BearWaters Brewing plans rebuild with new focus after devastating floods
For the second time in three years, floodwaters from the Pigeon River punished BearWaters Brewing in Canton, but owners say they're building back.
Cory Vaillancourt photo
After two major floods in three years, BearWaters Brewing Company is adapting its business to ensure a future in downtown Canton. During a Feb. 13 town meeting, brewery representatives detailed their struggles and their vision for a new chapter, which includes shifting away from brewing on-site while expanding into a whole new line of business.
Since establishing its flagship Canton location in 2017, BearWaters owners and investors have pumped nearly $2 million into the business. However, flooding associated with Hurricane Helene on Sept. 27 left the riverside brewery closed once again, with extensive damage.
“What we're staring down the barrel of right now, at a minimum, is a $500,000 renovation/repair to get it operational again,” said Kevin Sandefur, co-owner of BearWaters. “That's a lot to process, but you know it's a risk and an opportunity that we're willing to take because we're invested in the community. We've been here seven years. We formed a relationship with many of you in the room, and we feel a really kindred connection to the community, we want to continue what we're doing.”
In addition to property damage, the company has missed out on approximately $740,000 in revenue over the past five months, with staffing levels dropping from 89 full-time employees to just 26.
Despite applying for four local recovery grants, including one from the Haywood Advancement Foundation, the brewery did not receive funding.
That leaves the owners to rely solely on flood insurance, a process that has been slow and complicated according to Sandefur, who added that he has been working with Sen. Thom Tillis and Rep. Chuck Edwards (R-Henderson) to address delays in accessing approved insurance funds.
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“What we're finding is we're getting a lot of ‘ping pong’ action, where ‘We need one more thing before we could release those funds,’” Sandefur said, alluding to insurance industry practices he says have been clogging up the works. “It seems like a lot of stall tactics. The claims have been approved, and unfortunately, after our experience with [2021’s Tropical Storm] Fred, we did up our coverage, and we have good coverage on the building. The issue is accessing those funds for repairs.”
Unfortunately, concerns about future coverage have arisen.
“Flood insurance going forward may be an issue for us, because the one carrier we had now was covering two claims within a three-year period, and that's a red flag for them, so they're very leery of issuing any policies going forward,” he said.
As part of its recovery plan, BearWaters will cease brewing operations at its Canton location. Instead, production will move to Asheville through a new partnership with Green Man Brewery, a well-known craft beer producer.
The Moose Lodge, behind BearWaters Brewing, partially collapsed in the wake of Helene. Cory Vaillancourt photo
Sandefur called it “sad,” but there are some benefits — removing the brewing equipment reduces liability, may help BearWaters in securing insurance coverage and opens up more real estate in the building to use as the company pivots to a new concept inspired by Western North Carolina’s iconic Nantahala Outdoor Center.
“I know it's a little bit of a bummer that we won't make the product right there, but consolidation in the industry is happening anyway. Utilizing other people's capacity is a better alternative,” he said. “We get that equipment out of harm's way, because that's the bulk of the damage that we sustained this time. It really, really tore the brew system up.”
Although the Canton location will still serve as a taproom and eatery, the new venture would focus on activities like paddleboarding, kayaking, tubing and possibly e-bike and e-scooter rentals or even a fishing outfitter — in line with a recent Visit Haywood study calling for more outdoor recreation opportunities for tourists and residents alike.
However, the company has raised concerns about the state of surrounding properties, including the damaged Moose Lodge and adjacent apartment building. Ensuring that these structures are stabilized and meet safety codes is crucial for securing insurance and attracting customers to the revitalized area, which Sandefur said currently resembles a “war zone.”
Town leaders expressed strong support for BearWaters’ resilience and commitment to Canton, recognizing the brewery as an anchor business that has drawn visitors from across the country and the world.
BearWaters Brewing, seen here after deadly flooding in 2021, has been a portrait of resiliency. Cory Vaillancourt photo
“I think y'all and businesses across Western North Carolina continuously are being let down by the lack of small business grants — and I said ‘grants,’” Mayor Zeb Smathers told Sandefur, echoing a rallying cry from the region’s business community about the need for direct financial assistance to affected businesses rather than long-term low-interest loans. “Washington and Raleigh still have not delivered anything [near] what’s needed.”
BearWaters’ struggles are not unique; despite a considerable rebound since Helene and positive news about the reopening of one lane in each direction along the currently closed stretch of Interstate 40 in March, many businesses are in a make-or-break period where without significant assistance, they could vanish — taking jobs, tax revenue and tourism infrastructure with them.
“We're not out of the woods yet,” Smathers continued. “The economy of Western North Carolina, our small business community, is extremely fragile, and it can still get us in a very dangerous place that really sucks us all in to an economic black hole. We're not past that. There's too many businesses leaving. I mean, in every county. I will keep harping on this, [and the] board has. It's got to be grants — not loans.”
Alderman Ralph Hamlett issued a scathing reproach of the insurance industry somewhat related to his own personal situation. Hamlett’s home was destroyed on Aug. 17, 2021, during Tropical Storm Fred, after Smathers walked through floodwaters to pull him out of it. Hamlett’s still awaiting a buyout from FEMA and has been renting a nearby home since then.
“Insurance companies like their little game, don’t they? ‘Pay me every month, but don't you dare use me, and then if you have to use me and use me again, I'll cancel on you and I will try to get out of paying you what you’re owed by whatever hook and crook I can do,’” he said. “I would hope that one day, we force insurance companies to do what they say they'll do when they take revenue from us to pay for their services, which oftentimes goes by the by.”
Hamlett’s also upset that his decaying home is still just sitting there within eyeshot of the brewery, contributing to the blight Sandefur mentioned as a negative impact on the perception of both BearWaters and Canton.
“When you try to welcome guests to our county, and they see, as you described it, ‘a war zone,’ and it's my house, I'm kind of stuck, as you folks have been stuck,” Hamlett said.
Alderman Tim Shepard thanked Sandefur and co-owner Art O’Neil, who was also present at the meeting, for their tenacity and determination to bring the beloved business back.
“No one would have thought any less of you for saying, ‘Two times in three years? That's just too much,’ but y'all are sitting here and your primary concern is to figure out how to come back and be part of the town,” Shepard said.
Even more so, Alderwoman Kristina Proctor noted that BearWaters was part of a small core of business owners who invested in the town when it was still somewhat run-down and ribbon-cuttings were rare.
“I got chills when you said that you were coming back,” Proctor said. “It will look different, and that's okay. And so will all of us. So will all of Canton.”
Cleanup efforts at BearWaters have long been underway, and renovation work is set to begin next week.
