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Highlights
- TWE launches $15M Barossa Valley NOLO wine facility
- New "Sorbet" wine range to debut in October
- Focus on health-conscious and younger drinkers
Treasury Wine Estates (ASX:TWE) has launched a new A$15 million production facility in South Australia’s Barossa Valley, underscoring its commitment to the rapidly growing no and low-alcohol (NOLO) wine segment. This development comes at a time when shifting consumer preferences, particularly among health-conscious and younger demographics, are reshaping the global wine market.
The newly operational site leverages proprietary de-alcoholisation technology designed to retain the structure and taste of traditional wine—a significant step forward in overcoming the long-standing challenge of flavour quality in NOLO wines. The production hub is already supporting TWE’s key brands, including Squealing Pig and Pepperjack, by rolling out refined NOLO offerings that meet evolving market demands.
Looking ahead, the company plans to debut a new brand, “Sorbet”, in October. This vibrant collection will combine classic varietals such as Shiraz, Prosecco, Rosé, and Sauvignon Blanc with fruit infusions like mango, passionfruit, and lemon. Each bottle will contain 8% alcohol, positioning it uniquely in the market. The launch aligns with the rising consumer interest in alternative wine experiences that balance taste and moderation.
As global wine consumption continues to decline—with alcohol intake dropping 20% per capita since 2000—the NOLO category has emerged as a beacon of growth. According to International Wine & Spirits Research, the segment could witness a further US$4 billion surge by 2028. Locally, the industry is grappling with a red wine surplus estimated at 330 million litres, exacerbated by waning demand and supply-chain disruptions.
TWE’s strategic expansion comes at a time when investors are increasingly attuned to companies adapting to shifting consumption patterns. In addition to its growth-oriented moves, TWE is part of Australia’s broader equity narrative, contributing to the dynamics of the ASX200 index.
This development may also be of interest to those following ASX dividend stocks, as companies innovating within evolving markets often aim for sustainable performance and shareholder value.
On the trading front, TWE shares slipped slightly by 0.31% to A$8.165 today, reflecting a minor dip amid broader market fluctuations.
As the NOLO category gains traction globally, TWE’s investment in advanced technology and brand diversification marks a forward-looking response to changing tastes, solidifying its role as a major player in the evolving wine landscape.
