• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

Yes, Onion, Koala dominates the baby-changing-station market

By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
August 13, 2014, 5:00 AM ET
Courtesy: Koala

The cover piece this past week in The Onion’s fake Sunday magazine, the Weekender, was all about the stranglehold that Koala Kare has on the market for diaper-changing stations in public restrooms. “Can Anyone Challenge Koala for Baby Changing Station Dominance?” the headline asked.

As always with the Weekender, there was no actual article, just the cover. So we thought we’d provide the article. The answer is that, yes, someone can challenge Koala, and some do, but only on the margins. Koala invented the market for diaper stations in the 1980s, and it does in fact dominate that market. Overwhelmingly.

“Koala is the Kleenex of baby-changing stations,” says Jerry Beaver, a part owner of Babystations.com, which sells the items. “People just call baby-changing stations ‘Koalas.'” But Koala is far more dominant in its market than Kleenex is in the tissue market. Beaver says that about 95% of the changing stations sold on his site are made by Koala. Other distributors give somewhat lower numbers, but none give a number below 80%.

The man now in charge of Koala, Brendan Cherry, won’t give market-share figures (or any other figures, such as sales), but he says Koala competes with about six or eight other firms. All of them, though, produce changing stations as a sideline to their other businesses. Foundations, a company based in Medina, Ohio, makes changing stations as part of its line of child-oriented products for institutions such as hotels and child-care centers. Its main business seems to be cribs (nobody from Foundations could be reached for comment). Newell Rubbermaid makes changing stations, too, but as Cherry put it, “It’s a good brand, but they’re not in the diaper-changing business, they’re in the plastic-molding business.” Newell Rubbermaid’s changing station is just one of hundreds of products including pens, wastebaskets, and ice trays.

Up until the mid-’80s, it was exceedingly difficult for parents (at the time, that mostly meant mothers) to find a good place to change a diaper. In that parental distress, Jeff Hilger, then a medical-device salesman near Minneapolis, saw opportunity. He and a couple of friends decided that the best solution was a fold-out device that could be mounted to a wall.

With that idea and $15,000 in capital, Hilger and his tiny company, then called JBJ Industries, changed the public restroom forever. And in so doing, they also changed American shopping and dining habits. No longer did parents have to beg off an evening out because of the effective impossibility of toting their babies along. The diaper-changing station was a response to the increasing number of dual-income households, and working parents’ increasing desire to be with their kids as much as possible.

Now 68 and something of a racehorse mogul in Minnesota, Hilger hesitates before finally allowing: “Well, yes. We changed the public restroom. We got the babies off the floor.”

He means that literally. When he first started marketing the product to restaurants and retailers, he passed out brochures depicting a family posing with a baby in the arms of its mother. That went nowhere. Business owners just couldn’t see the use case for changing stations. Hilger says he was trying to sell the device to “men in their 50s who never changed a diaper in their life.”

A new brochure — this one depicting a woman on her hands and knees changing her baby’s diaper on a disgusting bathroom floor– did the trick. “We had to make them feel guilty,” Hilger says.

Unknown-1

Customers piled in. “McDonald’s called me right away,” Hilger says. In short order came Target (TGT), Burger King (BKH), and a host of other similarly large chains. “We were making millions of dollars, at a company with only nine people,” Hilger says.

After that, the product — called the Koala Bear Kare Baby Changing Station — more or less sold itself. For a paltry amount of money, business owners could vastly improve their customers’ shopping experiences. The changing station has since become a must-have for any business where a baby-toting parent might be a customer.

In 1991, JBJ added a new product: a baby protection seat, to store babies while parents used restroom facilities. In 1993, the company changed its name to Koala Corporation. It went public soon after. Hilger retired in 1996, and Koala went on to make a series of unwise acquisitions. The company was delisted from the Nasdaq in 2003. The baby-station business was sold to Bobrick Washroom Equipment in 2004.

That sale might have saved the brand. Bobrick, the company that introduced the first patented soap dispenser about a century ago, has kept the Koala business basically independent, and has kept the company’s focus on making life easier for parents in public spaces. It sells booster seats, high-chairs, and similar products.

There is still plenty of room for growth, says Cherry, who is a Bobrick vice president and general manager of the Koala subsidiary. In facilities where the women’s restroom has a changing station, the men’s room often doesn’t (there is actually a proposed law before the California legislature to address this problem.) The private company’s growth remains “robust,” Cherry says. What once “was a luxury has now become an expected fixture.”

About the Author
By Dan Mitchell
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
5 hours ago
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
CryptoSam Bankman-Fried
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
By Camila Grigera NaonJune 9, 2026
7 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
7 hours ago
The entrance to a U.S. Immigration and Customs (ICE) detention facility
North AmericaDepartment of Homeland Security
Texas ICE facility spent $11.5 million on guards, medical services, transportation and meals weeks before the camp even held detainees, GAO finds
By Michael Biesecker, Ryan J. Foley and The Associated PressJune 9, 2026
7 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
8 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
8 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
12 hours ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.