CONSTELLATION BRANDS, INC. — Director's Dealing 2004

Oct 26, 2004

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CHALONE WINE GROUP LTD (CHLN)
CIK: 0000742685
Period of Report: 2004-08-21

Reporting Person: CONSTELLATION BRANDS, INC. (See note (3).)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2004-08-21	Common Stock	C	1033363	$9.4207	Acquired	6589466	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2004-08-21	9% Convertible Subordinated Promissory Notes	$9.4207	C	1033363	Disposed	2004-08-21	Common Stock (1033363)	Indirect

Footnotes

F1: The Reporting Person disclaims beneficial ownership of such securities, except to the extent, if any, of the Reporting Person's pecuniary interest therein. See note (3).

F2: Based on information provided by another person (the "Other Person"). The Reporting Person has no responsibility for the accuracy or completeness of such information.

F3: The Reporting Person does not own any securities of the Issuer, but may be deemed to be a member of a group, within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, which may be deemed to beneficially own the reported securities. The securities reported in column 5 of Table I and column 7 of Table II are directly owned by the Other Person who may be deemed to be a member of such group. The Reporting Person has a contractual right to receive a portion of the proceeds of the sale of such securities under certain circumstances. Neither the filing of this Form 4 nor any of the information contained herein shall be construed as an admission that the Reporting Person has formed or is a member of any such group, or beneficially owns or has a pecuniary interest in any such securities. See note (1).

F4: Based on information provided by the Other Person, $11,000,000 aggregate principal amount of 9% convertible subordinated promissory notes of the Issuer (the "Notes") held by the Other Person were automatically converted upon maturity to 1,033,363 shares of the Issuer's common stock.

F5: Based on information provided by the Other Person, the Notes were automatically convertible on 08/21/04 unless converted earlier at the option of the holder upon a change of control of the Issuer.