Funday founder on how retail has changed since Covid – and stayed the same

It’s been five years since the World Health Organization officially declared Covid-19 a pandemic, prompting governments around the world to shut their borders and go into lockdown in an effort to stop the spread of the highly contagious virus. The global retail industry was transformed overnight as stores were forced to close or severely limit in-person shopping, supply chains were disrupted and consumers faced unprecedented levels of fear and uncertainty. However, despite the profound personal toll on millions of people directly affected by Covid, it soon became clear that the pandemic would not be all bad for business. In places with strong social safety nets, many consumers found they had more cash in their pockets than before and, with few other outlets available to them, started online shopping in droves. Global online retail sales went from almost US$3.46 trillion in 2019 to nearly US$4.29 trillion in 2020, according to Digital Commerce 360 estimates, a 24 per cent increase. Since then, e-commerce growth has slowed, though the proportion of retail sales made online remains significantly higher than it was pre-pandemic. But how else did the Covid pandemic permanently alter the global retail landscape? Five years later, we are speaking to a range of businesses, including some that launched in the midst of that tumultuous period, to understand the long-term impact of this pivotal event.Here, we speak with Australian entrepreneur Daniel Kitay whose no-added-sugar confectionary brand Funday benefited from consumers’ increased health-consciousness during Covid. Inside Retail: How did the idea for Funday come about and when did the company launch?Daniel Kitay: Funday launched in April 2021, but the journey started well before that. I was overweight growing up and had a huge sweet tooth, lollies were my weakness. When I cut out sugar, I lost access to the things I loved most. Years later, while working as a lawyer in e-comm retail and later in commercial roles in the vitamins and supplements space, I came across innovative ingredients that could reduce sugar without compromising taste. I started experimenting with candy formulations, and one thing led to another – I quit my job in 2019 to pursue Funday full time. Everyone thought I was crazy, but I was convinced this would change the world. Since then, we’ve grown from a small startup to a recognised brand, expanding from direct-to-consumer into major retailers across Australia and international markets.IR: What impact did the Covid pandemic and lockdowns have on the early days of the business? How did it help; what challenges did it present?DK: Launching during lockdown pushed us to go all-in on e-commerce. Our direct-to-consumer (DTC) site helped us connect directly with customers and iterate fast. A month after launching online, we landed in Chemist Warehouse (500 stores nationally), a crucial channel as people were still visiting pharmacies. It gave us incredible early exposure. Behind the scenes, Covid forced us to optimise every part of the business. We dealt with freight delays, rising costs and unpredictable retail logistics, which, while challenging, taught us to be resourceful and resilient from day one. It was a blessing in disguise.Shopify has been a key part of our online growth, providing advanced analytics and insights for data-driven decisions, the ability to test and scale global opportunities quickly, a streamlined checkout and payment system and integrated subscriptions and loyalty program. This has given us the flexibility and tools needed to scale efficiently. IR: Did the company face an adjustment period after the most extreme restrictions began to be lifted and consumer sentiment stabilised around the end of 2021?DK: Yes, and it brought a huge opportunity. As foot traffic returned, we rapidly expanded into mass grocery, petrol and convenience; channels like Woolworths, Coles, Ampol, Coles Express and thousands more independents and specialty stores. That level of growth brought major pressure, from managing inventory and cash flow to hiring a team, building a team and culture, and implementing systems and processes to support scale. It was a massive adjustment, but it laid the foundation for our next stage of growth.IR: In what ways has the consumer landscape permanently changed since Covid? In what ways has it returned to “normal”?DK: Covid permanently reshaped shopping habits, e-commerce became mainstream across all age groups, which supported our omnichannel approach. At the same time, health became front and centre. Consumers now want indulgence and function, which made our no-added sugar, prebiotic-packed, naturally sweetened lollies an obvious fit. What’s returned to “normal” is people’s appetite for fun and joy; they just want it in a better-for-you format.While consumer buying behaviours will always fluctuate, one thing we have always stayed true to is our approach to the business. We have a strong focus on profitability and controlled spending, building strong relationships with retailers, and a product-first strategy – ensuring our lollies are not just a one-time purchase but a brand customers return to – evidenced by a 60 per cent repeat purchase rate.IR: Can you provide a snapshot of the Funday business today? DK: Today, four years later, we’re stocked in over 7000 stores across Australia and New Zealand, including Woolworths, Coles, Chemist Warehouse, Ampol, Coles Express, On The Run and thousands of independents and health food stores. We’ve gone from four products at launch to a portfolio of 12, and we’re leading our categories in most major retailers. We also sell directly at key events through Shopify POS.In just four years, we’ve become the fastest-growing confectionery brand in Australia and the clear leader in better-for-you candy. We’ve also taken Funday global, with our products now stocked in major retailers across Singapore and Hong Kong, and a recent launch into Woolworths New Zealand. In the Middle East, we’re proud to be on shelf in leading outlets like Carrefour, as demand for better-for-you confectionery continues to grow worldwide.IR: What’s next for Funday in the near future?DK: We’ve seen 114 per cent revenue growth calendar year to date, with plans to grow this into a nine-figure business as we scale our online business and grow in other major export markets. Global demand is growing fast thanks to our strong brand and performance in-market. As the category leader, retailers and consumers look to us for what’s next, which is a big responsibility but one I thrive on. Expect more innovation, bold campaigns, and global partnerships as we bring better lollies to the world.