NSW winery dealcoholisation facility producing lower-alcohol wine, stainless steel equipment
on July 20, 2026

NSW Dealcoholisation Project Points to New Capacity for Lower-Strength Wine

Fresh wine-industry reports this week point in the same direction: producers are looking for new ways to serve drinkers while the traditional wine market works through pressure on demand and pricing.

About Regional reported on July 19 that Freeman Vineyards near Young received a $2 million NSW Government grant to build what the outlet described as the state’s first wine dealcoholisation facility. The report said the project will add a permanent bottling line and create an end-to-end production chain from vineyard to finished bottle.

According to About Regional, Dr Brian Freeman said lower-strength wine demand creates an opening for producers who can protect aroma and flavor while removing some or all of the alcohol. The same report said the Young facility will use vacuum distillation, a process that heats wine under reduced pressure so alcohol evaporates at a lower temperature, between 25 and 30 degrees Celsius.

The regional investment arrives while the broader wine trade continues to face demand issues. Vino Joy News reported on July 20 that Treasury Wine Estates suspended new orders for Penfolds Bin 407 in China for one quarter, from July 1 through the end of September. Vino Joy attributed the move to heavy inventories, falling wholesale prices and pressure on distributors, based on distributor interviews and a company confirmation.

For drinkers watching the alcohol-removed category, the Freeman project matters because it addresses a production bottleneck. About Regional reported that wineries wanting to make no and low-alcohol wines have often had to send bulk wine interstate for alcohol removal. The outlet also reported that the project could serve wineries across NSW and the ACT. Local dealcoholisation capacity could give smaller producers a closer path into the category.

For a deeper look at how the category works, read Solubrae’s guide to what alcohol-removed wine is and why it can still taste like wine.