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Behind The Brand: Baby Loves Sleep

Sleepless nights with a newborn turned out to be a good thing for Malou Villarreal – and the inspiration behind her unique sleep suits and baby wraps business Baby Loves Sleep. Here, Malou explains the birth of her wondrous collection helping babies sleep easy….

Tell us a bit about Baby Loves Sleep...


Behind the Baby Loves Sleep:

Can you explain how the Sleep Hugs sleep suit works?

And the Koalas Hugs wraps?

You discovered some interested baby sleep facts during research and development. Can you explain?

Tell us about the Startle Reflex?

How does the Baby Loves Sleep KOALA HUGS wrap help newborns?

How does the SLEEPY HUGS sleep suit help transitioning babies?

Explain the unique features of the HANDS IN & OUT sleep sack?

Tell us about the toddler sleep phase?

What makes Baby Loves Sleep products different?

On a practical level, how does the collection help baby?

Your products have great endorsements

Why do parents love your designs?


Baby Loves Sleep is the home of award-winning baby sleep solutions and products that have one mission: to help babies and their parents get their sleep back. 

All Baby Loves Sleep products were created by Australian Mum and Founder Malou Villarreal, starting with the uniquely designed Sleepy Hugs sleep suit, born out of the frustration and desperation that resulted from the sleep deprivation she experienced with her own son and so many new parents with young babies are experiencing

Can you explain how the Sleep Hugs sleep suit works?

The Sleepy Hugs sleep suit is for babies who have started to roll and swaddling is no longer safe. It helps babies gently transition out of swaddling, whilst providing the security babies need to combat the startle reflex.

And the Koalas Hugs wraps?

Malou went on to extend the Sleepy Hugs range to accommodate the growing needs of babies to cover all ages and developmental stages (from newborn to toddlerhood), including the innovative Koala Hugs wraps, a clever newborn wrap with built in arm pockets that removes the guesswork of swaddling for new parents and guarantees a perfectly inescapable wrap every time.

Sleeping baby dressed in Baby Loves Sleep Swaddle and Sleepsuit for comfort and security.

You discovered some interested baby sleep facts during research and development. Can you explain?

Yes during my research, I learnt a few crucial things about babies and sleep. I discovered that not all babies enjoy the feeling of having arms restricted in a tight swaddle. I also learned that most babies naturally sleep with their arms up. While this is mostly true, as babies grow and develop, they start to move around during their sleep cycles and they don't always sleep in one position.

I then began to question whether keeping my baby tightly wrapped would lead to restricting his development and natural tendency to move their arms around, and that perhaps this had become the cause of his constant waking.

Babies have different needs for their sleep as they pass through the different stages of their development. Some babies like to be swaddled for months on end, while others constantly wriggle their arms free and others still roll over early but cannot sleep without some restriction to their ‘startle reflex’.

Baby napping peacefully in Baby Loves Sleep Swaddle and Sleepsuit with cosy fit.

Tell us about the Startle Reflex?

Babies while asleep are in a state of dream sleep (REM). The state of dream sleep occurs in about 50% of a newborn's sleep. During this sleep, your baby's eyes dart back and forth under their eyelids, while the rest of their body is very still. They will have the occasional twitch and may do little jerks in their sleep known as the startle reflex (also known as the 'moro' reflex).

Relaxed to Hysterical in .6 seconds

The startle reflex (or 'moro' reflex) is one of many reflexes that babies are born with and is part of their defence 'fight or flight' mechanism. It is an automatic reaction to a loud noise, or the sensation of falling and causes the baby to be startled and flail their arms sidewards/upwards then immediately bringing their arms to their chest in the foetal position. So if that baby is falling asleep and suddenly has a startle reflex, it will go from relaxed to hysterical in .6 seconds and when their arms move about, they no longer feel the safe environment of the womb - the edges of their little world.

Good News! It goes away 

The good news is that the startle reflex usually disappears after around 3 or 4 months, but this may be later for some babies. Hence, why we are encouraged to swaddle babies from birth until the startle reflex has disappeared.

Bad News: Swaddling No Longer Works

Swaddling is wonderful for babies during the first few months, until they no longer want that restriction or until it is no longer safe. Many babies develop Houdini skills. Unfortunately at this stage many babies are not ready for full freedom.

As a result, I tried many different products available in the market. Many of which didn’t work, and while some did seem to work but only for a short time. This is when I decided to design my own solution by combining all the things that worked into one sleep suit that is now known as the Sleepy Hugs.

Adorable infant face in Baby Loves Sleep Swaddle and Sleepsuit close-up view.

How does the Baby Loves Sleep KOALA HUGS wrap help newborns?

The KOALA HUGS newborn wrap features built-in arm pockets to gently cocoon baby’s arms and keep them secure inside the swaddle wrap. The ‘startle reflex’ is calmed and their sleep remains deep and restful. It’s the ultimate swaddle wrap for new parents, because it removes the guesswork out of swaddling and is guaranteed to wrap the perfect swaddle every time.

How does the SLEEPY HUGS sleep suit help transitioning babies?

