Oct. 30 (Bloomberg) -- University of Georgia tailgaters at tomorrow’s football game against the University of Florida may expand their traditional burgers-and-beers menu with fancier fare: homegrown caviar.

The game between the Georgia Bulldogs and Florida Gators, known as the World’s Largest Outdoor Cocktail Party, is expected to bring about 100,000 people to town, according to the Chamber of Commerce in Jacksonville, Florida. Georgia fans can accompany their beverages with caviar that comes in a gold-colored tin with the school’s black “G” sports logo if they’re willing to pay $58 for 30 grams, about an ounce.

The UGA Premium Siberian Sturgeon Caviar is produced by Doug Peterson, an associate professor who’s tapping the rivalry with Florida to help build a caviar industry in Georgia. His “They Have Gatorade … We Have Caviar” slogan pokes fun at the University of Florida’s creation of the Gatorade sports drink 44 years ago.

“It’s about developing economic opportunities for Georgia’s farmers,” Peterson said in an interview inside a refrigerated laboratory at the university. “And football is about fun. The slogan is adding to the fun of the game and the rivalry.”

Petrossian Inc., which has been distributing caviar around the world since the 1920s, encouraged Peterson, an associate professor of fisheries and aquaculture, to expand his sturgeon operation. He raises Siberian sturgeon at the school’s 65-acre fishery using fresh spring water from the northern Georgia mountains.

Caviar Sales

Peterson began selling caviar in August and expects to produce a total of about 50 kilograms (110 pounds) this year, with a retail value of $120,000. He plans to double output next year, he said.

Proceeds from caviar sales will benefit conservation and aquaculture research at the university in Athens, Georgia, said Peterson, 44. The state lost 1,200 operating farms from 2006 to 2008 and now has 47,800, according to U.S. Agriculture Department statistics.

Wild sturgeon historically has accounted for 98 percent of the world market, while farmed caviar has been only 2 percent, Peterson said. The Caspian Sea is the primary source for premium caviar, he said.

Petrossian approached Peterson several years ago because many Caspian sturgeon are listed as endangered or under export restrictions, said Michel Emery, director of sales for the Paris-based company.

Sturgeon Expertise

Peterson is among a handful of U.S. sturgeon experts, Emery said. Petrossian, which hasn’t signed any formal deal with Peterson or the university, picked them for their low-cost and environmentally friendly caviar-producing methods, he said.

“The quality is excellent,” said Emery, 46. “It’s really good caviar. It’s early in the process, but we are very open to doing some things with Doug in the future.”

Peterson developed a low-cost technology for farmers to raise young sturgeon, known as fingerlings, with the help of a $50,000 grant from the Georgia Research Alliance, a group that backs university-based research to encourage economic development in the state.

The alliance typically invests in bioscience, broadband technology and alternative energy projects, said Mike Cassidy, 55, president. The group saw a business opportunity for Georgia farmers in Peterson’s efforts, he said.

“It just seemed like a good fit,” Cassidy said at his office in downtown Atlanta. “A little bit of money can go a really long way in helping take some raw ideas and converting them into a technology that can create a sustainable business.”

Seeking Investors

The university eventually could work with a private interest to commercialize the methods and process for making high-quality caviar, Peterson said. He’s looking for investors to back more sturgeon farms.

The recession hasn’t spared caviar. Petrossian’s top- selling California farm-raised white sturgeon caviar sells for about $3,500 a pound, after a decline of 15 percent to 20 percent last year, Emery said. That’s about $220 an ounce.

Global production of caviar is estimated at more than 400 tons a year, with an average price of $50 an ounce, according to the World Wildlife Fund’s Web site. That values the market at about $640 million.

“The size of the caviar market has always been a shot-in- the-dark sort of proposition,” Richard Adams Carey, author of a book about caviar called “The Philosopher Fish,” wrote in an e-mail.

Budget-Breaker

At $58 an ounce, the Georgia product may be out of reach for many cheeseburger-eating tailgaters, including Beverly Logan, 58, who gathered with friends near the Georgia campus before the school’s Oct. 3 loss to Louisiana State University.

“If my husband would let me, I probably would serve it,” Logan said after sampling Peterson’s caviar. “It’s very good.”

Mallory Mason, a 20-year-old sophomore from Blue Ridge, Georgia, agreed after her taste test, the first time she had tried fish eggs.

“If it didn’t cost so much, I would eat it all the time,” Mason said. “It’s really good. It doesn’t help that I know what it is, but if I didn’t know what it was, I would really love it.”

The Georgia logo on the package and Gatorade-baiting slogan is a marketing gambit to capitalize on the local popularity of the football team, Peterson said. The packaging eventually may be changed to appeal to a broader audience beyond football.

“The people from Georgia love it,” he said. “Florida fans think it’s kind of silly.”

This weekend, Georgia supporters are focused on trying to beat Florida, the No. 1 team in the Bowl Championship Series rankings.

The schools’ rivalry dates back to 1914. Georgia, not ranked, leads the series with a 46-38-2 record, although Florida was won nine of the past 11 meetings. Georgia is a 17-point underdog in the game, according to Las Vegas odds-makers.

To contact the reporter on this story: Michael Buteau in Atlanta at mbuteau@bloomberg.net

Last Updated: October 30, 2009 00:50 EDT