TWE opens $15m 'low and no' alcohol winemaking facility in the Barossa Valley

Treasury Wine Estates (TWE) has opened a new $15 million in-house facility dedicated to ‘low and no’ alcohol wine production in the Barossa Valley.

Two years in the making, the new facility uses new technology and processes that have been designed to overcome flavour and aroma challenges previously associated with ‘low and no’ alcohol wine.

The facility features state-of-the-art dealcoholisation technology, complemented by patent-pending processes for treating the aromatic component of wine that locks in flavour. Using customised equipment alongside proprietary processes allows the facility to 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.

Treasury Wine Estates Chief Supply and Sustainability Officer Kerrin Petty said: “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.”

The facility is designed to produce the next generation of low- and no-alcohol wines for 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. It will also be used to launch a new brand, 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%. Sorbet will be available from October 2025 in partnership with Endeavour Group.

Research from global beverage alcohol data and intelligence, IWSR, forecasts a 5% compound annual growth rate for the no- and low-alcohol wine market between 2024 and 2028. Data shows that 50% of wine drinkers are reducing their alcohol intake, but taste continues to be 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. The opening of this facility, re-affirms the winemaker’s commitment to innovation in this category.

TWE Group Winemaker Toby Barlow said bringing the de-alcoholisation process in-house will improve the quality of no- and low-alcohol wines. “The complex interaction of aromas and flavours that reflect people and place is part of the joy of wine. Blending our winemaking credentials with customised technology helps us create great-tasting wine that has less alcohol, or none at all.”

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. 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.”

Top image caption: TWE Barossa Valley Mick Hage, Wine Process Technologist, and Toby Barlow, Group Winemaker.