOSE FROM WITH
WINEMAKERS BEING FREE TO
EXPERIMENT AND TRY NEW THINGS.
>> A COUPLE QUESTIONS, THE 51%,
THAT IS COMPLETELY GONE, AS ARE
NO LONGER A PERCENTAGE THEY
HAVE TO ABIDE BY?
>> YEAH, NO LONGER A
REQUIREMENT, THEY CAN TO 100%
FROM OUT-OF-STATE OR THEY CAN
DO 100% INSTEAD, THERE IS NO
LONGER ANY REQUIREMENT AT ALL.
>> YOU'RE REALLY INTO WINE AND
SO YOU KNOW THIS PRETTY WELL,
WHERE DO MINNESOTA WINEMAKERS
GET THERE GRAPES, LET'S SAY DO
THEY GET MOST OF THEM FROM THE
WEST COAST?
WEST COAST? OREGON, WASHINGTON, CALIFORNIA?
>> YEAH, CALIFORNIA IS A BIG
ONE, THERE IS A LOT OF HUGE
VINEYARDS OVER THERE THAT
ACTUALLY, MOST OF THEIR
BUSINESSES EXPORTING GRAPES TO
PRETTY OTHER STATES.
OREGON AND WASHINGTON IS REALLY
BIG, NEW YORK IS ALSO BIG WITH
WHITE WINE GRAPES.
THERE IS SOMETHING SAID THAT
WITH THIS CHANGE WE MIGHT LOSE
SOME OF OUR MIDWEST IDENTITY.
SOME OF THE GRAPES WE MENTIONED
EARLIER THAT WERE DEVELOPED AT
THE U OF M, SOME OF THOSE WILL
JUST GO AWAY, BUT THOSE TYPES
OF GROUPS ARE ALSO GROWN IN
STATES LIKE IOWA, WISCONSIN,
MICHIGAN AND OTHERS.
SO THEY WILL STILL BE AROUND
BUT WE JUST PROBABLY WILL NOT
SEE AS MANY OF THEM COMING OUT
OF MINNESOTA.
OF MINNESOTA. >> IT SOUNDS LIKE IT IS ONE OF
THOSE RULES THAT HAD REALLY
GOOD INTENTIONS, RIGHT?
WE WERE TRYING TO DO WHAT WAS
BEST FOR OUR WINEMAKERS BUT AT
THE SAME TIME KIND OF PINCHING
IN MY OUT OF BEING CREATIVE.
>> YEAH, THEY WERE TRYING TO
CREATE A BRAND HERE IN
MINNESOTA AND TRY TO ESTABLISH
IT AS ANOTHER WINE REGION,
WHICH I FEEL LIKE THEY