hubinternational.com • craftbrewtrust.com

Russian River Brewing Company

Brewing Robust Benefits

Success StoryAt A Glance - Russian River Brewing Company

1. THE CHALLENGE High cost of health plans; limited coverage options; time-consuming administration

2. THE SOLUTION California Craft Brewers Association (CCBA) Employee Benefits Trust; craft beer industry preferred plans and pricing; HUB-backed technology and services

3. THE RESULT Over $46,000 in annual savings; increased plan options, access to core benefits, and more; cost-free setup of automated benefits technology

“I would be very surprised if breweries could find more comprehensive and affordable coverage than those offered through California Craft Brewers Association (CCBA) Employee Benefits Trust and its partner, HUB International.”

- Carolyn Burke, Director of Human Resources

hubinternational.com • craftbrewtrust.com

Case Study: Russian River Brewing Company | 2

Successful craft brewers embody the entrepreneurial spirit. Their passion for what they do and their ability to spot opportunities helps their business thrive in a highly-competitive industry.

Vinnie Cilurzo was the brewmaster for Korbel Champagne Cellars, the original owners of Russian River Brewing Company (RRBC). Like most entrepreneurs, Vinnie did it all: Sales, distribution, and brewing. When Korbel decided to exit the craft beer business, they generously offered Vinnie and his wife, Natalie, the rights to the brand. Vinnie embraced the opportunity.

RRBC progressively grew to 90 employees. Its pub became a gathering spot in its Santa Rosa, California community, where they also host numerous charitable events and social gatherings. Supporting their employees and community is important to RRBC.

Like most employers, RRBC struggled with the sky-rocketing costs of health insurance and employee benefits. As a small business, they faced limited options and steadily increasing costs. They knew they needed a different approach. That’s when they discovered the CCBA Employee Benefits Trust and HUB International.

From Big Costs to Big SavingsCraft brewers understand the challenge of competing with “Big Beer” companies. However, when it comes to health benefits, insurers view bigger as better. To reduce the risk of covering the high cost of health care, insurers offered RRBC two arrangements.

• Insurers pooled RRBC with a group of other small businesses

• One insurer offered age-banded rates (the older the individual, the higher the rate)

But that left RRBC feeling stuck with no control over how other businesses used the health coverage. Additionally, age-banding was a guaranteed increase as RRBC’s employee population aged.

Membership in the CCBA Employee Benefits Trust gave RRBC something most small businesses did not have – purchasing power. Insurers compete to earn the business of the more than 15,000 individuals employed by CCBA brewery members. Those are the big numbers insurers crave. What did that mean for RRBC?

• New health plan options with lower premiums, richer benefits, significantly lower out-of-pocket costs, and expanded covered services

• Over $46,000 in savings over the prior year that RRBC invested back into their brewery

And Automated DelightAnother challenge for RRBC was its payroll system. It did not “talk” to the Carriers’ enrollment systems. As a result, HR staff handled time-consuming paper submissions for enrollment elections, eligibility training, and payroll deductions. HUB International stepped in to help deliver a seamless benefits administration solution.

• HUB worked with contracted Carriers to build an electronic data interchange for a completely automated and paperless transmission from the payroll system

• HUB negotiated a cost-free setup for RRBC, generating even more administrative savings!

Client Profile

Location California (2 locations)

Industry Craft Beer

Employees 90