Spearheaded by recently appointed chief executive and TWE architect, Michael Clarke, Treasury Wine Estates (TWE) is shaking the foundations of the traditional wine industry. They’ve recently made great strides in producing low-alcohol wines through NOLO (No Alcohol, Low Alcohol) wines. In fact, consumer preferences are changing – people are looking for more health-conscious alternatives, from beverages to snacks. TWE’s innovative de-alcoholisation process removes alcohol yet retains quality wines, and with them, the intoxicating effects of alcohol.
Dr. Hannah Ford, a sensory analyst specializing in wine, pointed out an emerging trend with consumers. More of us are becoming sober-curious and looking to moderate our alcohol consumption. She added that this change is leading bigger producers to legitimize the NOLO movement. “Social factors, habits, self-identity, emotional responses and product tangibility” all play a role in this transformation in consumer behavior.
TWE’s Commitment to Quality and Innovation
TWE has a long history with low-alcohol wines, having released its first product back in 1993. The company has identified a gap in the market for de-alcoholisation credits to open up a cleaner, more delicious wine experience. To take further control of production, especially as demand grew, TWE recently brought the de-alcoholisation process in-house by opening a new facility.
The company has put millions of dollars into specialized equipment intended to streamline this process. This includes their patent-pending technology that helps keep the heart and soul of the wine intact while gently removing alcohol. The difficulty comes from the fact that wine aroma starts with the first molecule to disappear in the process of de-alcoholisation.
“The first thing to leave a wine when you take it through the process is the aroma,” – Kerrin Petty
Finally, Ford realizes that with bigger brands moving into the NOLO space comes more competition. “We do expect to see a bit of market saturation with the bigger brands,” she stated. In turn, NOLO consumers—more willing to experiment with NOLO wines tied to brands they trust.
The Challenges of De-Alcoholisation
The de-alcoholisation process is the result of a very complex series of imperceptible transformations, and it’s all about focus and detail. Taking alcohol out is only the first step. Reducing sulfur usage is important, but we don’t want the wine’s mouthfeel, aroma, or visual qualities to be the least bit objectionable. Petty underscored how aroma is instrumental in creating an initial consumer impression of quality— even before a product is tasted.
“How you then capture that and put it back into the wine — so that when the consumer tastes the wine, the first thing they do is smell it — starts to give you that perception of quality before they put it in their mouth,” – Kerrin Petty.
This complicated procedure is meant to give consumers a fulfilling experience similar to their revered wines from other providers. Ford underscored that there’s a burgeoning demand for NOLO products. Whether these offerings actually go far enough to address consumers’ needs in a holistic way still remains up in the air.
The Growing NOLO Landscape
TWE is preparing to explore the blossoming category of low-alcohol wines. At the same time, the NOLO market is already abuzz with a cacophony of smaller‐scale winemakers who have developed compelling, innovative products. According to Ford, these smaller producers have set the stage for bigger brands to come and play in this space.
In addition, the global trend toward sustainability and health-conscious consumption continues to play a major role in the wine industry’s evolution. Ford is optimistic that once consumer preferences change, the larger winemakers will quickly enter the NOLO wine trend. We know they want to meet these emerging demands.
“They have the potential benefit in that they have a loyal following or trust,” – Hannah Ford.
