Treasury Wine Estates (TWE) has unveiled a $15 million low- and no-alcohol (LoNo) wine production facility in South Australia’s Barossa Valley, marking a major step in the company’s push to lift quality and scale in the fast-growing NoLo category.
More than two years in the making, the facility houses customised dealcoholisation equipment and world-first, patent-pending processes designed to preserve the aromatic and flavour components of wine.
TWE said the technology allows winemakers to overcome long-standing challenges associated with alcohol removal, which can alter wine chemistry and compromise richness, body and mouthfeel.
wine process technologist, Mick Hage.
TWE Group Winemaker, Toby Barlow, said bringing dealcoholisation in-house would lift both quality and consistency.
“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,” he said.
The launch comes as consumer moderation reshapes alcohol consumption patterns globally. According to TWE’s report, Toasting the Future: Pioneering flavour in no-alcohol, low-alcohol, and mid-strength wines, the NoLo category is “more than a passing trend”, with half of the world’s regular wine drinkers moderating their alcohol intake and the global NoLo market forecast to grow strongly over the coming decade.
IWSR research forecasts a five per cent compound annual growth rate for the Australian NoLo wine market between 2024 and 2028. While demand is rising, Toasting the Future highlights flavour as the critical barrier to wider adoption, placing pressure on producers to innovate beyond simply removing alcohol.
IWSR Head of No- and Low-Alcohol Insights, Susie Goldspink, said the category is entering a more demanding phase.
“Consumers want products that deliver on taste, complexity, and overall drinking experience. This evolution is pushing the category further, prompting brands to innovate and raise the bar in terms of quality and variety,” she said.
sustainability officer, Kerrin Petty.
TWE chief Supply and Sustainability officer, Kerrin Petty, said the new facility cements the company’s leadership position in the segment.
“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,” Petty said.
The Barossa facility forms part of a broader $15 million investment outlined in Toasting the Future, which details TWE’s focus on retaining aroma, flavour and mouthfeel through advanced vacuum distillation and essence capture processes. The report notes that while rudimentary dealcoholisation has existed for centuries, modern techniques are now enabling a new generation of higher-quality NoLo wines.
TWE was an early entrant into the category, launching Seppelt low-alcohol wines in 1993. The new facility will support production of low- and no-alcohol wines across its global portfolio, including Squealing Pig and Pepperjack, alongside existing NoLo offerings under brands such as Matua, 19 Crimes, Lindeman’s and Wolf Blass.
in October 2025.
The company has also announced a new lower-alcohol wine brand, Sorbet, developed in partnership with Endeavour Group, that launched in October 2025. Sorbet blends classic varietals including Prosecco, Rosé, Sauvignon Blanc and Shiraz with fruit flavours, at a reduced alcohol level of 8 per cent ABV.
In 2022, NoLo products accounted for five of Endeavour Group’s top 10 fastest-growing sub-categories.
Endeavour Group head of Commercial Wine, Leigh Firkin, said consumers are increasingly seeking lighter options without compromising wine’s core attributes.
“For consumers, the artisanal nature of wine needs to be reflected in lower-alcohol alternatives as much as full-strength versions,” Firkin said.
With Toasting the Future pointing to long-term structural growth in NoLo wine and rising consumer expectations around flavour, Treasury Wine Estates said the Barossa investment positions it to meet demand for premium lower-alcohol options while supporting broader moderation and wellbeing trends across global wine markets.
