The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Treasury Wine Estates has opened a new in-house facility, backed by an AUD 15m (approx. $9.8m) investment, dedicated to ‘low and no’ alcohol wine production in the Barossa Valley, South Australia.

The new facility bolsters the technology credentials of the premium wine group’s South Australian site following its AUD 165 million (approx. $108 million) luxury winemaking expansion in 2022.

Unveiled yesterday (10 June 2025) after a two-year development process, the new facility features modern dealcoholisation technology, complemented by ‘world-first’ patent-pending processes for treating the aromatic component of wine that locks in flavour.

Customised, exclusive equipment is included alongside proprietary processes that delicately process the wine’s extracted essence as part of the dealcoholisation process. This allows winemakers to protect the components responsible for the wine’s flavour and fragrance.

According to Treasury, the system has been designed to overcome common challenges with existing processes for removing alcohol from wine that change its chemistry and impact richness, body and mouthfeel.

The facility will produce low and no alcohol wines for brands in the group’s 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.

A new-to-market innovation in the ‘low’ arena, Sorbet – which blends traditional varietals like Prosecco, Rosé, Sauvignon Blanc and Shiraz with fruit and berry flavours such as passionfruit, mango and lemon, at a lower 8% ABV – will join these established global brands. It will be available from October 2025 in partnership with Endeavour Group.

Leigh Firkin, head of commercial wine for Endeavour Group, said: “The new Sorbet range is a high-quality, diversified selection of lower-alcohol wine that responds to consumers wanting refreshment in their drink”.

“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 IWSR forecasts a 5% compound annual growth rate for the low and no alcohol wine market between 2024 and 2028. Data shows that 50% of wine drinkers are reducing their alcohol intake, but taste remains the biggest barrier to purchases of low-ABV wine varieties.

Treasury’s winemaker Toby Barlow said that bringing the dealcoholisation process in-house will improve the quality of the group’s low and no alcohol wines, giving consumers more choice while reflecting the character of the grape varietals.

“The complex interaction of aromas and flavours that reflect people and place is part of the joy of wine,” Barlow commented. “Blending our winemaking credentials with customised technology helps us create great-tasting wine that has less alcohol, or none at all. We’re creating products and consumer experiences that we know wine lovers all over the world are looking for.”