It offers babies from 0-6 months a safe space when they sleep in or on an adult bed, on couches or in other places that run a high risk of accidental suffocation.
The concept was developed by Change for our Children's founding director Stephanie Cowan, in response to the risk associated with bed sharing.
Bed sharing often stems from parents' desire to be close to their babies, and is a practice that is particularly common in Maori communities.
Te Puna Oranga secured funding for the Waikato Pepi-pod rollout through Healthy Eating Healthy Action (HEHA) and breastfeeding funds after being inspired by the initial Christchurch Pepi-pod distribution following earthquakes last year.
"In New Zealand we have about 60 babies per year dying from SUDI," said Alys Brown, DHB clinical midwife specialist and lactation consultant.
"Eighty per cent of the babies are Maori and 80 per cent have been exposed to smoking during pregnancy.
"A baby's own infant bed gives them physical protection, but parents must also provide the safe care - on the back, face clear, breastfed and smokefree. It's a package deal," she said.
Eligible families will receive a Pepi-pod package that includes information on breastfeeding and Smokefree practices.
"If whanau understand the issues and take steps to protect their babies, SUDI rates will drop naturally," said Mrs Brown.
"In exchange for the Pepi-pod package, families are asked to help spread education about protecting sleeping babies to others in their networks."
"The intention is to create a sustainable learning process," said Te Puna Oranga general manager Ditre Tamatea.