It looks like these days, Scotts Miracle-Gro is interested in more than healthy lawns and gardens. Apparently, CEO Jim Hagedorn said he wants the company to target the pot market by acquiring "niche dirt companies" used by medical marijuana growers.
Hagedorn seems to have taken up the adage "if you can't beat them, join them." The CEO wasn't blowing hot air into the dark when he talked about the plans. Scotts Miracle-Gro completed market research on the idea and surprise, surprise, many of its products have turned up in pot-growing sieges.
For a company that specializes in lawn and garden care, stepping up to the highly lucrative medical pot growing market should be the natural thing to do. Hagedorn couldn't agree more. He told the Wall Street Journal:
"I want to target the pot market...There's no good reason we haven't."
Actually, there are probably several reasons why Scotts Miracle-Gro hasn't joined in the medical marijuana market. Perhaps one reason is the company had reservations that its reputation would fall a few notches if it entered the pot market. However, business is business. To grow and develop is what a company needs to do to survive and thrive.
Some reports estimate the growing market is expected to reach at least $1.7 billion in sales this year alone! Scotts Miracle-Gro should take a bite out of that revenue stream if possible. Even though Scotts brings in $3.1 billion a year, it doesn't hurt to expand business when there's a definite need for the product!
Readers, share your thoughts. Is Scotts Miracle-Gro making the right business decision?