Russian River- A Craft Brewery: Building a Brand through Product Innovation

In 2003, KCC decided to exit the beer business, as a financial adviser had advised it to divest itself of all non-wine properties. KCC then offered Cilurzo and Natalie the opportunity to acquire the RRBC brand name, along with the logo, the brand names of six beers, including Pliny the Elder, and several barrel-aged sour beers/funky beers . After acquiring the brand, the couple decided to open a brewpub in downtown Santa Rosa, California, and raised US$ 1 million from friends and family. Just two weeks before launching their new business, Natalie quit her job. A lot was riding on the business for the couple as both were jobless and their bank balance was at a minimum.

On April 3, 2004, the brewpub was opened – with 28 employees and a capacity for 150 patrons – offering various RRBC-branded beers. At the time of opening, the RRBC brewpub used a 20 (barrels) bbls brewhouse or brewery. The brewpub offered pizza, salads, and similar fare. Cilurzo said, “We don’t go overboard on food and beer pairings at the brewpub. We’ve always put a heavy emphasis on beer and food quality and customer service. Our focus is more on our customers having a great experience at Russian River.” They also distributed RRBC-branded beer to various clients (pubs and stores) in the neighborhood...