Treasury Wine Estates creates NOLO wine range
Penfolds owner Treasury Wine Estates Ltd (ASX: TWE) has unveiled a A$15 million no and low-alcohol (NOLO) wine production facility in South Australia's Barossa Valley as it pivots toward a younger, health-focused consumer base.
The purpose-built facility features state-of-the-art de-alcoholisation technology developed in-house to retain the aroma, body, and texture of wine, addressing a common drawback of conventional NOLO production.
Two years in development, the site is now producing a new generation of low-alcohol offerings under brands such as Squealing Pig and Pepperjack.
The company will launch its new Sorbet brand in October, featuring blends of traditional varietals such as Prosecco, Rosé, Sauvignon Blanc and Shiraz with fruit infusions including mango, lemon and passionfruit.
With an alcohol content of 8%, Sorbet will be distributed through Endeavour Group’s Dan Murphy’s and BWS outlets.
“Flavour has historically been a barrier for wine drinkers exploring a no or low alcohol alternative – this technology has helped us solve the flavour puzzle, and it’s had outstanding feedback from consumers so far,” said TWE general manager of sales and marketing Sarah Parkes.
“With award-winning low and no alcohol wines already under our belt, we’re looking forward to sharing this next generation of great-tasting wines with consumers from next month.”
The move comes amid a global downturn in alcohol consumption and an oversupply crisis in the red wine market. According to International Wine & Spirits Research, NOLO wine is projected to grow by US$4 billion across 10 major markets by 2028, with per capita alcohol intake now 20% lower than in 2000.
In Australia, an estimated 330 million litres of red wine remain unsold. On Monday, De Bortoli Wines director Darren De Bortoli described the market situation as a “disaster”, noting his family had begun removing vines in the Riverina and Rutherglen regions.
Jonathan Jackson, 12th June 2025
