SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.

                                 FORM 10-Q


[x]  QUARTERLY   REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
     SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended    AUGUST 1, 1998
 
                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
     SECURITIES EXCHANGE ACT OF 1934
For the transition period from       to

                        Commission File Number 0 - 1653

                              GENESEE CORPORATION
          (Exact name of registrant as specified in its charter)

 STATE OF NEW YORK                                          16-0445920
  (State or other jurisdiction of                         (I.R.S. Employer
  incorporation or organization)                           Identification No.)

 445 St. Paul Street, Rochester, New York                   14605
 (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code   (716) 546-1030

Indicate  by check  mark  whether  the  Registrant  (1) has  filed all
reports  required  to  be  filed  by  Section  13  or 15  (d)  of  the
Securities  Exchange  Act of 1934 during the  preceding  12  months(or
for such  shorter  period  that the  registrant  was  required to file
such  reports),  and (2) has been subject to such filing  requirements
for the past 90 days.   Yes  X      No


As of the  date of  this  report,  the  Registrant  had the  following
shares of common stock outstanding:

                                              Number of Shares
                Class                           Outstanding


      Class A Common Stock (voting),                209,885
        par value $.50 per share


      Class B Common Stock (non-voting),          1,409,024
        par value $.50 per share

<PAGE>
                                       2

                      GENESEE CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                         August 1, 1998 and May 2, 1998
<TABLE>
<S>                                                                                  <C>                      <C>    
                                                                                      UNAUDITED                AUDITED
(Dollars in Thousands)                                                              August 1, 1998          May 2, 1998

ASSETS
     Current assets:
         Cash and cash equivalents                                                     $ 10,977                2,692
         Marketable securities available for sale                                         8,053               17,808
         Trade accounts receivable, less allowance for doubtful receivables
            of $442 at August 1, 1998; $433 at May 2, 1998                               11,691               10,163
         Inventories, at lower of cost (first-in, first-out) or market                   14,921               14,258
         Deferred income tax assets                                                       1,315                1,315
         Other current assets                                                               993                  683
                                                                                       
            Total current assets                                                         47,950               46,919

     Net property, plant and equipment                                                   32,871               33,311
     Investment in and notes receivable from unconsolidated real estate partnerships      5,495                5,534
     Investments in direct financing and leveraged leases                                34,116               34,638
     Goodwill and other intangibles, net                                                 10,399               10,737 
     Other assets                                                                         4,674                4,450
                                                                                      
            Total assets                                                                135,505              135,589
                                                                                     

LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities:
         Accounts payable                                                                 7,801                8,358
         Income taxes payable                                                             1,148                  692
         Federal and state beer taxes payable                                             1,725                1,756
         Accrued expenses and other                                                       7,665                7,255
                                                                                       
            Total current liabilities                                                    18,339               18,061

     Deferred income tax liabilities                                                      8,958                9,295
     Accrued postretirement benefits                                                     15,415               15,415
     Other liabilities                                                                      412                  471
                                                                                      
            Total liabilities                                                            43,124               43,242

     Minority interests in consolidated subsidiaries                                      2,211                2,227
     Shareholders' equity:
         Common stock Class A                                                               105                  105
         Common stock Class B                                                               753                  753
         Additional paid-in capital                                                       5,856                5,842
         Retained earnings                                                               86,709               86,143
         Unrealized gain on marketable securities, net of income taxes                      190                  752
         Less treasury stock, at cost                                                     3,443                3,475
                                                                                      
                                                                                     
            Total shareholders' equity                                                   90,170               90,120
                                                                                      

            Total liabilities and shareholders' equity                               $  135,505              135,589
                                                                                      
         See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
                                       3

               GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
                             CONSOLIDATED STATEMENTS
                        OF EARNINGS AND RETAINED EARNINGS
             Thirteen Weeks Ended August 1, 1998 and August 2, 1997
<TABLE>

(Dollars in Thousands,
Except Per Share Data)
<S>                                                                       <C>                        <C>  
                                                                                      UNAUDITED
                                                                          1998                        1997

Revenues                                                               $ 48,595                      53,052

         Federal and state beer taxes                                     9,204                      10,107
                                                                    
Net revenues                                                             39,391                      42,945

          Cost of sales                                                  29,709                      32,082
                                                                     
Gross profit                                                              9,682                      10,863

           Selling, general and administrative expenses                   9,088                       9,218
                                                                     
Operating Income                                                            594                       1,645

          Investment income                                               1,199                         834
          Other income / (expense), net                                     166                         (31)
          Interest of minority partners in earnings of
              consolidated subsidiaries                                    (197)                       (189)
                                                                     

Earnings before income taxes                                              1,762                       2,259

         Income taxes                                                       630                         842
                                                                     
Net earnings                                                              1,132                       1,417
Basic and Diluted earnings per share                                       0.70                        0.88

Retained earnings at beginning of period                                 86,143                      87,720

          Less:  dividends - $.35 per share in 
                 1998 and $.35 per share in 1997                            566                         566

Retained earnings at end of period                                     $ 86,709                      88,571
                                                                    

See accompanying notes to consolidated financial statements.


