Sweet addiction with no consequences led to $1 million deal

After growing up with his hand firmly planted in the lolly jar, this Melbourne man launched a healthy alternative – and it’s grown into a huge brand.

A Melbourne man’s sweet tooth has evolved into a million-dollar brand available in one of the biggest supermarket chains in the country.

Daniel Kitay launched his Funday Natural Sweets company at the beginning of 2020, just as the pandemic started.

But the origins of the business are firmly rooted in his childhood.

“Growing up, I was fairly overweight and pretty obsessed with confectionery, lollies and chocolate as a child and teenager,” Daniel told news.com.au.

“At home, I was always known for pinching lollies from the lolly jar in the cupboard.

Daniel said

“Every couple of weeks, Mum and Dad would come and realise that there were a lot less and would check my bedroom and behind my bed.

“They would always find wrappers and they realised from an early age I was very much addicted to sweets.”

Daniel’s love of sweets followed him all the way through school but it was went he got to university, studying commerce and law, he realised he had some pretty unhealthy habits.

He wanted to have fun and meet people so he took the chance to cut out the candy and, within a year, he dropped 25kg.

Daniel Kitay founded Funday sweets. Picture: Supplied

But without sweets, he felt like something was missing in his life.

Daniel tried sugar-free lollies but quickly found these left him feeling unwell, bloated and gassy.

“I was torn as I didn’t want to eat sugary lollies but couldn’t eat sugar-free as I felt sick,” he said.

“I was stuck between a rock and a hard place.”

As the frustration built, Daniel started to investigate if there was an alternative and began to look at tapioca starch and chicory root fibre, as well as adding dietary fibre and pulling the sugar content down.

Funday was born – lollies that are gluten-free, with up to 91 per cent less sugar, no sugar alcohols and 7g of plant-based fibre.

“That’s part of why the brand name is Funday – it’s about bringing that sense of fun and enjoyment back to people’s lives,” he said.

“We all remember being kids and going to parties and having fun.

“But as you get older, the sense of guilt and all of those issues arise and you think twice about eating things. But I wanted to bring back that sense of fun again.”

Daniel starting experimenting with various formulas just before lockdown. Picture: Supplied

In the last two-and-a-half years, the brand has grown with red frogs, gummy bears, sour bears, sour peach hearts and gummy snakes stocked in Chemist Warehouse, Ampol and other independent stores.

But, the biggest milestone, has been signing a million-dollar deal with supermarket giant Woolworths.

Daniel never expected the success that Funday has had since its launch.

“I knew we were doing something special in terms of the products. I knew it was first to market. I knew it was really innovative. I knew, you know, it was going to be something special once it launched,” he said.

“The challenge for me, is to always play devil’s advocate.”

There are more lollies on the horizon for the brand, with Daniel saying the company was always looking to expand but wanted customer feedback before making a move.

At the end of the day, Daniel said while LOL is a slang term for lollies, it also means laugh out loud and that is all he wants to bring to his customers.