[Logo]  [Canandaigua Wine Company]



October 5, 1999



Jon Moramarco
672 Greenview
Santa Rosa, CA  95403

Dear Jon:

I am pleased to confirm  the terms of the offer  extended  to you for a position
with Canandaigua Wine Company, Inc. ("CWC" or the "Company").  As discussed, the
position is President and Chief Executive Officer reporting to me.

With regards to your compensation, the following describes the package:

o    Starting  biweekly base  compensation of $13,269.23  ("Base  Compensation")
     subject to all deductions and withholdings required by law.

o    Upon your  employment you will receive an option to purchase  50,000 shares
     of Canandaigua  Brands,  Inc.  ("CBI") Class A Stock at the market price on
     the date of the grant  which  shall be as soon as  practicable  after  your
     first day of  employment.  The option  shall  contain  the  standard  terms
     contained in grants  currently being made to employees with a similar level
     of responsibility.

o    You will be  eligible  for  participation  in the  annual  Long Term  Stock
     Incentive  Plan which  provides you with CBI Stock options with a target of
     1.5 times  Base  Compensation  earned  and a  maximum  of 1.75  times  Base
     Compensation  earned  divided by the share  market price on the date of the
     grant.  For this fiscal  year,  the number of options you will receive will
     equal 1.5 times your actual Base  Compensation  earned divided by the share
     market price on date of grant.

o    You will be eligible for a an annual  discretionary  bonus with a target of
     50% and a maximum of 87.5% of your earned Base Compensation. Your bonus for
     this fiscal year,  however,  shall not be less than 50% of your actual Base
     Compensation earned.

o    Relocation  expenses will be reimbursed as per the Company's most inclusive
     option  under  its  relocation  policy.  In  addition,  the  Company  shall
     reimburse  you for temporary  housing  during a period of up to twelve (12)
     months prior to your family's relocation to the Rochester, NY area.

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o    You are eligible for three (3) weeks  vacation in each  calendar year until
     such time as you  become  eligible  for more  vacation  under our  vacation
     policy, as such policy is amended from time to time.

o    If you are terminated by the Company  without  cause,  as determined in the
     sole discretion of the Company,  you will receive  twenty-four  (24) months
     (reduced as hereafter provided) of Base Compensation  ("Severance") in full
     and final satisfaction of all the Company's  obligations to you arising out
     of such  termination,  conditioned  upon your agreement to the terms of and
     execution of the Company's  standard form of Severance  Agreement,  General
     Release  and  Waiver,  as such may be amended by the  Company  from time to
     time. Beginning with your first day of employment, for every two (2) months
     of employment,  you will receive one (1) month less of Base Compensation as
     Severance  such that at the end of one year of  employment  and during your
     remaining term of  employment,  you will receive no less than eighteen (18)
     months of Base  Compensation  as  Severance  arising  out of a  termination
     without cause, subject to the other terms herein above provided.

o    You will be eligible for your first  performance  and  compensation  review
     which will be conducted and effective as of November, 2000.

o    You will be eligible to participate in all existing  employee benefit plans
     as you become  eligible under the terms of such plans as amended,  added to
     or  discontinued  from time to time,  such as the health  care,  disability
     insurance,  life  insurance,  profit  sharing,  401(k) and  employee  stock
     purchase plans.

o    This offer is subject to the terms of the CWC Employment Application.


Lastly,  by executing this letter of agreement,  you  acknowledge and agree that
your employment with CWC is at will, meaning that it can be terminated by you or
CWC at any time,  with or without cause.  You further  understand and agree that
this letter constitutes the entire agreement of the parties,  and is governed by
New York State law. You hereby consent to binding arbitration under the rules of
the American  Arbitration  Association as they relate to commercial  disputes in
Rochester,  NY as the sole and  exclusive  means for  resolution of any disputes
which may arise hereunder or in connection with your employment.  No arbitration
award shall include any punitive,  incidental,  consequential or special damages
of any kind.  Any such  arbitration  award may be  entered  in any court  having
appropriate  jurisdiction.  There are no other written or oral agreements of the
parties,  and this letter of agreement cannot be modified or amended,  except in
writing executed by your direct supervisor.

If you have additional  questions  regarding this offer, or any issues regarding
your acceptance of this position, please call me within the next few days.



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Please  sign below and return  this  letter in the  enclosed  envelope so we can
expedite your employment process.

Sincerely,

CANANDAIGUA WINE COMPANY, INC.



/s/ Robert S. Sands
---------------------------
Robert S. Sands

RSS:eb



ACCEPTED AND AGREED TO:


/s/ Jon Moramarco
---------------------------
Jon Moramarco

DATE:


October 7, 1999
---------------------------