Sinawo Jack|Published
Selling a house, selling a dream car and going months without an income were among the sacrifices Cape Town entrepreneurs Michael Tones and Jason Reid made to build their South African hard seltzer brand, Nawty Water.
The business is now stocked in more than 500 retail outlets nationwide following its expansion into Pick n Pay. But the co-founders say their journey has taught them that building a sustainable business takes patience, calculated risks and knowing when to grow.
“We gave up everything we had, all security we gave up, and then we went all in on this,” Tones said.
How Nawty Water started
Nawty Water began after the friends identified a gap in the market for low-calorie alcoholic drinks that tasted good.
“We knew there was a gap for good-tasting, low-calorie alcoholic drinks,” Tones said.
The brand's name started as a joke among friends. After someone referred to an alcoholic drink as “Naughty Water”, Tones trademarked the name two days later and contacted friends to ask who wanted to invest. Reid joined him in developing the idea.
The possibility of becoming business partners had first emerged when the pair were in Grade 9, although they did not immediately find the right opportunity to work together.
Their paths into entrepreneurship were different, but both were looking for an opportunity to build something of their own.
Selling assets to back the business
Reid had been working on yachts overseas, saving money because he wanted to start a business but needed capital.
When the opportunity to join Nawty Water arose, he saw it as the breakthrough he had been waiting for.
“Yes! Finally! It’s happening,” Reid recalled thinking.
Tones, meanwhile, was running three other businesses, including in media and marketing, but felt he was not pursuing work he was passionate about. He began questioning why he was building other people's dreams instead of his own.
Both founders made significant personal sacrifices to get the venture off the ground.
Tones sold his house and moved back in with his mother at the age of 29 to invest in the business. Reid returned from working overseas, sold his car, including his dream car, and went about six months without an income.
Learning to grow at the right pace
Building the business also meant making difficult decisions in an unfamiliar industry.
The founders said they nearly ran out of stock three times and sometimes turned down retailers because they could not meet demand.
Reid said progress often required taking a chance before having every answer.
“That’s how you get somewhere, is by jumping in, headfirst into it,” he said.
The founders' experience has also taught them the importance of proving that a business works on a manageable scale before pursuing rapid expansion.
“If you can make something work at its smallest form, that’s what your goals should be,” Tones said.
With Nawty Water now available in more than 500 retail outlets across South Africa, the founders' journey highlights the personal sacrifices, patience and practical decisions involved in turning an idea into a growing business.