Natural lolly brand Funday in 5000 stores after 250% year-on-year growth

An Australian natural lolly brand that has defied the odds to disrupt the entire confectionery category and sells millions of packets of gut-loving lollies with no sugar added and no sugar alcohols every quarter has revealed some sweet upcoming developments for 2024 and beyond.

Funday Natural Sweets was founded by Daniel Kitay in 2021 and originated from his trip to the USA in 2019, where inspiration and frustration ignited his vision for a healthier lolly alternative.

Frustrated by the lacklustre options in the confectionery landscape and driven by his personal struggle with weight, Kitay told SmartCompany that he envisioned a world where lollies could be a guilt-free indulgence, free from excessive sugars and artificial sweeteners.

“This idea materialised into Funday, and its success lies in achieving product-market fit,” he said.

“Our customers seek guilt-free indulgence and a sense of wellbeing in what they consume, and Funday delivers on these expectations, providing a satisfying and healthier option in the confectionery market.”

Funday’s products are available in over 5000 locations across Australia, including major retailers like Woolworths, Coles, Chemist Warehouse, Ampol Foodary, Coles Express and Harris Farm. 

The lolly empire also has a strong presence in thousands of independent stores.

Kitay said while Funday doubles down on its Australian business, it is also selling in the Middle East, Saudi Arabia, Kuwait, Jordan, and UAE, as well as in Singapore, and Hong Kong.

“Exciting developments are also in the pipeline for the US and European markets in 2024,” he confirmed.

“Our commitment to providing guilt-free indulgence is resonating globally, and we look forward to bringing Funday to even more people around the world.

“In the realm of product development, our focus for 2024 is on unveiling innovative launches that directly address identified gaps in the market. 

“Through active engagement with our customers, we’ve cultivated a deep understanding of their preferences and discerned areas where our offerings can excel.

“As we pave the way forward, our dedication to innovation and customer-centricity remains unwavering, ensuring that each new product resonates seamlessly with the dynamic desires of our cherished consumer base.”

Funday doesn’t use sugar to make its lollies, instead using real food ingredients like tapioca starch and chicory root fibre to give the lollies a sweet flavour. The lolly brand then adds a touch of the all-natural stevia leaf to balance things out.

With only three full-time staff and a handful of part-time and casual employees, Funday is growing at 250% YoY and is the number one top-selling gummy and adult sweet snack in Woolworths Health.

Kitay said based on Quantium data, which tracks scan sales at Woolworths, Funday is the leading sweet snack in the Woolworths health aisle across the nation. 

“Additionally, we are the top-selling gummy across the health food aisle in Australia. These figures highlight the positive reception of Funday products among consumers,” he said.

Kitay also spoke with SmartCompany about launching in the midst of COVID, stating that securing Chemist Warehouse as a stockist just months after was a real gamechanger.

“Growing the business, especially during the challenging times of COVID, involved overcoming significant odds,” he said. 

“Overseas shipping costs tripled, and the success of our range meant a substantial capital outlay on freight. 

“We had to be strategic with marketing investments and pivot our entire operational model to suit the changing needs of COVID. Our agility allowed us not just to survive but to thrive. 

“Strategic collaborations, such as the game-changing partnership with Chemist Warehouse initially, provided us with the ability to place orders, and their continued support remains a huge reason for our success.”