Eugene Fernandez told SeafoodSource in an interview on 30 October he had purchased Sterling Caviar for an undisclosed amount.
“We’ve acquired the assets, name brand, and we’re just doing the transitional period at this time,” he said.
Fernandez, the president of Hyde Road Agricultural Associates, which received a USD 14 million (EUR 12.9 million) loan to expand its caviar operations at the former Lazy Q Fish Ranch in Dixon, California, U.S.A. in April 2020, said he wants to significantly ramp up production and distribution of U.S.-sourced caviar in the domestic market. The acquisition of Sterling Caviar will accelerate that effort, Fernandez said.
“[Sterling] has got a great brand and product. They’re one of the largest producers of caviar in the country,” he said.
Sterling Caviar was established by Norwegian-based Stolt Sea Farm in 1988 to raise white sturgeon at a farm in Elverta, California, U.S.A. It has a capacity of producing up to 15 metric tons of caviar annually.
In its third-quarter financial update, released 8 October, Stolt announced its intention to sell Sterling Caviar, which it said accounted for USD 8.7 million (EUR 7.5 million) in losses, based on its estimated fair value less the costs of the sale process. The company generated USD 3.3 million (EUR 2.8 million) of revenue in the first three quarters of 2020, while racking up USD 11.6 million (EUR 10 million) in gross losses, which include operating expenses, depreciation, amortization, impairment of caviar assets, and administrative and general expenses.
Fernandez said he was confident he could turn around Sterling’s financial picture.
“It was managed successfully for many years, but in the last five years, they just mismanaged it,” he said. “With a new team, new employees, and guidance from outside people in the industry, we can take it back to its position as the number-one caviar producer in the United States.”
Last year, Sterling Caviar launched a new campaign under the company’s new president, David Shenson, which turned to Michelin-star chefs, social media, and consumers to educate them on the traditions of sustainable caviar farming, with the goal of gaining a larger market share of the 70 metric tons of caviar consumed annually in the U.S.
Sterling spokesperson Kate Muirhead told SeafoodSource the company’s goal was to get American chefs to distinguish U.S. caviar from cheaper Chinese imports, and to be able to charge accordingly.
Photo courtesy of Sterling Caviar
