As growth slows, the Scotts Miracle-Gro Company is looking to the expanding medical marijuana industry as a new source of revenue.
Scotts’ Chief Executive Jim Hagedorn told the Wall Street Journal that he is exploring medical marijuana and other niche markets to help boost sales. The company currently relies on major retailers like Home Depot, Lowe’s and Wal-Mart for nearly two-thirds of its revenue, but they as the growth of these key retailers has slowed, so has Scotts’ sales.
“I want to target the pot market,” Hagedorn said. “There’s no good reason we haven’t.”
The growth of the market is being driven by increased patient access and the adoption of regulations that facilitate the sale of medical marijuana. The sale of medical marijuana has been legalized in Alaska, Arizona, California, Colorado, Michigan, Montana, Oregon, Washington, New Jersey, New Mexico, Maine, Rhode Island and the District of Columbia.
Hagedorn said that Scotts would probably buy small companies that have already created a line of products for marijuana cultivation, rather than develop its own products.
Raw Story is a progressive news site that focuses on stories often ignored in the mainstream media. While giving coverage to the big stories of the day, we also bring our readers' attention to policy, politics, legal and human rights stories that get ignored in an infotainment culture driven solely by pageviews.
Founded in 2004, Raw Story reaches 5 million unique readers per month and serves more than 19 million pageviews.