Scotts Miracle-Gro Bets Big On Marijuana
Scotts Miracle-Gro, a household name in lawn-care products including insecticides and fertilizers, has decided to double down on marijuana investments. Their big bets, which include the purchase of several specialty fertilizers for marijuana, area already paying off.
As of Wednesday, shares of Scotts had risen a full three percent. At $86.08 they reached their highest share price in 52 weeks, showing a year-to-date rise of 32 percent. This is the result of their recent ventures into the burgeoning legal U.S. marijuana industry.
Scotts now makes the most widely available product targeted to indoor marijuana growers, Blackmagic Brand. Sold across the United States in 165 Home Depot stores, the newly-introduced product already accounts for 10 percent of the company's $3 billion in annual revenue.
Scotts is positioning itself to maximize off nationwide sales as marijuana legalization progresses state-by-state. It all began with their purchase of General Hydroponics a little over one year ago. They brought the then small marijuana nutrients maker, as well as a handful of other brands they proceeded to purchase throughout the year, out from small niche boutique shops and into major gardening stores.
Although the industry is still somewhat taboo, Scotts does not seem to be holding back. Their product line is expanding to include more than fertilizers for marijuana, including lighting and other indoor growing accessories.
Although they may be a new entrant, they have already managed to claim a sizable chunk of the nation's $6 billion legal marijuana industry. Bloomberg estimated their hydroponics business will bring in $250 million this year.