How Scotts Miracle-Gro's Weed Business Went Up in Smoke

This episode of The Journal, guest-hosted by Oyin Adedoyin, explores Scotts Miracle-Gro's venture into the cannabis industry. Faced with a struggling gardening market after the 2008 recession, Scotts Miracle-Gro, led by CEO Jim Hagedorn, saw an opportunity in the emerging cannabis market. The company indirectly entered the cannabis sector by acquiring hydroponics companies under the subsidiary, Hawthorne Gardening Company, managed by Chris Hagedorn. Despite initial success, the cannabis market faced challenges due to oversupply and declining consumption post-pandemic, leading to financial losses for Hawthorne. The podcast further discusses the obstacles posed by federal regulations on marijuana and Hagedorn's advocacy for federal legalization, including his attempts to influence the Trump administration. Ultimately, Scotts Miracle-Gro is looking to sell Hawthorne, but with a potential buy-back option if federal legalization occurs, highlighting the risks and uncertainties in the cannabis industry.