The national alcohol industry is contracting, but Sugarfield Spirits in Gonzales is still finding ways to grow.
Founder Thomas Soltau tells Ascension Business Report that the broader spirits market has entered a difficult stretch, with many distilleries across the country struggling to stay afloat.
“I think something like 25% of distilleries have closed in the past 18 months,” Soltau says. “Even big places like Jim Beam are furloughing equipment.”
But Sugarfield, which opened to the public in early 2020, has largely bucked those trends.
“We’re definitely still in a growth phase,” Soltau says. “Compared to where the rest of the country is with alcohol, where it’s been contracting, the fact that we’re growing at all I think is a huge positive.”
Soltau attributes the national slowdown in part to shifting consumer habits, particularly among younger generations that are drinking less. What’s more, THC beverages are increasingly competing with traditional alcohol consumption. The rise of GLP-1 weight-loss drugs could also be a factor, as such medications have been shown to curb alcohol cravings.
Despite those headwinds, Sugarfield’s tasting room continues to perform well, and the distillery has expanded distribution of its cider, mead and wine products over the past year.
Sugarfield is also investing heavily in production, having recently purchased a new bottling line that significantly increases its production capacity.
“We’re doing more and more private-label stuff for various businesses,” Soltau says. “I’ve probably taken on five contract bottling clients in the past six months. We’re super stoked about that.”
Sugarfield has also grown its physical presence in recent months. Last summer, the distillery opened a new warehouse across the street from its original production facility, bringing its total footprint to nearly 14,000 square feet.
“I now have three different buildings essentially on the same property,” Soltau says.
A practicing neonatologist at Our Lady of the Lake, Soltau says his background in chemistry and chemical engineering helped spark his interest in distilling years ago.
Today, he says Sugarfield’s biggest differentiator is its emphasis on local ingredients. The distillery’s rum, for example, is produced using locally sourced raw cane sugar.
“I want to make as good a product as they’re making in the Caribbean but put a unique Louisiana spin on it,” Soltau says.
Soltau credits Ascension Parish officials for helping the business grow.
“It’s a tremendously fast-growing parish, but it’s still very relational and very supportive. … I think this is a great business environment,” he says.
