The Chief Executive of Scotts Miracle-Gro is hoping that the medical marijuana market will boost his company’s sales, The Wall Street Journal reports. Jim Hagedorn told the newspaper that he wants to “target the pot market.”
While the company’s sales rose 5 percent last year, to $2.9 billion, Hagedorn sees slow growth as consumers continue to be cautious about spending. With 16 states having legalized marijuana, including California and Colorado, the medical marijuana market will reach $1.7 billion in sales this year, according to the article. Of that total, $1.3 billion is expected to come from California, with an $244 million from Colorado.
Hagedorn said he thinks some marijuana growers won’t want to use a mainstream product such as Miracle-Gro. Instead of creating its own line of products for marijuana growers, the company is likely to buy existing niche dirt companies.
Marijuana use is still illegal under federal law. Warning letters from the federal government about medical marijuana laws have prompted several states to start reevaluating their laws. The recent letters from U.S. attorneys indicate that people involved in the growing, dispensing and regulating of medical marijuana have the potential to be prosecuted—even if they are following state laws. One such warning letter prompted Washington state Governor Chris Gregoire to veto a proposal to create licensed marijuana dispensaries.
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