Treasury Wine Estates (TWE), one of the world’s leading wine companies, has officially opened a AUD 15 million (EUR 8.5 million) state-of-the-art facility in South Australia’s Barossa Valley, dedicated exclusively to the production of low and no alcohol wines.
This major investment signals TWE’s long-term commitment to innovation and reinforces its pioneering position in the fast-growing global no/low alcohol wine category.
This new dealcoholisation centre, two years in development, introduces world-first, patent-pending technology that preserves the aroma and flavour compounds typically lost in traditional alcohol removal processes. The result: full-flavoured, high-quality wines that retain the complexity, mouthfeel, and varietal character consumers expect—just with little to no alcohol content.
The Barossa facility is now producing wines across several brands in TWE’s global portfolio, including Squealing Pig and Pepperjack, and complements earlier entries like Matua, Lindeman’s, 19 Crimes, and Wolf Blass. These brands will soon be joined by Sorbet, a new line of 8% ABV wines launching in October 2025 in partnership with Endeavour Group. Sorbet is set to redefine the lower-alcohol wine category with flavour-forward blends of Prosecco, Rosé, Sauvignon Blanc, and Shiraz, infused with mango, lemon, and passionfruit notes.
Kerrin Petty, Chief Supply and Sustainability Officer at TWE, emphasized the strategic importance of the project:
“This world-leading facility cements our position as a global pioneer in winemaking. Our new process is a game-changer, enhancing quality while aligning with consumer demand for more mindful drinking options.”
The facility also builds on TWE’s broader AUD 165 million (EUR 93 million) luxury winemaking expansion announced in 2022, further establishing Barossa Valley as a hub of technical excellence and innovation in global wine production. In doing so, it supports South Australia’s reputation as one of the world’s premier wine regions.
According to Toby Barlow, TWE’s Group Winemaker, bringing the de-alcoholisation process in-house means greater control over quality:
“The joy of wine comes from the interplay of aroma, flavour, and terroir. By blending our winemaking expertise with cutting-edge technology, we’re delivering wines that meet modern lifestyle preferences without sacrificing character.”
Consumer insight supports the growth of this category. IWSR research forecasts a 5% compound annual growth rate (CAGR) for low and no alcohol wines through 2028. Additionally, nearly 50% of wine drinkers report reducing their alcohol intake—yet flavour remains the top obstacle. TWE’s new facility directly addresses that challenge, focusing on flavour integrity.
Leigh Firkin, Head of Commercial Wine at Endeavour Group, added:
“The new Sorbet range is a modern response to a growing segment of drinkers seeking lighter, fresher wine options. It blends the artisanal appeal of traditional winemaking with exciting new taste profiles.”
For TWE, the investment is about more than innovation—it’s about setting a benchmark for sustainability, consumer choice, and flavour-forward alternatives. With a legacy rooted in premium winemaking and a future focused on diversification, Treasury Wine Estates is shaping the evolution of global wine consumption.
Source: TWE