141: How Kava Haven Proved Demand Before Making a Single Bottle With Billy Grady

Before Kava Haven had a finished product, its founders tested whether anyone would pay $80 for a bottle. They built a website, created a product rendering, and ran ads. The interest that followed helped turn a $4K initial investment into a fully bootstrapped business that has sold more than 250K bottles and reached approximately 1,300 retail doors since launching in April 2024. In this episode of Business of Drinks, we sit down with Billy Grady, co-founder and CEO of Kava Haven, to unpack the decisions behind that growth. The brand’s kava-based non-alcoholic spirit was developed for people seeking an alcohol-free way to unwind. But translating that proposition into a business required testing demand, educating customers, and choosing a product format with room to fund further growth. Billy explains how wholesale preorders financed the first production run, why the founders chose a 750-milliliter bottle over cans, and how they’ve maintained their focus on one core product. We also explore the shift from a business dominated by wholesale to one that now generates roughly 80% of sales through direct-to-consumer channels. TikTok Shop more than doubled the business overnight, Billy says, while more than 40% of DTC customers have returned to purchase. Listen in to learn: • How to test demand and willingness to pay before committing to production.• Why creator partnerships can work even when an audience appears more interested in alcohol than moderation.• How Kava Haven identifies retail accounts with the customers and staff to support an unfamiliar product.• What Billy looks for in a distributor -- and how retail performance data helps open new doors.• Why the brand’s core buyers turned out to be ages 35–65, despite the founders’ expectations of a younger audience. For drinks entrepreneurs weighing product launches, channel expansion, or fundraising, this conversation offers a detailed look at building a business that can help finance its own next stage. For the latest updates, follow us: Business of Drinks website (sign up for our newsletter!) Business of Drinks YouTube Business of Drinks LinkedIn Instagram @bizofdrinks Erica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. Erica Duecy LinkedIn Instagram @ericaduecy Scott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor. Scott Rosenbaum LinkedIn Subscribe to the Business of Drinks channel for more insights on how brands, retailers, and operators are unlocking growth across beverages. And please rate and review us. Your support helps us reach new listeners. Thank you!