</TABLE>
<PAGE>
                                       4

               GENESEE CORPORATION AND CONSOLIDATED SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             Thirteen Weeks Ended August 1, 1998 and August 2, 1997
<TABLE>

(Dollars in Thousands)
                                                                                UNAUDITED
<S>                                                                        <C>              <C> 
                                                                           1998             1997

Cash flows from operating activities:
     Net earnings                                                      $  1,132          $  1,417 
     Adjustments to reconcile net income to net cash
      (used in) provided by operating activities:
               Depreciation and amorization                               1,590             1,399
               Other                                                        205               211 
     Changes in non-cash assets and liabilities:
               Trade accounts receivable                                 (1,461)           (1,621)
               Inventories                                                 (663)           (1,603) 
               Other assets                                                (417)             (669)
               Account payable                                             (556)              198
               Accrued expenses and other                                   411            (2,041)    
               Income taxes payable                                         456               428
               Federal and state beer taxes                                 (31)               31  
               Other liabilities                                            (59)              (69)    

                    Net cash provided by (used in) operating activities     607            (2,319) 
                                                                       
Cash flows from investing activities:
     Purchase of Freedom Foods, net of cash acquired                         -            (11,060)
     Capital expenditures                                                (1,006)           (2,173)
     Sales of marketable securities                                       9,304            21,456
     Purchase of marketable securities                                     (447)           (8,324) 
     Investments in and advances to unconsolidated real
       estate investments, net of distributors                               40               (11) 
     Net investment in direct financing and leveraged leases                522              (572) 
     Withdrawals by minority interest                                      (214)              (19)
                   
                     Net cash provided by (used in) investing activities   8,199              (703) 

Cash flows from financing activities:
     Principle payments on mortgage payable                                   -                 (4)
     Payment of dividends                                                  (567)             (566)
     Net proceeds from treasury stock transactions                           46                35

                    Net cash used in financing activities                  (521)             (535)

Net increase (decrease) in cash and cash equivalents                      8,285            (3,557)

Cash and cash equivalents at beginning of the year                        2,692             4,521 

                    Cash and cash equivalents at end of period        $  10,977         $     964

         
See accompanying notes to consolidated financial statements.

</TABLE>                                                            
<PAGE>
                                       5



                            GENESEE CORPORATION

Notes to Consolidated Financial Statements


NOTE (A)   The   Corporation's   consolidated   financial   statements
           enclosed  herein are  unaudited  with the  exception of the
           Consolidated  Balance Sheet at May 2, 1998 and,  because of
           the  seasonal  nature  of  the  business  and  the  varying
           schedule of its special  sales  efforts,  these results are
           not  necessarily  indicative  of the results to be expected
           for the entire year.     In  the  opinion  of   management,
           the interim financial  statements  reflect all adjustments,
           consisting  of  only  normal   recurring  items  which  are
           necessary  for a fair  presentation  of the results for the
           periods presented.  The accompanying  financial  statements
           have  been  prepared  in  accordance   with  GAAP  and  SEC
           guidelines  applicable  to interim  financial  information.
           These  statements  should be reviewed in  conjunction  with
           the  financial  statements  presented in the  Corporation's
           Annual  Report to  shareholders  for the year  ended May 2,
           1998.

NOTE (B)   The weighted  average  number of Class A and Class B shares
           outstanding  used in the  computation of basic earnings per
           share is  1,618,444  for the  thirteen  week  period  ended
           August 1, 1998 and  1,617,611  for the thirteen week period
           ended  August 2,  1997.  The  weighted  average  and common
           equivalent  shares  of  Class  A and  Class  B used  in the
           computation of diluted  earnings per share is 1,619,350 for
           the   thirteen   week  period  ended  August  1,  1998  and
           1,621,513  for the  thirteen  week period  ended  August 2,
           1997.

