The Journal. How Scotts Miracle-Gro's Weed Business Went Up in Smoke
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Aug 25, 2025 Dean Seal, a reporter for WSJ, shares insights into Scotts Miracle-Gro's ambitious but faltering venture into the cannabis industry. He discusses the company's initial excitement during legalization, their shift in strategy toward hydroponics, and the subsequent challenges they faced, including market oversupply and internal resistance. Seal highlights how the journey through this complex industry reflects broader regulatory changes and the difficulties of navigating a market filled with potential yet fraught with obstacles.
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Discovery In An Ace Hardware
- Jim Hagedorn spotted hydroponics in a small Ace Hardware store and asked, “Where is the Scots?”
- That visit planted the idea to enter cannabis supply through acquisitions rather than direct cultivation.
Hawthorne Built Through Quiet Acquisitions
- Scotts formed Hawthorne Gardening Company and acquired hydroponics suppliers like General Hydroponics and Vermicrop.
- They avoided corporate branding and drug-testing rules to ease cultural concerns during deals.
Full-Stack Supplier Became Market-Dependent
- Hawthorne came to dominate cannabis cultivation supplies by selling a full stack of products growers needed.
- That dominance tied Scotts' fortunes closely to the volatile cannabis market.