Mediamec South African hard-seltzer brand Nawty Water has expanded its retail presence to more than 500 outlets nationwide, including Pick n Pay Liquor, after its founders sold personal assets and gave up financial security to fund the venture.
Cape Town entrepreneurs Michael Tones and Jason Reid say the growth has come with difficult lessons about managing demand and deciding when to expand.
Tones sold his home and moved back in with his mother at 29 to put money into the business. Reid returned from working overseas, sold his dream car and spent roughly six months without an income.
The friends had first discussed going into business together in Grade 9, but it took years to find an opportunity they both wanted to pursue.
Nawty Water emerged from what they saw as an unmet demand for flavourful alcoholic drinks with fewer calories. Its name grew out of a joke among friends, when someone described an alcoholic drink as “Naughty Water”.
Two days later, Tones trademarked the name and approached friends about investing. Reid joined him to develop the venture.
Before that, Reid had been saving earnings from work on yachts abroad, hoping to build enough capital to launch a business. He viewed Nawty Water as the opportunity he had been waiting for.
Tones was running three other businesses, with interests including media and marketing, but wanted to focus on something he felt more passionate about rather than helping others realise their ambitions.
Entering an industry unfamiliar to them brought challenges beyond raising money. The founders said the business came close to exhausting its stock on three occasions and had to decline some retailers because it could not supply enough product.
Reid said building the company required a willingness to act without having every answer in advance.
For Tones, a key lesson has been to establish that a business can succeed on a small scale before pushing for rapid growth. Both founders emphasised patience, considered risks and matching expansion to the company’s ability to meet demand.
