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South Australia’s winemakers will be front and centre of the emerging no and low alcohol (NOLO) wine market in Australia and the world, with the establishment of a world-first trial scale facility in Adelaide.

The SA Government has invested $1.98 million in the facility at the University of Adelaide, with the centrepiece a machine which will allow South Australian winemakers to trial NOLO wine using as little as 150 litres of wine.

Commercial-scale equipment, which has traditionally been used to develop new wine products, requires 10,000 litres.

Through the facility, South Australian wine businesses will be able to access equipment and expertise to develop new high-quality NOLO wine products at a subsidised cost, creating the opportunity to trial and refine new wine products in a low-risk environment.

Also available are canning and bottling facilities, so successful trial products can be packaged and used for consumer or trade samples, market research and export samples.

The global NOLO market was valued at $1.58 billion in 2020 and is growing rapidly. This represents a strong opportunity for the South Australian wine industry, which is working to overcome the threat of oversupply and the loss of the China market.

“The State Government know the value of our wine industry and we are supporting this vital industry to continue to innovate and diversify,” SA Minister for Primary Industries and Regional Development Clare Scriven said.

“We’ve made a significant investment to support industry growth and development through $1.98 million to establish an Australian first trial-scale NOLO wine research facility at the University of Adelaide.

“In time, this could lead to a skilled, specialist workforce and allow the industry to capitalise on significant market opportunities available.”

Australian wine currently has 5% of the global NOLO market share, but only 3% of the value, which underlines the importance of enhancing our global standing through improvements in sensory perceptions of flavour, texture and aroma in NOLO wines.

Many wine businesses are looking to diversify their product offering into new and existing markets to build resilience.

Treasury Wine Estates head of R&D Iain Jones said that the company was aware of changing consumer preferences toward no and lower alcohol differentiated products.

“The upward trend of responsible consumption of alcohol highlights the importance for our industry to develop leading NOLO technology to deliver low and no alcohol products that taste great and contribute the same sense of occasion as a traditional wine,” Jones said.

“This new facility will fast-track the development of new products, grow the choice and quality of NOLO wines for consumers and uphold the quality reputation of Australian wine in the global marketplace.”

The NOLO project is a partnership between the Department of Primary Industries and Regions, the University of Adelaide and the Australian Wine Research Institute. The facility is open to wine businesses now.

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