EXHIBIT 20.8

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):  May 8, 1998


                          The CHALONE Wine Group, Ltd.
                   -------------------------------------------
               (Exact Name of Registrant as Specified in Charter)



        California                      0-13406                  94-169731
-------------------------------       -----------              -------------
(State or Other Jurisdiction of       (Commission              (IRS Employer
       Incorporation)                 File Number)           Identification No.)


         621 Airpark Road
          Napa, California                                         94558
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(Address of Principal Executive Offices                          (Zip Code)


Registrant's telephone number, including area code     707-254-4200    
                                                  ------------------------------


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Item 5.  Other Events.

         The Chalone Wine Group,  Ltd. (the  "Company")  recently  completed the
issuance  of  828,571  shares  of its  common  stock  upon the  exercise  by the
principal  holders of all the Company's  issued and  outstanding  $7.00 warrants
issued pursuant to that certain Common Stock Purchase  Agreement dated March 29,
1993 (the "1993 Warrants").

         All of the shares  issued on the  exercise  of the 1993  Warrants  have
been,  or will  be,  issued  pursuant  to an  exemption  from  the  registration
requirements  of  federal  and  state  securities  laws and,  consequently,  the
certificates representing the shares bear an appropriate restrictive legend. The
terms of the 1993 Warrants provide all warrantholders with certain  registration
rights.  The Company has received notice that certain  warrantholders  intend to
demand  registration of 185,714 shares of the Company's common stock received on
the  exercise  of  the  1993  Warrants.  The  Company  believes  that  no  other
warrantholders  intend to exercise  registration rights. The Company anticipates
filing a  registration  statement to effect the foregoing  registration  in June
1998 at its cost. The shares  registered  thereby may be resold into the trading
market  for the  common  stock of the  Company  anytime  after the  registration
statement is declared  effective  by the  Securities  and  Exchange  Commission,
pursuant to the prospectus included therewith.

         Since  December  31, 1997 the Company has  received  gross  proceeds of
$5,799,997 from the exercise of the 1993 Warrants. The Company anticipates using
such proceeds for the reduction of existing short-term  indebtedness and working
capital.


                                   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 hereunto duly authorized.

                                               The CHALONE Wine Group, Ltd.
                                               ---------------------------------
                                                      (Registrant)




                                           By: /s/ William L. Hamilton
                                               ---------------------------------
                                               William L. Hamilton
                                               Executive Vice President, Chief
                                               Financial Officer, and Director
Dated:  May 8, 1998