Scotts Miracle-Gro CEO says cannabis business is 'mostly off the table'
"We burned $2 billion there," Hagedorn said. "So...we're going to put the business into another entity, and we'll have equity in that. And we'll hope for the best."
Earlier in April the fertilizer maker announced it would transfer its investments in cannabis growing and distribution to "an independent strategic partner." Management said in the press release that cannabis business broadly has been hampered by a slow legalization process at the federal level. However, Scotts Miracle-Gro indicated it "retains an option to reacquire" the business or its assets should changes in legislation help advance the industry.
Hagedorn reflected on his company's core gardening business, saying consumers want promotions, and retailers are using Scotts Miracle-Gro products to boost foot traffic. Advertising is also working well, he continued, and he maintained that the company is gaining share. Customers "want a bargain, but they love gardening."
Scotts Miracle-Gro in March named Marth Stewart as its "Chief Gardening Officer," and Hagedorn boasted the hospitality entrepreneur has been a boon for the company.
"It's really fun working with her, and she's totally with it," he said. "She's reinvented herself so many times…one of the greatest women of all time."
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