NOTE (C)   Inventories are summarized as follows:
<TABLE>
<S>         <C>                                                  <C>                    <C>   

                                                                      Dollars in thousands
                                                           August 1, 1998              May 2, 1998

           Finished goods                                       $  4,858                $  5,567
           Goods in process                                        1,919                   1,664
           Raw materials, containers and packaging supplies        8,144                   7,027
                Total inventories                               $ 14,921                $ 14,258
</TABLE>

NOTE (D)   On August  3,  1998,  the  Corporation  acquired  all of the
           capital  stock of TKI Foods,  Inc., a food  company  located
           in  Springfield,  Illinois,  and certain  assets of Spectrum
           Foods,  Inc.,  an  affiliated  company  located in  Decatur,
           Illinois  for $19.9  million.  For the year  ended  December
           31,  1997,  TKI  Foods and the  lines of  business  acquired
           from Spectrum  Foods  recorded  approximately$21  million in
           sales   from  the   manufacture   and  sale  of   artificial
           sweeteners  and  other  private  label  food  products.  TKI
           Foods sells to many of the same  supermarket  chains already
           buying  private  label  soup,  side  dish,   drink  mix  and
           bouillon  products from the  Corporation's  Foods  Division.
           The    Corporation    intends   to   relocate   TKI   Foods'
           manufacturing  and sales  operations  to its Foods  Division
           facility  in  western,   New  York.  The   acquisition   was
           financed  through the  combination  of $10.0  million from a
           commercial   bank  credit   facility  and  $9.9  million  of
           internally   generated   funds.   The  acquisition  will  be
           accounted  for  using  the  purchase  method,   whereby  the
           purchase  price will be allocated to the  underlying  assets
           and liabilities based upon their estimated fair values.
 
                                                  
<PAGE>
                                       6


                            GENESEE CORPORATION


Item 2.      Management's   Discussion   and   Analysis  of  Financial
             Condition and Results of Operations


Comparison of 13 weeks ended August 1, 1998 to 13 weeks ended August 2, 1997


      Consolidated  net revenues  for the thirteen  weeks ended August
1, 1998 were $39.4  million,  as  compared  to $42.9  million  for the
same period  last year.  The lower  revenues  were the result of lower
sales  volume  at the  Genesee  Brewing  Company  and  lower  contract
manufacturing revenue for the Foods Division.

      Consolidated  operating income was down $1.1 million,  primarily
due to lower  sales  volume at Genesee  Brewing  Company  and  Ontario
Foods.

      Earnings  before income taxes were $1.8  million,  down $497,000
from the prior  year.  The  decrease  was  reduced by an  increase  of
$415,000  of  realized  capital  gains.   Realized  capital  gains  of
$883,000  were  recorded in the first  quarter of fiscal 1999 when the
corporation  sold  marketable  securities  in  order  to  finance  the
acquisitions  of TKI Foods,  Inc. and Spectrum  Foods,  Inc.  Realized
capital  gains of  $468,000  were  recorded  in the first  quarter  of
fiscal 1998 when the corporation  sold marketable  securities in order
to finance the acquisition of  Freedom  Foods.

      On a consolidated basis, the Corporation  reported  consolidated
net earnings of $1.1 million,  or $.70 basic and diluted  earnings per
share,  in the first  quarter  this year,  compared to net earnings of
$1.4 million,  or $.88 basic and diluted  earnings per share,  for the
same period last year.


Genesee Brewing Company

      Genesee  Brewing  Company's  net sales in the first quarter were
$32.4  million,  a decrease of $2.8  million  from last  year's  first
quarter  net  sales.  Barrel  sales  for the first  quarter  this year
were down 10.7% over last year due  primarily  to an 9.6%  decrease in
Genesee  Brewing  Company's  Core  brands and lower  volume  under the
brewing   contract  with  Boston Beer Company.   The Highfalls brands,
which represent 25% of total volume, declined slightly in the first 
quarter, despite a slight increase in volume for JW Dundee's Honey 
Brown Lager.

      Contract  brewing  volume was down 24,000  barrels (or 31%) over
the first  quarter  last year.  The  decline  in volume was  partially
due to  the  planned  reallocation  of  production  during  the  first
quarter  of  a  portion  of  Boston  Beer  Company's  requirements  in
anticipation   of  the   start  of   production   of  a  new   package
configuration  by  Genesee  Brewing  Company.  Production  of the  new
package  configuration  was then delayed by the  inability of a Boston
Beer  Company  supplier to deliver  packaging  materials.  The decline
in  volume  was  also  due to a  shift  in  production  and  sale of a
seasonal  product to August  versus  July in the prior year and Boston
Beer  Company  moving a short run brand  and 22oz.  packages  to their
Cincinnati,  Ohio plant.  Volume  under this  contract has reached the
maximum  level  required  by  Boston  Beer  Company  to meet  consumer
demand in the markets where Boston Beer Company  products  produced by
Genesee Brewing Company are sold.



