Scotts Miracle-Gro invests $ 150 million in cannabis
A decade away from their initial public declaration to monitor the cannabis industry, Scotts Miracle-Gro is betting even more on weed with its latest investment of $ 150 million.
Intentions were called into question in 2011, Scotts chief executive Jim Hagedorn argued his company needed to start examining weeds for The Wall Street Journal.
“I want to target the pot market,” Mr. Hagedorn said. “There’s no good reason we haven’t.”
What seems so obvious today was a pretty crazy idea back then for the few people who were already interested in big investors and cannabis. At the time, Troy Dayton had just founded The Arcview Group to help organize cannabis investors.
“I remember when this story hit the the Wall Street newspaper ten years ago. We were a year into our ambitious Arcview experiment which hypothesized that investing and seeking legal profits would lead to the legalization of cannabis, ”Dayton said. LA Weekly to receive the news all those years ago. “It was a great moment that convinced us that we were on the right track.
Dayton pointed out how progressive the timing was for someone who had gambled on the concept of large-scale reform and how right Hagedorn was in his predictions about where the medical cannabis industry was heading then.
” How did it go ? Well, cannabis is legal in a lot of places and probably will be all over the United States soon, ”Dayton said. “The big companies played a much smaller role than I expected, but they still played a major role. Of course, much of the moral decay that plagues other large, highly regulated companies is now plaguing cannabis. So this is a mixed bag for sure. Maybe we can do better with psychedelics.
The Hawthorne Collective is the mechanism Scotts will use to create their new piece. He will invest the money in RIV Capital, a company that already has large investments in the space. While there is pretty much every aspect of weed somewhere in the portfolio, some of the more recognizable brands are Gage Cannabis and the data companies Headset and Leaflink.
The Hawthorne Collective has released various details about the deal, but the main thing the money will allow is the launch and expansion of its U.S. cannabis brand and operating platform through RIV Capital. In the process, the company will also become The Hawthorne Collectives’ mechanism to buy out other companies as the market consolidates westward after interstate legalization in the years to come. Obviously, it’s a long-term game, but they’ve been talking about this kind of long-term investment in weeds for ten years now. It is therefore quite normal for the course.
RIV Capital will also have access to the entire Scotts device. As they tap into new cannabis markets and businesses, they will be able to reflect on Scotts’ years of expertise in operations, R&D, sales and distribution. There will be a lot to take away from Scotts in the middle of the supply chain between growing the weed and putting it on the shelves to reach the consumer. However, older lawn grass supplements haven’t faced as many regulatory hurdles as their newer human weed supplements.