Continuous production of wine in a tower fermentor by entrapped yeast cells of Saccharomyces cerevisiae in double layer alginate – chitosan beads (DAC beads) has been studied. The wine was produced from the grape variety of Muscat of Alexandria. Continuous fermentation was carried out for 53 days and the composition of the wines produced in different flow rates of the medium was determined. Also suspended yeast cells in a free state from the same strain were used under similar conditions for the production of wine by batch fermentation. The composition of the wines produced by the entrapped cells in the continuous process in the different flow rates of the medium was similar. The maximum productivity of ethanol and the maximum daily production of wine achieved during the continuous process were 3 - 4 times higher than those achieved during the batch process. The composition of the wines produced from the two different processes was similar. In the continuous fermentation the concentrations of higher alcohols were at lower level while the concentrations of volatile esters were at higher level compared to batch fermentations.