Vintner to Close Grape Juice Factory

Canandaigua Wine Co. will close its grape concentrate plant in the San Joaquin Valley town of Escalon to focus on making wine, company executives said.

Canandaigua spokeswoman Lisa Farrell said its grape concentrate products were facing declining sales. The company will lay off 42 workers and shutter the facility, which is near Modesto.

Grape concentrate is used as a sweetener in fruit juices, sport drinks and other products.

Canandaigua is a division of New York-based Constellation Brands Inc., the world’s largest producer and marketer of wine.

Some grape industry leaders said they were concerned about the Escalon plant closure, fearing that it could open the doors for foreign-made concentrate. The concentrate business has served as an important outlet for San Joaquin Valley grape growers, who supply a majority of the state’s grape concentrate, estimated to be worth $150 million a year.

The U.S. imports about $53 million worth of grape juice and concentrate. Argentina accounts for 61% of the import total.

“We know that with the focus on health and nutrition, people are thinking more about fruit juice drinks,” said Karen Ross, president of the California Assn. of Winegrape Growers.

“So there continues to be a good outlook for the overall demand for concentrate. The question becomes, will it come from California?”