The SLEEPY HUGS sleep suit gives comfort and security when babies have outgrown swaddling, while helping them to cope with the ‘startle reflex’, allowing them to sleep longer. It’s the gentle approach for transitioning out of the swaddle.

Explain the unique features of the HANDS IN & OUT sleep sack?

The HANDS IN & OUT sleep sack has the much loved features of the SLEEPY HUGS, and has clever fold-over wrist cuffs allowing baby’s hands to be kept snugly inside the sleep suit for warmth and security, or fold back to let their hands come out and self-soothe.

Tell us about the toddler sleep phase?

The COZY TODDLER sleep suit is the ultimate toddler sleep suit! This uniquely designed onesie features a full inner leg zipper for easy nappy changes without opening the entire suit and clever fold over cuffs on the hands and feet so your toddler can safely walk and play with them open and be snuggly warm all night when they are folded closed. Bonus, it’s designed as a single size to fit toddlers aged from 1 year to 3+ years old, so you won’t need to buy a new one each time you child has a growth spurt. 

2 kids wearing Baby Loves Sleep Swaddle and Sleepsuit for bedtime comfort.

What makes Baby Loves Sleep products different?

All Baby Loves Sleep products have a unique point of difference; every single product has been created to solve a problem. The SLEEPY HUGS and the KOALA HUGS both have patent applications pending in Australia, New Zealand, USA, Canada and the UK. 

The SLEEPY HUGS fills a gap in the market where other baby products fall short. There is no other product in the market that solves the swaddle transitioning problem the way that the SLEEPY HUGS does. 

The KOALA HUGS is the only baby wrap for newborn that guarantees an escape-proof yet comfortable swaddling experience for newborns.

On a practical level, how does the collection help baby?

The SLEEPY HUGS provides a safe and gentle approach to transitioning out of the swaddle without the cold turkey experience, resulting in babies and their parents getting more sleep.

The KOALA HUGS removes the guesswork out of swaddling for first time parents or carers and guarantees a perfectly inescapable wrap every time, calms the startle reflex resulting in babies sleeping longer.

Baby peacefully sleeping in a basket with Baby Loves Sleep Swaddle and Sleepsuit.

Your products have great endorsements…

The BABY LOVES SLEEP products have been endorsed by industry health professionals, are promoted by many baby sleep consultants and carries the tick of approval from Baby Safety Australia/INPAA, www.babysafety.com.au.

All Baby Loves Sleep products are made using only natural cotton materials as well as a certified GOTS organic range. In addition, all my product collection designs are limited edition and contemporary with the modern Mum in mind.

Our products have also been selected as FINALIST in the Mother & Baby Awards (Australia), Made for Mums Awards (UK) and Junior Design Awards (UK).

Why do parents love your designs?

Parents and their babies love Baby Loves Sleep products because they really work and everyone is getting more sleep!

I started my business after the birth of my second son. There’s many challenges being a Mum looking after little humans. Add in the challenges of running a business and in my case a 4-day corporate job. It helps to have a supportive husband who is also a very hands-on Dad. Being part of a business network group has also contributed to much of my success, having access to other small business owners that are in similar situations also helps speed up the learning process.

Want to see the products up close? Come to our next baby expo by visiting our Sydney baby expoMelbourne baby expo and Brisbane baby expo pages.

The brand begins with a snug swaddle wrap (such as the “Koala Hugs” newborn swaddle) designed to gently contain your baby’s arms and calm their startle reflex in the first months. As your baby begins rolling or showing signs of breaking out of the swaddle, the Sleepy Hugs sleepsuit provides more freedom by allowing arm movement while still offering a womb-like sense of security.

You’ll know it’s time to move from the swaddle to the Sleepy Hugs sleepsuit once your baby starts rolling or regularly wriggling out of their swaddle—both signs they’re ready for more movement. Most babies reach this stage around 3 to 6 months, though it can vary depending on their growth and development. The Baby Loves Sleep sleepsuit is specially designed to give little ones the freedom to move their arms safely while still feeling snug and secure. For the best fit and comfort, always measure your baby’s arm span rather than relying only on age.

The Sleepy Hugs includes a roomy sack for healthy hip development, fully enclosed arms (helpful for babies with eczema or who scratch themselves), a bottom-opening zipper for easier nappy changes, and breathable organic cotton fabric to avoid overheating. The brand also emphasises measuring arm span and choosing a snug fit so the suit offers the right level of "hug" and security.

Baby Loves Sleep provides a size guide based on arm span rather than just age, because fit in the arms is key for safety and comfort. They also publish TOG ratings (for example, 0.7 TOG for “All Seasons”) to help you match the sleepwear to room temperature and climate. Choosing the right size and TOG helps your baby stay comfortable, avoid overheating, and get the most benefit from the design.

Baby Loves Sleep products are crafted from soft, premium fabrics like organic cotton and a touch of elastane, so a gentle wash routine helps them last longer. Always zip the suit closed before washing, use a mild detergent, and choose cold or lukewarm water. Skip the bleach and tumble dryer—these can damage the fibres and reduce softness. Instead, lay the sleepsuit flat to dry in the shade. Be sure to check each garment’s care label, as following the recommended instructions keeps the material breathable, the fit perfect, and your baby comfortable night after night.

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