Scotts Miracle-Gro CEO announces cannabis business plans

During a recent interview on CNBC with Jim Cramer, Scotts Miracle-Gro CEO Jim Hagedorn revealed that the company is largely distancing itself from its cannabis operations. Hagedorn stated, “We burned $2 billion there,” indicating the significant financial losses the company has incurred in this sector. As a result, Scotts Miracle-Gro plans to transfer its cannabis investments to an independent partner, maintaining equity in the new entity while hopeful for future developments.

Earlier this month, the fertilizer company communicated its decision to shift its cannabis growing and distribution ventures to an “independent strategic partner.” This change comes as the cannabis industry struggles with slow federal legalization processes that have hindered growth. However, Hagedorn noted that the company retains an option to reacquire the cannabis business or its assets if federal regulations become more favorable.

In addition to these developments regarding cannabis, Hagedorn emphasized the strength of Scotts Miracle-Gro’s core gardening business. He noted that consumer demand is shifting toward promotions, with retailers leveraging Scotts Miracle-Gro products to drive foot traffic. Advertising strategies are effective, contributing to the company’s market share growth. Hagedorn mentioned, “Customers want a bargain, but they love gardening,” highlighting the demand for affordable gardening solutions amidst rising prices.

In March, the company appointed Martha Stewart as its “Chief Gardening Officer,” a move that Hagedorn praised for enhancing brand visibility. He remarked, “It’s really fun working with her, and she’s totally with it,” referring to Stewart’s broad appeal and marketing prowess. Stewart’s involvement is seen as a strategic effort to attract more consumers to gardening products in an increasingly competitive market.

Overall, while Scotts Miracle-Gro steps back from its cannabis ambitions, it appears focused on strengthening its core business and leveraging partnerships to adapt to market changes.