At ds's nursery (not daycare nursery, school nursery) sometimes sweets etc are handed out for birthdays but they do it at the end and they are not allowed to open them until parents have collected them. I know of parents who don't allow them to eat those sweets but maybe give them chocolate buttons at home to replace them. I disagree about sweets not making kids hyper, I think it depends on the child. My ds certainly DOES react and go all hyper when given sweets and I know this because he's had them just at home, in normal situation and then gone all mad, jumping all over me etc and drives me mad . I personally don't have a problem with them occasionally but I do think parents should be able to decide.