<PAGE>
                                       7


                             GENESEE CORPORATION


Item 2.      Management's   Discussion   and   Analysis  of  Financial
             Condition and Results of Operations (continued)


      Genesee  Brewing  Company's gross profit  decreased  $802,000 to
$8.4  million,  or 25.9% of net sales,  in the first quarter of fiscal
1999,  compared to $9.2 million,  or 26.2% of net sales,  in the first
quarter of fiscal  1998.  The  decrease  in gross  profit  margins was
primarily  the  result of the  continued  shift in sales  mix  towards
lower-margin multipak can packages.

      Genesee Brewing Company's  selling,  general and  administrative
expenses  were down  $745,000  in the  first  quarter  of fiscal  1999
compared  to the same  period last year.  This  decrease is  primarily
the  result  of  planned  decreases  in  spending  as a result of cost
reduction efforts implemented in fiscal 1998.

      Due to the decline in barrel volume and revenues,  first quarter
operating  income for Genesee  Brewing  Company  declined to $474,000,
compared to  operating  income of $531,000 in the first  quarter  last
year.

      As previously reported, the beer industry in the United States
continues to be highly competitive.  The industry is dominated by
Anheuser Busch, Inc., Miller Brewing Company and Coors Brewing Company
which together account for more than 80% of domestic production.  In
comparison, the volume of malt beverages produced by Genesee Brewing
Company represents only about 1% of annual domestic production.  In
recent years, per capita consumption of malt beverages in the United
States has declined and total consumption has grown by an average of
less than 1% a year.  However, consumption of domestically produced malt
beverages has remained basically flat during this period, with the
increase in overall consumption coming largely from the increasing
popularity of imported malt beverages.

      During the past ten years, demand for many established domestic
brands has declined as consumers have turned to new domestic brands,
imports and the diverse range of beer styles offered by the craft beer
segment.  However, a slowdown in the craft beer segment of the industry
that began in 1997 has continued so far in calendar 1998.

      As a result of these trends and the excess capacity that exists in
the industry, brewers are attempting to gain market share through
reduced pricing, intensive marketing and promotional programs, new
product introductions and innovative packaging.  In addition, the
industry has seen increased levels of price discounting and price
promotions and a growth in popularity of value priced 30 and 36 can
Multipaks.  Although Anheuser Busch, the largest domestic brewer,
recently announced its intention to increase prices on certain brands
and packages in certain markets, there can be no assurance that these
increases will remain in place if they are implemented or that they will
provide any meaningful relief in the markets where Genesee Brewing
Company products are sold.

     The  competitive  position of smaller  brewers like Genesee Brewing Company
has also been adversely  affected by the consolidation  that is occurring within
the  distribution  tier of the brewing  industry.  The National Beer Wholesalers
Association estimates that the number of beer wholesalers in the United
                                                       


<PAGE>
                                       8


                         GENESEE CORPORATION


Item 2.      Management's   Discussion   and   Analysis  of  Financial
             Condition and Results of Operations (continued)

States declined by 14% between 1992 and 1997.  The effects of this
consolidation have been aggravated by the aggressive efforts of the
large national brewers to obtain an increasing share of the
distributor's time and attention devoted to their brands.  During the
past several years, the large national brewers have implemented a
variety of inducements, incentives and contractual terms to cause their
distributors to make a greater commitment to their brands, largely at
the expense of the brands of smaller brewers, like Genesee, that are
also sold by these distributors.  These developments have made it
increasingly difficult for Genesee Brewing Company to effectively
promote and sell its brands in its core markets and to expand sales of
its products in new or lower share markets.

      The competitive conditions in the brewing industry that are
impacting the performance of Genesee Brewing Company are not expected to
abate in the near term.

Foods Division

      Net sales for the Foods  Division were $6.2 million in the first
quarter  of  fiscal  1999,  compared  to $7.1  million  for the  first
quarter  last year,  traditionally  the  slowest  period for the Foods
Division.  The  decline in sales was  attributable  to lower  contract
manufacturing   revenues  in  the  first   quarter.   The  prior  year
benefited  from a government  soup  contract and a contract to package
infant  cereal  that  were   completed  in  fiscal  1998.   The  Foods
Division  is  not  aggressively   seeking  to  replace  this  contract
manufacturing  business,   instead  devoting  resources  to  its  core
retail private label  business and the  relocation and  integration of
the  recently  acquired  TKI Foods,  Inc.  and  Spectrum  Foods,  Inc.
business into the Foods Division.

