Treasury Wine Estates (TWE) has officially launched a new winemaking production facility in South Australia’s Barossa Valley, dedicated to the growing market for low- and no-alcohol wines. The A$15 million (US$9.77 million) investment marks a strategic step by the Australian wine company to innovate within an evolving consumer landscape.
Developed over a two-year period, the facility is equipped with advanced dealcoholisation technology and proprietary processes designed to retain the aromatic and flavour profiles of wine. According to a company statement, these “patent-pending” techniques address a major challenge in the low-alcohol segment — preserving taste integrity.
“Flavour has historically been a barrier for wine drinkers exploring a no or low alcohol alternative,” said Sarah Parkes, general manager of sales and marketing for TWE’s global premium division. “This technology has helped us solve the flavour puzzle, and it’s had outstanding feedback from consumers so far.”
The new site will support production across TWE’s global brand portfolio, including well-known names such as Squealing Pig, Pepperjack, Matua, 19 Crimes, Lindeman’s, and Wolf Blass.
Kerrin Petty, chief supply and sustainability officer at TWE, emphasized the broader strategic vision behind the investment. “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.
Coinciding with the facility’s opening, TWE also unveiled a new lower-alcohol wine range, Sorbet. The 8% ABV range blends popular wine styles — including Prosecco, Rosé, Sauvignon Blanc, and Shiraz — with fruit and berry flavours such as passionfruit, mango, and lemon. Sorbet is set to launch in Australia in October through a partnership with Endeavour Group.
TWE’s engagement in the low-alcohol segment dates back to 1993 with the launch of its Seppelt range. The company continues to expand its presence in this category in response to shifting consumer preferences.
The unveiling of the Barossa Valley facility comes amid broader corporate restructuring. In August last year, TWE announced plans to consolidate its premium brands under a single Global Premium Brands (GPB) division, merging its Treasury Premium Brands (TPB) and Treasury Americas (TBA) units. The transition is expected to be completed by July.
Despite these advancements, the company recently adjusted its financial guidance. TWE now expects earnings before interest, tax, and SGARA (EBITS) for the fiscal year ending 30 June to be approximately A$770 million, down from a previously revised forecast of around A$780 million, citing ongoing pressure in the U.S. market.
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