Posted by Solubrae
on July 20, 2026
New reports from Australia and China point to two pressures inside the wine trade: producers want more options for no and low-alcohol wine, while some traditional segments are dealing with soft demand and inventory pressure.
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 a 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 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 investment comes as parts of the broader wine trade face pressure. 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 pause to heavy inventories, falling wholesale prices, and distributor pressure, based on distributor interviews and company confirmation.
For wineries interested in alcohol-removed and lower-strength products, the Freeman project addresses a practical bottleneck. About Regional reported that wineries seeking to make no and low-alcohol wines often had to send bulk wine interstate for alcohol removal. A closer facility could give producers in NSW and the ACT a shorter route into the category.
For background on the category, read Solubrae's guide to what alcohol-removed wine is and why it can still taste like wine.
