Treasury Wine Estates (TWE) and the Australian Wine Research Institute have released an industry-first research report exploring the future of no-alcohol, low-alcohol and mid-strength (NoLo) wines.

The launch of the ‘Toasting the Future’ report coincides with TWE releasing its new Sorbet range, which delivers fruit-flavoured wines and 9% ABV. It includes Raspberry Rosé, Lemon Prosecco, Mango Sauvignon Blanc, Passionfruit Pinot Gris, Strawberry Pinot Noir and Wild Berry Shiraz.

The change in consumption habits is driving trends like zebra striping, damp drinking, tapering and the concept of ‘good hosting’, where consumers are picking up full-strength and NoLo wines in the same purchase to ensure they’re being inclusive when entertaining during the festive season.

TWE said NoLo is more than a passing trend, with half of the world’s regular wine drinkers moderating their consumption. In the world’s largest wine market, the US, more than 36 million new low-alcohol consumers entered the market between 2022 and 2024. This shifting consumption behaviour is creating long-term opportunity for beverage companies, with the global NoLo market expected to double from 2022 levels in the next two years.

The report also explores the technical challenges of making great-tasting NoLo wines, and how TWE’s proprietary dealcoholisation process is helping winemakers retain a wine’s flavour and mouthfeel while lowering alcohol levels. With almost 2 centuries of winemaking heritage and 40 years of innovation in NoLo, TWE has developed a new generation of lower-in-alcohol wines that are leading the category in flavour and quality.

Investing in NoLo wine for the long term

Highlighting a commitment to innovation and the long-term future of South Australian wine and the NoLo category, TWE recently unveiled an $15 million in-house NoLo wine production facility, in the Barossa Valley. Among the wines the facility is producing is TWE’s new Sorbet range.

Chief Supply & Sustainability Officer Kerrin Petty (above right) said: “The way consumers are drinking wine is changing – the increasing appetite for NoLo wines is broadening the overall wine category, creating dual buying and consumption habits.

“Our award-winning winemakers are making the most of our state-of-the-art technology to create great-tasting wines that still have the varietal characteristics and ‘essence’ of their full-strength cousins.”

Endeavour Group Head of Merchandise – Commercial Wine Leigh Firkin said: “Customers aren’t browsing the NoLo category out of curiosity anymore – they’re going in with intent and seeking quality, flavour and real varietal character.

“As we head into the festive season, moderation isn’t about abstaining; it’s about flexibility. Customers are planning mixed baskets that include full-strength, low-strength and no-alcohol wines in the same shop, and we expect this blended consumption pattern to accelerate into 2026.

“Our data shows NoLo wine is one of the fastest-growing segments across our stores, outpacing full-strength wine in both penetration and repeat purchase. This is a direct result of the industry investing in taste, technology and innovation.

“We’ve expanded our ranging to meet that demand – particularly in low-strength styles, where we’re seeing some of the highest conversion from traditional wine drinkers.”

Innovating in NoLo – before it was NoLo

TWE has a long history of pioneering lower ABV wine innovation. In 1992, Seppelt released a reduced-alcohol Rhine Riesling and Chardonnay crafting using technology developed by Australia’s national science agency, the Commonwealth Scientific and Industrial Research Organisation.

Seppelt’s Chief Winemaker at the time, Ian ‘Macka’ McKenzie, said the revolutionary approach took his winemaking team five years to perfect.

Reviewing the reduced alcohol Chardonnay when it was released in October 1992, renowned Australian wine writer and critic James Halliday said he couldn’t tell it was lower ABV at 6%, and estimated that nine out of 10 consumers would never guess: “The most obvious feature of the wine…is its abundant aroma [with] masses of peachy Chardonnay varietal fruit and plenty of oak.”

Today, TWE’s winemaking teams are continuing the tradition of innovating in NoLo, with the new generation NoLo wines now available under TWE’s Squealing Pig, Pepperjack, and Sorbet brands.

Read the full ‘Toasting the Future’ report here.

TWE’s Sorbet range is available for purchase exclusively at Dan Murphy’s and BWS stores nationwide and retails
for $16 per bottle.