Constellation to stop growing Finger Lakes grapes

Perinton-based Constellation Brands Inc. has decided to give up the grape-growing game in the Finger Lakes.

For 10 years, the company has grown grapes for several of its wines on 700 acres of vineyards near Seneca and Keuka lakes. In an early lease termination, that practice will end on March 2.

The decision could also mean job losses for 15 workers associated with the vineyards.

"We are basically getting out of the farming business and being able to focus on our core business ... producing our wines," said Angie Blackwell, director of corporate communications for Constellation.

Constellation will still grow grapes in vineyards in California and overseas.

Blackwell said it's more efficient for the company to purchase grapes from Finger Lakes farmers, also noting that the company was producing more grapes than it needed and then had to find buyers for the surplus.

The landowner, Mike Doyle, president of Pleasant Valley Wine Co., said the agreement is amicable.

Pleasant Valley, based in Hammondsport, Steuben County, will take over the vineyards, Blackwell said.

Constellation is in talks with Pleasant Valley about the possibility of it hiring the 15 employees. If the company cannot take on the workers, Constellation will offer them a severance plan and services to help them find new jobs.

"We are definitely considering hiring some of them," Doyle said.

Constellation, the world's largest wine company, purchases grapes from a number of growers in the Finger Lakes and will now buy them from Pleasant Valley as well.

The news comes on the heels of lower profits announced by the company in January, when its fiscal year 2009 third-quarter results were released. Constellation posted a profit of $83.5 million, or 38 cents per share, down from $119.6 million, or 55 cents per share, a year earlier.