California, U.S.A.-based Tsar Nicoulai Caviar has purchased beleaguered caviar producer and sturgeon farmer Sterling Caviar, creating the largest caviar-producing company in the U.S.
Sterling Caviar entered receivership in April 2024, with creditors claiming the company owed them more than USD 23 million (EUR 22.2 million). The company was originally founded by Stolt-Nielsen in 1988 to raise white sturgeon at a farm in Elverta, California, before the company was purchased in 2020 by Eugene Fernandez for USD 6.2 million (EUR 5.9 million). Prior to Fernandez’s purchase, Stolt-Nielsen reported in its financial update ending 31 August 2020 that the caviar company lost USD 8.7 million (EUR 8.3 million).
Now, Tsar Nicoulai Caviar and its current owners – the Bolourchi family – report they have purchased the company and aim to leverage their expertise to revitalize its operations.
"This strategic acquisition of Sterling will not only allow us to compete on a scale with the larger caviar producers in Asia and Europe but also gives us the opportunity to showcase our unwavering commitment to sustainability and innovation on a global scale," Tsar Nicoulai Caviar President Ali Bolourchi said in a release.
Tsar Nicoulai Caviar was founded in 1984 by Mats and Daphne Engstrom, with the Bolourchi family taking over stewardship of the business in 2014. Since taking over, the new owners said they have installed a new oxygen system for the tanks the company raises sturgeon in, installed solar panels at its facility, and began using aquaponics to grow organic butter lettuce and other produce from waste produced by the sturgeon.
The company recently celebrated its 40th anniversary – which included announcing an expansion to its farm by introducing 54 new recirculating aquaculture system (RAS) tanks for farming sturgeon.
“Designed with sustainability at the forefront, the tanks incorporate state-of-the-art systems for water filtration, waste reduction, and energy efficiency,” the company said. “The addition of these new tanks will enable Tsar Nicoulai to move to almost 100 percent water efficiency and will be the first outdoor RAS for sturgeon in the world, much like the original 30 tank pond system (which is still in use) was the first aquaponics system powered by sturgeon in the world.”
Tsar Nicoulai Caviar said it plans to apply the techniques it has used to be successful to Sterling, with a commitment to transparency and traceability for its caviar.
“The goal is to be the first caviar farm to achieve Aquaculture Stewardship Council certification, further solidifying its position as a leader in sustainable caviar production,” the company said.
The purchase is a new chapter for Sterling Caviar, which was the first company in the world to produce commercial quantities of caviar from tank-raised sturgeon.
"Since the ‘80s, these farms have been recognized for their leadership in ethical aquaculture, and now more than ever we remain dedicated to maintaining the delicate balance between the artistry of traditional caviar production and the science of sustainable practices,” Bolourchi said.
Tsar Nicoulai Caviar said it plans to bring back key personnel who were instrumental to Sterling Caviar’s success early on, including the company’s original general manager – who has been consulting with Tsar Nicoulai.
“This collaboration aims to foster a culture of continuous improvement and environmental stewardship, ensuring the health of the sturgeon population and the ecosystems they inhabit,” Tsar Nicoulai Caviar said.
Stolt-Nielsen, which originally owned Sterling, also operates Stolt Sea Farm – a land-based turbot- and sole-farming company. After Fernandez purchased the company in 2020, he told SeafoodSource he was confident he could turn the company around and make it the top caviar producer in the U.S. The company’s Royal Grade caviar would go on to win Product of the Year and the Gold Award in the seafood category at the Specialty Food Association’s sofi awards in 2022.
That year, Jeff Sedacca, who was then the CEO of Sterling Caviar, told SeafoodSource the company was on a course for growth and had great potential. Sedacca said at the time that the company was pursuing potential acquisitions in the U.S. and Canada, with a focus on aquaculture operations to increase the scale and diversity of the company’s offerings. The company was also considering plans to expand its operations in Elverta, California.
“We have a lot of property in Elverta, so we can do a pretty big expansion right on site,” Sedacca said at the time.
Despite the accolades and the plans to expand, the turnaround attempt apparently didn’t work as expected, and CaptialView Investment Partners and Hunger Street Partners – two companies that loaned USD 14 million (EUR 13.5 million) to Fernandez’s holding company Hyde Road Agricultural Associates for the purchase – requested that Sterling be put into receivership in January 2024.
In court filings made during the request, the company accused Hyde Road Agricultural Associates of mistreating the sturgeon.
“Ongoing financial issues have left the fish not having sufficient feed or aeration, meaning their survival is in jeopardy,” the creditors claimed.
Fernandez disputed the allegations that the company was mistreating the fish.
“I would never permit the company to do anything to harm the fish or any other assets of the company,” Fernandez wrote in his response in court. “I would only be harming myself.”
In addition to receivership, Sterling Caviar had to contend with multiple lawsuits, including one from a janitorial supply vendor, and a lawsuit from Stolt-Nielsen that claimed Hyde Road Agricultural Associates still owed it USD 1.2 million (EUR 1.1 million) from the sale of Sterling.
In the lawsuit, Hyde claimed Stolt misrepresented the value of the company during the sale process, failed to disclose a bacterial infection impacting its operations, and didn’t hand over company information. It also accused prior Sterling Caviar President David Shenson of purposely taking on strategies that put the business in a poor position.
"[Shenson] made every attempt possible to torpedo Hyde’s chances at success post-closing and was successful in that venture,” Hyde said in its complaint.
Regardless of its complicated past, Tsar Nicoulai Caviar said the purchase of Sterling Caviar will allow both companies to accentuate each other’s strengths.
“The aim is to enhance production while maintaining rigorous sustainability standards, ultimately reshaping perceptions and standards in the industry,” Tsar Nicoulai Caviar said. “With this acquisition, these two companies are poised to lead the way in responsible aquaculture, ensuring that the legacy of both brands endures for generations to come.”
