Treasury Wine Estates Ltd (ASX: TWE) is expanding its footprint in the no and low-alcohol (NOLO) wine segment with the launch of a A$15 million production facility in South Australia’s Barossa Valley, aiming to capture demand from health-conscious and younger consumers.
The facility incorporates proprietary de-alcoholisation technology that preserves the structure and sensory qualities of traditional wine—components often lost in conventional NOLO processing. Now operational, the site is supplying next-generation products for key TWE brands including Squealing Pig and Pepperjack.
TWE will introduce a new brand, Sorbet, in October. The range pairs classic varietals such as Shiraz, Prosecco, Rosé and Sauvignon Blanc with fruit infusions like passionfruit, mango and lemon. With an 8% alcohol content, the products will be rolled out in partnership with Endeavour Group’s Dan Murphy’s and BWS retail networks.
TWE general manager of sales and marketing Sarah Parkes said the technology offers a solution to a longstanding challenge in 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,” she said.
The global wine industry is facing declining consumption, with per capita alcohol intake down 20% since 2000. Market research from International Wine & Spirits Research forecasts an additional US$4 billion in growth for the NOLO wine category by 2028.
Domestically, Australian winemakers are contending with a red wine surplus of around 330 million litres. Darren De Bortoli of De Bortoli Wines this week described conditions as a “disaster”, citing vine removals in the Riverina and Rutherglen due to falling demand.
The company is 0.31% down this morning, trading at $8.165.