Treasury Wine Estates launches US$9.77M low- and no-alcohol wine facility in Australia
TWE invests in advanced dealcoholisation tech to enhance flavour in low-alcohol wines, while revising profit forecasts due to US market pressures.
AUSTRALIA – Treasury Wine Estates (TWE) has officially opened a new A$15 million (US$9.77 million) in-house production facility dedicated to low- and no-alcohol wines in South Australia’s Barossa Valley.
The facility, developed over more than two years, incorporates state-of-the-art dealcoholisation technology and patent-pending processes designed to preserve the aromatic components of wine, locking in flavour.
Sarah Parkes, TWE’s General Manager of Sales and Marketing for the global premium division, noted that flavour has traditionally been a barrier for consumers exploring low- or no-alcohol wines.
“This technology has helped us solve the flavour puzzle, and it’s had outstanding feedback from consumers so far,” she said.
The new facility will produce low- and no-alcohol wines for TWE’s global portfolio, which includes well-known brands such as Squealing Pig, Pepperjack, Matua, 19 Crimes, Lindeman’s, and Wolf Blass.
Kerrin Petty, Chief Supply and Sustainability Officer, described the site as a hub of innovation, technology, and sustainability, reinforcing Barossa Valley’s century-long reputation for quality winemaking.
Concurrently, TWE has introduced Sorbet, a new lower-alcohol wine range with an 8% ABV. Sorbet blends varietals like Prosecco, Rosé, Sauvignon Blanc, and Shiraz with fruit and berry flavours including passionfruit, mango, and lemon.
The range will be available in Australia from October through a partnership with Endeavour Group.
Despite these innovations, TWE recently revised its full-year profit guidance downward to approximately US$770 million from an earlier forecast of US$780 million.
The company cited weaker consumer demand and economic uncertainty in the US as primary factors, particularly lower-than-expected premium portfolio shipments.
Declining performance in wine categories priced below US$15 and the lingering impact of tariffs introduced in 2018 have compounded market challenges.
TWE is concurrently consolidating its premium wine brands by merging Treasury Premium Brands and Treasury Americas into a new Global Premium Brands division, expected to complete by July 2025.
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