Treasury Wine Estates unveils advanced dealcoholisation plant in Barossa Valley to boost low and no alcohol wine production

Treasury Wine Estates has opened a new A$15 million dealcoholisation facility in the Barossa Valley, South Australia, aiming to expand its production of low- and no-alcohol wines. The plant, which took more than two years to develop, features advanced technology designed to remove alcohol from wine while preserving the delicate aromas and flavors that are often lost during the process. The company says this investment will support both established and emerging brands in its global portfolio, including Squealing Pig, Pepperjack, Matua, 19 Crimes, Lindeman’s, and Wolf Blass.

The new facility uses proprietary processes and patent-pending equipment to address a key challenge in the low- and no-alcohol wine sector: maintaining the taste and complexity that consumers expect from traditional wines. Kerrin Petty, chief supply and sustainability officer at Treasury Wine Estates, said the technology represents a significant step forward for the company’s innovation and sustainability efforts in the Barossa Valley, a region where TWE has been making wine for over a century.

Group winemaker Toby Barker explained that combining winemaking expertise with customized technology allows TWE to create wines with less or no alcohol without sacrificing quality. He emphasized that capturing the complex interaction of aromas and flavors is essential to delivering wines that reflect their origin and craftsmanship.

In addition to supporting existing brands, the facility will also enable the launch of new products. One of these is Sorbet, an 8% ABV wine range set to debut in October through a partnership with Endeavour Group, which operates major Australian retailers Dan Murphy’s and BWS. The Sorbet line will include Prosecco, Rosé, Sauvignon Blanc, and Shiraz varieties infused with flavors such as passionfruit, mango, and lemon. Leigh Firkin, head of commercial wine at Endeavour Group, said the Sorbet range offers consumers a high-quality alternative for those seeking refreshment with lower alcohol content. He noted that consumers expect artisanal quality in lower-alcohol wines just as they do in full-strength versions.

Market research from IWSR indicates that the low- and no-alcohol wine sector is expected to grow at a compound annual rate of about 5% between 2024 and 2028. The data shows that around half of wine consumers are actively reducing their alcohol intake. However, taste remains a significant barrier for many people considering low- or no-alcohol options.

Sarah Parkes, general manager of global premium sales and marketing at TWE, acknowledged that flavor has historically been a challenge for low- and no-alcohol wines. She said the new technology has helped overcome this issue and has received positive feedback from consumers during testing. With several award-winning low- and no-alcohol wines already on the market, TWE plans to introduce its next generation of products starting next month.

The opening of this facility marks a strategic move by Treasury Wine Estates to meet changing consumer preferences while maintaining its reputation for quality winemaking. The company’s investment in advanced dealcoholisation technology positions it to lead in a growing segment of the wine industry as more consumers seek alternatives with less or no alcohol.