It caught nearly everyone by surprise, but it’s true. The company’s top dog, Scotts Chief Executive Jim Hagedorn, says that he’s looking into targeting medical marijuana to help boost sales at his lawn and garden company.
Our Orange County medical marijuana attorneys understand that this recognition, by such a high-powered company, may benefit the medical marijuana industry. If the owners of home-based products don’t see anything wrong with growing medical marijuana, why should the government? This recognition from Scotts Miracle-Gro may be a sign, a sign that the use of medical marijuana may one day be accepted in deserving household across the nation.
“I want to target the pot market,” Mr. Hagedorn said. “There’s no good reason we haven’t.”
Scotts sales increase by 5 percent last year to nearly $3 billion. The company, that is based out of Marysville, Ohio, relies on three retail stores to make the majority of their sales — Home Depot Inc., Lowe’s Cos. and Wal-Mart Stores Inc. Since the slumped economy is causing consumers to hold on tightly to their money and these corporations are halting the building of new stores, Scotts is looking for smaller pockets of growth, like the marijuana market, to increase in their sales.
Currently, there are 16 states that have legalized medical marijuana, with California and Colorado being the largest.
A report on revenue from growers and dispensaries, by See Change Strategy LLC, an information data services company, concludes that the market for companies selling hydroponic equipment and professional services is alive and thriving.
“We see very good growth for these types of companies as the medical-marijuana business grows,” said Kris Lotlikar, president of See Change.
Mr. Hagedorn is serious about increasing sales, no matter how small. To target marijuana growers, Scotts says they would likely buy niche dirt companies. Companies that already exist instead of creating its own line of newly branded products.
Enforcement officers have found Scotts products in a number of recent marijuana raids. Mr. Hagedorn is thrilled about it, claiming that it’s a good sign of brand awareness. He does fear that some growers will be reluctant to use a mainstream product.
Before this recent plan, Scotts wouldn’t even have considering pursuing a business plan or a product line that generated less than $10 million a year in revenue. That’s not the case anymore. Since the medical marijuana industry has grown so large, the company has altered their strategy.
“We can’t operate our business like that anymore,” said Mr. Hagedorn.
The Los Angeles medical marijuana lawyers at the CANNABIS LAW GROUP are offering legal assistance to medical marijuana dispensaries and collectives throughout the Los Angeles area. Call 949-375-4734 for a confidential consultation to discuss your rights.
High Hopes at Miracle-Gro in Medical Marijuana Field, by Dana Mattioli, The Wall Street Journal
More Blog Entries:
Miss America Favors Medical Marijuana in California, Marijuana Lawyer Blog, June 26, 2011
Montel Williams to Open Medical Marijuana Dispensary in Sacramento, California, Marijuana Lawyer Blog, June 22, 2011
Case Dropped Against Oldest-Running Southland Medical Marijuana Dispensary, Marijuana Lawyer Blog, June 10, 2011