Let $\mathcal{C}$ and $\mathcal{D}$ be symmetric monoidal categories and assume that the symmetric monoidal product $\otimes_{\mathcal{D}}$ on $\mathcal{D}$ preserves colimits in both variables. Then the Day convolution $*$ defines a symmetric monoidal structure on the category of functors $Fun(\mathcal{C},\mathcal{D})$.

(The obligatory nlab link and here a treatment for $\infty$-categories. In fact nlab only considers the case that $\mathcal{D}$ is the category we're enriched in, so $\mathit{Set}$ for the purpose of this question.)

There is also a (much easier to define) symmetric monoidal structure on $Fun(\mathcal{C},\mathcal{D})$, given by 'point-wise multiplication' using $\otimes_\mathcal{D}$. (This does not use the symmetric monoidal structure on $\mathcal{C}$.)

I have two questions about these structures:

- Does $\otimes_{\mathcal{D}}$ distribute over $*$, i.e. do we have $F\otimes (G* H) \cong (F\otimes G) * (F \otimes H)$ ?

More precisely, does $Fun(\mathcal{C},\mathcal{D})$ have the structure of a bimonoidal category/rig category, where $*$ is '$+$' and $\otimes$ is '$\times$'? If not, are they compatible in some other sense?

- Is the Day convolution of two symmetric monoidal functors again symmetric monoidal?

This is easy for the other product $\otimes_{\mathcal{D}}$, which in fact induces a symmetric monoidal structure on the category of symmetric monoidal functors $Fun^{\otimes}(\mathcal{C}, \mathcal{D})$. Combined the question would be whether this extends to a bimonoidal structure using the Day convolution.

I believe both of the answers to be yes when $\mathcal{C}$ is the category of oriented $1$-bordisms between $0$-manifolds (aka the free symmetric monoidal category on one dualisable object). So I was wondering if this in general gives a bimonoidal structure on the category of TFTs. This would be nice because the definition of the direct sum of two TFTs is kind of awkward and written out it looks a lot like the Day convolution. (One defines $(F\oplus G)(M) := F(M) \oplus G(M)$ for connected objects $M$ and then uses the fact that every manifold decomposes uniquely as the disjoint union of its connected components.) On the other hand it might only be this nice property of the bordism category, namely having a 'unique prime decomposition', that makes the result work in this case.

**Edit:** There was a mistake concerning which way the distributivity is supposed to go, I hope this is more clear now.