Entrepreneurs from Cape Town, Michael Towns and Jason Reed, sacrificed much, including selling their home and beloved car, as well as months without income, to create their hard seltzer brand in South Africa—Nawty Water.
Thanks to expansion into Pick n Pay stores, the business is now available in over 500 retail outlets across the country. However, the co-founders emphasize that their experience taught them that building a sustainable business requires patience, calculated risks, and knowing the right moment for growth.
Towns stated: 'We gave up everything we had, all our security, and then fully invested in it.'
Nawty Water entered the market after friends noticed a gap in the segment of low-calorie alcoholic beverages with good taste. Towns noted: 'We knew there was a need for tasty, low-calorie alcoholic drinks.'
The brand name initially arose as a joke between friends. After someone called the alcoholic drink 'Naughty Water,' Towns patented the name two days later and contacted his friends to see who was willing to invest. Reed joined him in developing this idea.
The opportunity to become business partners first appeared to them in ninth grade, although they did not find a suitable opportunity to collaborate immediately. Their paths to entrepreneurship were different, but both sought a chance to build something of their own.
Reed worked on yachts abroad, saving money because he wanted to start his own business but needed capital. When the opportunity to join Nawty Water arose, he saw it as a long-awaited breakthrough. Reed recalled his thoughts: 'Yes! Finally! It's happening.'
Meanwhile, Towns managed three other ventures, including media and marketing, but felt he wasn't doing work that truly inspired him. He began to question why he was building other people's dreams instead of his own.
Both founders made significant personal sacrifices to launch the venture. Towns sold his house and moved back in with his mother at age 29 to invest in the business. Reed returned from working abroad, sold his car, including his favorite one, and went about six months without any income.
Building the business also required making difficult decisions in an unfamiliar industry. The founders shared that they ran out of stock almost three times, and sometimes they turned away retailers because they could not meet demand.
Reed stressed that progress often required risk before getting all the answers. He said: 'This is how you get somewhere, by jumping into it headfirst.'
The founders' experience also taught them the importance of proving the business's viability on a controlled scale before striving for rapid expansion. Towns concluded: 'If you can make something work in the smallest form, that's what your goals should be.'
Now that Nawty Water is available in over 500 retail outlets across South Africa, the founders' story demonstrates the personal sacrifices, patience, and practical solutions necessary to turn an idea into a growing business.