The wine industry is intensifying efforts to capture the growing demand for mid- and low-alcohol beverages, a segment long dominated by beer. Treasury Wine Estates, Australia’s largest wine producer, has invested $15 million in specialized equipment at its Barossa Valley facility to refine its low-alcohol winemaking process. Later this year, the company will debut Sorbet, a new brand featuring wines with an alcohol content of 9%, significantly lower than traditional varieties.
Despite optimism, industry experts acknowledge wine’s slow progress in this market. While low-alcohol options account for 30% of beer sales in Australia, they represent just 3% of wine sales. Global wine consumption has declined, with surveys indicating nearly half of drinkers are cutting back, leading to vineyard reductions in Australia and France due to oversupply, particularly in budget segments.
Sarah Parkes, Treasury Wine’s general manager of sales and marketing, expressed confidence in the company’s breakthrough in taste and quality. “Beer has had a head start, but we see substantial growth potential,” she said. The new Sorbet line—including exotic flavors like Mango Sauvignon Blanc and Wild Berry Shiraz—will retail at $16 per bottle and be sold exclusively through Dan Murphy’s and BWS.
Winemaker Toby Barlow emphasized technological advancements in de-alcoholization, preserving the richness and varietal character of the wines. Treasury Wine is also expanding low-alcohol versions of established brands like Pepperjack, though its premium Penfolds range remains unaffected.
The broader industry is taking note. Australian Vintage, owner of McGuigan and Tempus Two, reported a 14% annual growth rate for its alcohol-free McGuigan Zero brand in the UK. CEO Tom Dusseldorp highlighted a dual strategy, pairing zero-alcohol options with smaller 187ml bottles of full-strength wine under the Poco Vino brand to cater to moderation trends.
Treasury Wine’s push coincides with leadership changes, as former Lion CEO Sam Fischer prepares to succeed Tim Ford in September. Analysts, including Jarden’s Ben Gilbert, suggest the company may reconsider a Penfolds demerger if its share price fails to reflect the brand’s profitability, which contributes 60% of group earnings.
Global research firm IWSR projects the low- and no-alcohol wine market could grow by 5% annually through 2028, though taste remains a key hurdle. With innovation accelerating, the industry aims to mirror beer’s success in meeting evolving consumer preferences.
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