AUSTRALIA | Treasury Wine Estates (TWE) has officially opened a new AUD 15 million in-house facility dedicated to ‘low and no’ alcohol wine production in the Barossa Valley.
The opening reaffirmed TWE’s leadership in the global wine category and its commitment to innovation. It also bolstered the technology credentials of the South Australian site following its AUD 165 million luxury winemaking expansion in 2022. It supports the state’s established reputation as one of the world’s premier wine regions.
More than two years in the making, the new facility features state-of-the-art dealcoholization technology, complemented by world-first, patent-pending processes for treating the aromatic component of wine that locks in flavour.
It houses customised, exclusive equipment alongside proprietary processes that delicately process the wine’s extracted essence as part of the dealcoholisation process, allowing winemakers to protect the components responsible for the wine’s flavour and fragrance.
The system has been designed to overcome challenges with existing processes for removing alcohol from wine, which alter its chemistry and impact richness, body, and ‘mouthfeel’.
“This world-leading facility cements our position as a global pioneer in winemaking. This state-of-the-art technology and proprietary process for de-alcoholisation is our latest step in building a hub of innovation, technology and sustainability in the Barossa Valley, where we’ve been crafting wine to delight consumers for more than a century,” said Treasury Wine Estates Chief Supply and Sustainability Officer Kerrin Petty.
The facility is producing the next generation of low- and no-alcohol wines for iconic brands in TWE’s global portfolio, including Squealing Pig and Pepperjack, which will complement other low- and no-alcohol offerings in the Matua, 19 Crimes, Lindeman’s, and Wolf Blass brands.
Joining these established global brands is the new-to-market Sorbet, which blends traditional varietals like Prosecco, Rosé, Sauvignon Blanc, and Shiraz with fruit and berry flavours such as passionfruit, mango and lemon, and a lower ABV of 8 percent. Sorbet will be available from October 2025 in partnership with Endeavour Group.
“The new Sorbet range is a high-quality, diversified selection of lower-alcohol wines that responds to consumers wanting refreshment in their drink,” said Head of Commercial Wine for Endeavour Group, Leigh Firkin.
“For consumers, the artisanal nature of wine needs to be reflected in lower-alcohol alternatives as much as full-strength versions – and that comes through with a fresh take on classic varietals in Sorbet.”
Research from the global authority on beverage alcohol data and intelligence, IWSR, forecasts a five percent compound annual growth rate for the no- and low-alcohol wine market between 2024 and 2028.
Data show that 50 per cent of wine drinkers are reducing their alcohol intake, but taste remains the biggest barrier to purchasing wine that’s lower in alcohol. TWE was an early pioneer in the no- and low-alcohol category, introducing a range of Seppelt low-alcohol wines in 1993.
TWE Group Winemaker Toby Barlow said that bringing the de-alcoholisation process in-house will improve the quality of no- and low-alcohol wines, giving consumers more choice while reflecting the character of the grape varietals.
Sarah Parkes, General Manager of Sales and Marketing for TWE’s global premium division, said the expansion of its no and low alcohol range reflected the growing popularity of the category.
“Flavour has historically been a barrier for wine drinkers exploring a no or low alcohol alternative – this technology has helped us solve the flavour puzzle, and it’s had outstanding feedback from consumers so far,” said Parkes.
“With award-winning low and no alcohol wines already under our belt, we’re looking forward to sharing this next generation of great-tasting wines with consumers from next month.”
