Better-for-you candy: Australia’s Funday outlines domestic and international expansion strategy

By Guan Yu Lim contact

- Last updated on GMT

Funday markets its lollies as natural, and made with real ingredients without the sugar or sugar alcohols. ©Funday
Funday markets its lollies as natural, and made with real ingredients without the sugar or sugar alcohols. ©Funday

Related tags: Australia, Candy, Prebiotic

Australia start-up Funday Natural Sweets is on a mission to increase its presence from 1,000 outlets to 3,000 next year, in addition to unveiling plans to expand internationally.

The brand first launched in March 2020 manufacturing prebiotic lollies, and the products are now available at Woolworths, Chemist Warehouse, health food stores and online in Australia.

According to the founder Daniel Kitay, the firm is in discussions with other independent supermarket chains, petrol and convenience outlets to grow its presence in Australia.

We have had a huge amount of interest from distribution channels that traditionally stocked confectionery and or health food products​.”

Funday markets its lollies as natural, and made with real ingredients without the sugar or sugar alcohols. The lollies contain prebiotic tapioca fibre, chicory root fibre, natural stevia and natural colours and flavours from red beet, turmeric and carrot.

The biggest challenge for us so far has been keeping up with the demand for our products this year. We only launched this year and we’ve been trying to keep up and try fill the shelves as quickly as possible​.”

Besides growing in the physical outlets, Funday introduced a subscription model for its e-commerce store in Australia, which have been doubling month-on-month.

It’s our online sales that have really taken us by surprise. It’s why we introduced a subscription model, where a top-up of sweets are delivered on your schedule. We have so many repeat customers who love the convenience, that’s a real growth area for us​.”

Kitay told us: “We're currently tracking around 40% repeat customers​.”

New Zealand entry

Funday recently launched into Chemist Warehouse NZ, its first international listing, selling out within the first few weeks.

The products are available in all 27 Chemist Warehouse outlets in New Zealand, and Funday is looking to expand its range into the additional 15 stores to be built by Chemist Warehouse NZ in 2022.

Kitay said the strategy is to expand broader into the grocery channel in NZ next year.

Asia expansion

Combined with its launch in New Zealand, Funday is also rolling out more activations in the Asia region.

It is piloting the sales of its prebiotic lollies in Hong Kong and Singapore now. The firm has also received interest from distributors in Japan.

There is significant demand for low sugar products with rising health consciousness in Japan, seen in the large functional food segment. Consumers there also like gummy products​.” Kitay said.

The firm is aiming for an official launch in Singapore and Hong Kong in mid-2022.

To aid in its export plans, Funday has applied for a grant from the Australian Government to assist in its marketing efforts into international markets.

We have no plans for external funding now, but I think as the business continues to expand globally, there may be a time where the business might look for some external funding to grow the business to another level, to secure broader markets, such as Asia or even Europe or the US​,” Kitay said.

Next year, we're hoping to release at least one or two new products into the domestic market, that should trickle through into the global markets. It will be the same concept of functional confectionery​.”

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