Aussie lands huge Coles deal as supermarket changes checkouts
A Melbourne man has landed a multimillion-dollar deal with the supermarket after Coles made a huge change to its snack aisle.
A Melbourne man has just landed a “substantial multimillion-dollar” Coles deal after the supermarket replaced sugary treats with healthy options at checkouts.
Daniel Kitay launched FUNDAY Natural Sweets in April 2021, two years after being left “frustrated” by a lack of low calorie lolly options.
The 35-year-old, who said he was “fairly overweight” as a child and teenager, created the low-sugar, high fibre lollies to give people a “permissible indulgence” that wouldn’t deter their health goals.
After initially launching into Chemist Warehouse, the product took off, and in the space of just 2.5 years FUNDAY is now in more than 5000 locations across Australia.
Coles supermarkets recently added the product as part of its decision to rejig its health food aisles, removing sugary treats and replacing them with “better for you” snacks at checkouts to help aid shoppers make healthier decisions.
“In early November, we started selling FUNDAY as well as many other healthier alternatives at our front registers nationally,” a Coles spokesperson told news.com.au.
“This was part of our focus on providing customers with healthier options throughout the store.”
Chocolate bars and chips that were located by the checkouts have been replaced with foods that were previously only found in the health-food aisle.
Other products found in the health section have been relocated too in order to make shopping “easier” for customers.
The supermarket giant added the changes had been “well received, proving that customers are seeking healthier alternatives in their everyday shop” with Mr Kitay describing the move as a “milestone” for his business.
“Our collaboration with Coles stems from their strategic initiative to offer healthier choices at the checkout – a move aligned with the UK’s HFSS laws, aimed at restricting high-fat, sugar, and salt products near checkouts,” he told news.com.au.
“FUNDAY, as a better-for-you lolly alternative, emerged as the ideal solution for Coles to cater to health-conscious consumers.
“With our commitment to low sugar, no artificial sweeteners, prebiotic fibre, gluten-free, and all-natural goodness, we seamlessly align with the evolving preferences of consumers prioritising health and wellness.”
Woolworths, which has stocked FUNDAY Natural Sweets since December 2021, also made the decision to remove a large percentage of confectionary products from checkouts recently, offering healthier choices with a Health Star Rating (HSR) of 3.5 and above.
It’s also the top-selling gummy and adult sweet snack in Woolies Health.
“In Australia, where 30 per cent of consumers sidestep the confectionery aisle, being present at the checkout is pivotal,” Mr Kitay explained.
“The Coles deal is a substantial multimillion-dollar agreement, marking a significant milestone for the brand.
“Beyond the financial implications, this collaboration moves us into the spotlight, reaching shoppers across 800 new stores. The growth potential is immense, and the early signs are promising, with FUNDAY consistently flying off the shelves at checkouts.”
As well as Coles, Woolworths and Chemist Warehouse, Mr Kitay said FUNDAY products were sold in a diverse range of establishments such as hotels, airports, canteens, and even cultural institutions such as the National Gallery of Victoria.
“Our brand isn’t confined to a single aisle; it’s meant to be part of every Australian’s daily moments, adding a touch of joy and deliciousness wherever they go,” he revealed.
“FUNDAY was created to inject a breath of fresh air into a market saturated with lacklustre choices.
“The aim was clear: to disrupt the conventional lolly landscape dominated by ‘big sugar’. The brand is a solution to the collective frustration of consumers seeking a healthier, more enjoyable sweet treat.”
Mr Kitay, who lost 25kg on his own health journey through diet and exercise, said the brand offers 7 different flavours and varieties – including two vegan lollies – but there was one clear favourite among consumers.
“Without a doubt, our Snakes have emerged as the frontrunners in popularity,” he said.
“Their success lies in the remarkable combination of natural, fresh flavours and a gummy texture that strikes the perfect balance between chewy and firm, creating an irresistible treat that our customers absolutely love.”
Other flavours, which retail for $4.50 per 50g bag, include Sour Cola Gummy Bottles and Raspberry Gummy Frogs. Each bag contains about 100 calories for the entire packet.
Mr Kitay, who welcomed a little girl just three months after launching FUNDAY, added he was “immensely proud” of the brand’s “unwavering commitment to sustainability and inclusivity”.
“Our products are crafted with a strong focus on environmental responsibility – they are carbon neutral, predominantly powered by renewable energy, and even our gummy waste finds a purpose as pet food,” he said, adding FUNDAY was “constantly exploring avenues for improvement while acknowledging that perfection is a journey, not a destination”.
He added the “guilt-free” indulgence brand had some “exciting developments” in the pipeline.
“Our exploration extends beyond just new flavours; we’re delving into diverse formats, shapes, and textures to elevate the FUNDAY experience.”
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