Scotts Miracle-Grow Likes Weed

Jun 15, 2011
J. Webster
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I thought Scotts Miracle Grow (SMG) was all about limiting the growth of weeds in your garden and lawn and enabling your grass to grow greener. Well, it is, but now they’re targeting a different type of weed and green.

Recently, Scotts Miracle-Grow reduced its full year earnings prediction based on bad weather, and the stock took a hit. And now they want to take a different kind of ‘hit’. They want to target a new market. The Scotts CEO talked about exploring the pot market. As in the ‘medical marijuana market. CEO Jim Hagedorn had this to say:

“I want to target the pot market,” Hagedorn told the Wall Street Journal in an interview published Tuesday. “There’s no good reason we haven’t.”

Companies are struggling to find ways to grow with the consumer cutting back in may areas. So Scotts is looking for niche markets for growth and one growing niche is the pot growers market, with certain states seeing particularly higher growth.

I wonder if what the CEO’s personal take on the medical marijuana market is? I think we can safely assume he’s all for the legalization of marijuana across the country. Can’t we? It would potentially mean a lot to the bottom line of his company – more money, more money.

Top US markets for medical marijuana, forecast 2011 sales

California: $1.3 billion
Colorado: $244 million
Michigan: $53 million
Montana: $44 million
Washington: $29 million

Source: See Change Strategy LLC

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