The New South Wales government has allocated AU$2 million to establish the state’s first dedicated wine dealcoholisation facility at Freeman Vineyards, a family-owned winery. The funding, provided through the Agriculture Industries Innovation and Growth Program, will support the construction of a specialised plant designed to produce, dealcoholise, and bottle wine at a single site.

Previously, wineries in New South Wales seeking to create low- or no-alcohol wines have had to transport their products interstate for alcohol removal, incurring additional costs and logistical complexities. The introduction of this local facility is expected to streamline production processes, enhance operational efficiency, and retain more of the value chain within regional NSW.

Dr Brian Freeman, owner of Freeman Vineyards, described the investment as a significant opportunity for the state’s wine industry. He highlighted that the new facility would help sustain existing vineyards and provide a foundation for future growth. “It’s going to be another market that will allow us to maintain more of our vineyards, and it’s also going to, in the future, allow for expansion,” Dr Freeman said.

The move reflects shifting consumer preferences, with rising interest in premium low- and no-alcohol beverages. Dr Freeman noted demographic changes influencing demand, with younger consumers more likely to abstain completely from alcohol and older generations reducing their intake. He expressed confidence that the facility would enable the production of high-quality non-alcoholic wines to meet these evolving tastes.

The establishment of the wine dealcoholisation facility represents a strategic investment aimed at supporting innovation and growth within New South Wales’ agricultural and wine sectors, potentially positioning the region as a leader in the emerging market for non-alcoholic wines.