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

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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

Current price of Bitcoin for July 1, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for July 1, 2026
By Joseph HostetlerJuly 1, 2026
1 hour ago
Current price of Ethereum for July 1, 2026
Personal FinanceEthereum
Current price of Ethereum for July 1, 2026
By Joseph HostetlerJuly 1, 2026
1 hour ago
Top CD rates from major banks July 1, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on July 1, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJuly 1, 2026
1 hour ago
DHL plane being refuelled at airport by man in high-vis jacket
EnergyAviation
The Iran conflict saw jet fuel prices soar—when you use 1.88 million tonnes a year, how you respond really matters (just ask DHL)
By Sam ForsdickJuly 1, 2026
1 hour ago
Current price of oil as of July 1, 2026
Personal FinanceOil
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
1 hour ago
In this photo illustration, a Cisco logo is displayed on a smartphone with Artificial Intellingence (AI) symbols in the background.
AICFO Daily
Cisco is rolling out AI agents to every single one of its 90,000 employees
By Sheryl EstradaJuly 1, 2026
1 hour ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
2 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 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.