      Lower then  expected  sales of iced tea mix and side dishes also
contributed  to the  decline  in Foods  Division  sales  in the  first
quarter  of fiscal  1999.  Foods  Division  iced tea mix and side dish
sales were  adversely  affected  by heavy  promotions  for branded ice
tea and  side  dish  products.  Despite  lower  iced  tea mix and side
dish sales,  retail private label net sales increased  $324,000 in the
first  quarter to $6.1  million,  due in part to a  $236,000  increase
in  bouillon  sales.  The  Freedom  Foods line of  bouillon  cubes and
powder were  acquired  during the first  quarter of fiscal 1998 so the
prior year period  included two fewer weeks of bouillon business.

      The Foods Division had an operating  loss of $265,000,  compared
to an operating  profit of $253,000 in the first  quarter last year, a
decrease of $518,000.

Genesee Ventures

      Genesee Ventures,  Inc., the Corporation's equipment leasing and
real  estate  investment  subsidiary,  reported  operating  income  of
$787,000 for the first quarter of fiscal 1999, compared to


<PAGE>
                                       9

                                                      

                         GENESEE CORPORATION


Item 2.      Management's   Discussion   and   Analysis  of  Financial
             Condition and Results of Operations (continued)

$673,000 for the first  quarter of fiscal 1998.  The higher  operating
income was primarily due to an increase in equipment lease revenue.

LIQUIDITY AND CAPITAL RESOURCES

      Cash, cash equivalents,  and marketable securities totaled $19.0
million  at  August  1, 1998 and $20.5  million  at May 2,  1998.  The
decline in cash, cash equivalents,  and marketable  securities was the
result of an  increase  in accounts  receivable.  The Genesee  Brewing
Company's  accounts  receivable is traditionally  larger at the end of
the first  quarter  due to higher  summer  sales as compared to fiscal
year end sales levels.  Marketable  securities  decreased $9.8 million
in the first  quarter,  which was partially  offset by an $8.3 million
increase in cash and cash  equivalents  to position the cash  balances
for the  purchase  of all the  capital  stock of TKI Foods,  Inc.  and
certain assets of Spectrum Foods, Inc.
 
      Inventories  at  August  1,  1998  were  approximately  $663,000
higher than the balances  reported at May 2, 1998  partially due to an
inventory  build to  support  sales of a seasonal  product  for Boston
Beer.  Foods  Division  inventory  also increased in the first quarter
to support fall bouillon sales.
 
      The  Corporation  has a  strategy  to  search  for  and  develop
opportunities  which  will  contribute  to the  future  growth  of its
non-brewing  business.  The  Corporation  plans to use its significant
capital  resources  to further  expand its Foods  Division  to broaden
its profit base and contribute to the continued  long-term  success of
the Corporation.

      The Corporation  expects to fund future capital needs internally
as it has in the past.  With  respect  to real  estate  and  equipment
leasing,   such   investments  may  also  include  a  debt  component,
generally  obtained on a  non-recourse  basis.  The  Corporation  also
continues to seek  acquisition  opportunities  in the foods  industry.
Any  such  acquisition  may  involve  new  debt or the  assumption  of
existing debt.

      The Corporation is addressing Year 2000 compliance to ensure the
availability and integrity of its financial, operating and information
systems.  The Corporation is making investments in its information
systems and applications to ensure they are Year 2000 compliant through
either replacement of existing systems with new Year 2000 compatible
systems or modifications of its current systems.

      The Corporation does not expect that the cost of replacing and
modifying its information systems to achieve Year 2000 compliance will
be material to its financial condition or results of operations.  The
Corporation is also working with its suppliers and customers to ensure
their compliance with Year 2000 issues in an effort to avoid any
business interruptions.  At this time the Corporation does not expect
that its business or operations will be materially affected if
significant suppliers or customers do not successfully and timely
achieve Year 2000 compliance.

                                                         
<PAGE>
                                       10



                          GENESEE CORPORATION


PART II.  OTHER INFORMATION


 
Item 6.      Exhibits and Reports on Form 8-K

    (a)         No exhibits are being filed with this report.

    (b)         The  Corporation  did not file any reports on Form 8-K
                during the quarter for which this report is filed.



                                SIGNATURES

Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this  report  to be  signed  on its
behalf by the undersigned thereunto duly authorized.



Date:    9/11/98          / s /  Robert N. Latella
                          Robert N. Latella
                          Executive Vice President and Chief Operating Officer



Date:    9/11/98          / s /  Michael C. Atseff
                          Michael C. Atseff
                          Vice President and Controller