Scotts Miracle-Gro Bringing Cannabis into the Mainstream
CNN reports of Scotts Miracle-Gro bringing cannabis into the mainstream marks the beginning of a new era in the United States. The 154-year-old company and leader in all things gardening has “quietly entrenched itself in the young and fast-growing industry” according to a CNN report. This has happened mostly through a subsidiary, Hawthorne Gardening Company. Under Hawthorne, the mega-company has acquired hydroponics, lighting, and other suppliers.
Now, it’s actively lobbyting to bring about federal cannabis legalization in the US so it can enter the market full force.
“It’s our belief – and this is not a grand revelation by any stretch – federal legalization is obviously going to happen. The question is when and how,” said Chris Hagedorn, Executive Vice President of Scotts and Division President of Hawthorne.
“When it does, what are the most valuable assets going to be in a post-legalization world? I think anybody who thinks about it for a while says consumer-facing brands (that make and sell cannabis products) will be the most valuable.”
Scotts entry may have been quiet, but it wasn’t a secret. The company recognized the opportunities, but did not want to run afoul of US cannabis laws – particularly those governing stock exchange-listed companies.
But it was obvious in 2011 that the old company was not the conservative one you might have expected. Instead, it was looking at bringing cannabis into the mainstream as soon as possible.
“I want to target the pot market,” said CEO Jim Hagedorn, Chris’ father, back then. “There’s no good reason we haven’t.”
Bringing Cannabis into the Mainstream Through the Back Door – LPC
Well, there was one good reason – the strict US laws. Today, as more and more US states are legalizing cannabis, bringing cannabis into the mainstream doesn’t seem as much of a long shot as it might have back then.
Still, they started small. Scotts purchased indoor gardening products company AeroGrow for US$4.5 million. Then, it spent about US$500 million to create Hawthorne and acquire sector leaders such as General Hydroponics, Gavita, and Botanicare. (Hawthorne now has an R&D facility in BC.)
As with many garden companies, the Hawthorne subsidiary saw boom years during COVID.
“If people are stuck at home, what are they going to do? They smoke a joint and go garden,” Chris Hagedorn said. “And that’s pretty much what happened, so the consumer business (of Scotts) saw a huge boost, and we did as well.”
When you have a Fortune 500 company – and one of the fastest-growing ones at that – bringing cannabis into the mainstream, full legalization can’t be too far behind.
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