Oser Communications Group

GOURMET NEWS NOVEMBER 2014 www.gourmetnews.com MARKETWATCH MARKETWATCH 2 0 C A V I A R BY DAVID BERNARD Time was, when you wanted to experi- ence top-quality caviar, there was one game in town (or rather one sea in town): the Caspian Sea. The Soviet Union and Iran, with Caspian shoreline, had sole ac- cess to the species of sturgeon that pro- vided the world's most delicious caviar, which retailed for hundreds of dollars per ounce. However, today, retailers wanting to procure some of the best "Russian" caviar available, may take their shopping trip far and wide – to China and Uruguay, for example. With exports of wild caviar from the Caspian Sea and other locations banned or mostly banned since 2006 due to poaching, overfishing, pollution and shrinking habi- tat, American caviar importers have turned to a growing global aquafarm industry. This is yielding some delicious results. The key to sourcing the best caviar is to keep your eye not so much on the fish, but on the farm. While most aquafarms started their operations with the prized Caspian Sturgeon, Russian Osetra or Siberian Stur- geon (chosen for its rapid rate of matura- tion), it is the individual farm's processes and practices that determine whether the fish turn out world-class "Russian" caviar or an also-ran product. While feed is not typically a distinguishing factor in product quality – there are only a few large-scale feed producers worldwide – aspects such as how much and what kind of vitamins are given and the strength of a country's regu- latory practices play important roles in ul- timately determining caviar quality. "My job is to go to visit every single farm to see if they have close to a natural situa- tion," said Max Moghaddam, President and owner of Bemka House of Caviar & Fine Foods, a Fort Lauderdale, Florida-based importer and distributor. "The quality of the water is most important. If a farm is landlocked and water is a limited resource – maybe they're using only 10 percent fresh water and recycling the rest – that's not re- ally a farm we want to work with." In addition to China and Uruguay, coun- tries producing farmed caviar include Italy, the world leader in the production and ex- port of such caviar, Germany, France, Bul- garia, Italy, Spain, Israel, Canada, South Korea and Saudi Arabia, as well as Iran and a number of former Soviet Republics. Rus- sia produces a significant amount of caviar, but most is consumed by the country's large domestic market. Today, the main varieties of caviar im- ported into the United States continue to be Russian Osetra and Siberian Sturgeon. Some hybrids are sold as well, for example Bester, which is a hybrid of the Caspian na- tive Beluga and the smaller Sterlet Stur- geon. Beluga caviar itself is banned from import or sale in this country, because the Beluga Sturgeon is an endangered species. Marky's, based in Miami, sources its top- selling Osetra from an Israeli aquafarm that uses a continu- ous flow of moun- tain stream water. The Karat Osetra caviar is sold in Black, Amber and Gold varieties. The Amber is a particu- lar hit, juicy but with a firm grain and distinctive nutty clean taste. While foreign aquafarms are turn- ing out quality caviar, domestic production has grown as well, thanks to both lower pricing and increased demand. With the overall dip in world produc- tion that occurred between the ban- ning of much wild caviar and the growth of the farmed caviar industry, do- mestic producers were able to fill part of the supply void. The caviar from California White Sturgeon, similar to Russian Osetra in size and taste, if a bit more fishy, now makes up more than 70 percent of authen- tic domestic caviar production and pro- vides consumers with a gourmet product at a somewhat lower price. "We find that White Sturgeon is a very good middle ground," said Christopher Hlubb, President and COO of Marky's. "It does not usually compete with products at the top such as Russian Osetra. Like most products, it depends on grade, but it posi- tions itself as a very good product, although the price has risen and is nearing that of Russian Osetra." For retailers looking to offer consumers fish roe at an even lower price, there are a number of non-sturgeon "American caviar" products available (note: this term is also often used to refer to the authentic caviar from California White Sturgeon). Paddlefish roe, the "cousin of caviar," comes from fish native to the Yellowstone River and Mississippi River system. Salmon and whitefish roe are also lower price-point options. "We talk to customers and ask them what their need is," said Dale Sherrow, Vice President of Seattle Caviar Company, which sells American caviar as well as a full range of imported caviar. "If it's an event, what kind of event, how many people, what's their budget. And for some customers, salmon roe is the per- fect choice. You get that strong salmon flavor. It has a larger bead. It's just deli- cious." While there are a number of tasty non- sturgeon roe products available, these are not necessarily a stepping stone for con- sumers to move into imported caviar. "We find a lot of customers have their preference, their budget, and they stay with it," said Sherrow. "They get great tasting American caviar that can be used most ways." GN Evolving U.S. Caviar Market Stocked with International and Domestic Products Marky's Spreads Caviar Knowledge with Certification Program With the rapid growth of aquafarm culture worldwide, accompanied by sometimes misleading labeling of products in which caviar sold as highly-prized "Osetra," for example, is actually produced from any of several distinctly separate species, education is key, and that education seems to be happening. "I'd say that the American caviar market is growing as it did in the last 15 years with wine, meaning that people are becoming more educated and understanding of the differences between the different species, and they're understanding aquaculture," said Christopher Hlubb, President and COO of Marky's Group Inc. Marky's has helped that educational process along by creating the first certification program in which consumers, chefs, retailers and others in the industry can take courses on the various aspects of caviar. "We help professionals and consumers understand the different types of caviar – the differences in their origin, as well as the differences between the species themselves," said Hlubb. "They're able to try every caviar that exists and learn at a level that is appropriate for their position in the industry." For more information about Marky's Caviar Educational Program, visit www.markysgroup.com, or email Hlubb at chlubb@markys.com.

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