Sterling Caviar acquisition opens new chapter for storied Sacramento County business
The sale of Sterling Caviar opens a new chapter for a storied Sacramento County business that struggled financially in recent years.
Its new owner — Tsar Nicoulai Caviar, which farms sturgeon in Wilton and has a headquarters in Concord — hopes that the recent acquisition can serve to elevate the industry’s profile in the U.S.
Sterling, which is based in Elverta, made history in the 1980s as the state’s first commercial farming operation for sturgeon, the fish that produce caviar. The original fish were sourced from the Sacramento River, and then replaced several years later after the company developed a breeding program.
Sterling grew over the years, and has supplied some of the country’s most acclaimed restaurants. In its 2020 fiscal year, according to court filings, the company sold 7.4 metric tons of caviar.
But Sterling also struggled financially, and spent most of this year in receivership.
The acquisition will serve to expand Tsar Nicoulai Caviar, another well-known name in the industry. But Ali Bolourchi, president and CEO of Tsar Nicoulai Caviar, also hopes the combined business can raise the profile of caviar and sturgeon.
“I think even caviar, to be honest with you, in America is a little bit in its infancy,” Bolourchi said.
He drew a comparison to the 1980s and 1990s, when sushi grew in popularity in the U.S. and consumers became more well-versed in it as a cuisine. Like then, he believes Americans are growing to understand better caviar and its different varieties.
Sacramento’s caviar and COVID connection
The Sacramento region has deep roots in the industry. The practice of farming sturgeon for caviar was developed here in the 1980s, and has become the predominant method of making caviar worldwide, Bolourchi said.
“Everybody owes the tip of the cap to Sacramento County,” he said.
Court filings suggest that Sterling Caviar struggled financially for several years, particularly during the COVID pandemic.
Eugene Fernandez, who at the time served as president of Sterling Caviar, wrote in filings that his company acquired Sterling in October of 2020. Because of the pandemic, California had imposed stay-at-home restrictions.
The company hired a CPA who specializes in corporate restructuring. Over the next two years, Fernandez wrote in the filings, many of the restaurants the company supplied closed their doors.
Around 90% of the company’s caviar, he wrote, is eaten at restaurants, parties and special events. Very little is consumed at home.
In July of 2023, the company was sued in Solano County Superior Court. One of its creditors — Minnesota-based BFSP LLC — claimed Sterling had fallen behind on loan payments.
The complaint was filed against 8077 Hyde Road Agricultural Holdings LLC. In court filings, Fernandez described that LLC as one of the entities that owns and operates the “Sterling Caviar” brand.
BFSP argued that day-to-day management of Sterling should be taken over by a receiver. In January, a Solano County judge agreed, and signed an order appointing one.
‘Craft that goes into producing it’
In September, the court approved the receiver’s request to execute a sale to Tsar Nicoulai Caviar’s parent company, Pacific Plaza Imports.
The acquisition closed in October, Bolourchi said. Sterling products, he said, will continue to be sold under their own, separate brand name.
Bolourchi said his company has plans to improve the carbon footprint at the Sterling sturgeon farms, an effort that includes energy conservation and solar power. It also means following what he described as a “nose-to-tail” ethos, and ensuring that no part of the sturgeon goes to waste.
“Almost all sturgeon farms think of sturgeon meat as an afterthought,” Bolourchi said.
People aren’t as familiar with sturgeon, and don’t know how to best prepare the fish. The company tries to guide customers, Bolourchi said. Smoked sturgeon, for instance, is used more like a smoked turkey or smoked ham, Bolourchi said, while barbecued sturgeon more closely resembles swordfish. It is a dense, protein-rich fish.
Bolourchi said he also wants to move away from some of the bulk sales that Sterling offered.
“I think you’ve got to treat it a little bit more like a really nice wine,” Bolourchi said. “Our species of sturgeon is like a varietal of grape. And the craft that goes into producing it — and, in our case, cold aging it — there’s kind of an analogy to the barrels that wine is aged in.”
