Scotts Miracle-Gro has developed a Super Bowl ad for the first time in the company’s history because it wants to build the momentum it gained during the coronavirus pandemic, CEO Jim Hagedorn told CNBC on Wednesday. .
“We gained about 20 million new customers in Covid last year and the goal is to retain them and grow the market,” Hagedorn said on “Power Lunch.” “We think we can do it, and the Super Bowl is part of the achievement we want – to reach out to people who have been and convince them to stay in.”
Scotts Miracle-Gro’s ad will be presented during the second quarter of the NFL Championship game between the Kansas City Chiefs and Tampa Bay Buccaneers. The ad is 45 seconds long and features numerous celebrities such as entrepreneur Martha Stewart, actor John Travolta and NASCAR driver Kyle Busch. It focuses on the company’s lawn and garden segment.
Scotts Miracle-Gro is not the only brand to host a Super Bowl ad for the first time this year, and many of the new entrants have also seen their businesses strengthened by the pandemic. Chipotle, the dealer in used cars, Vroom and the e-commerce company Mercari, are all newcomers to the NFL’s biggest game.
Scotts Miracle-Gro saw an influx of customers during the Covid crisis when people stayed home and picked up gardening. Hawagedorne Gardening, its subsidiary for cannabis, was also helped by the pandemic, Hagedorn said. “Covid made people smoke more pot. That’s for sure.”
Scotts Miracle-Gro, based in Marysville, Ohio, made record sales in the 2020 financial year and made a profit for the first time on Wednesday. The company usually experienced losses in the quarters due to the seasonality of the lawn and garden industry.
Sales for the quarter ended January 2 were $ 748.6 million, a 105% increase over the previous year. Scotts Miracle-Gro posted diluted earnings per share of 43 cents for the quarter compared to a loss of $ 1.28 per share in the same quarter last year.
Shares of Scotts Miracle-Gro rose 5.1% on Wednesday to $ 240.17, reaching an intraday high of $ 250 apiece. The share has risen by almost 94% over the past 12 months.
CEO confident in more growth
Bag close-up with logo of Miracle-Gro Pot mix for gardening, San Ramon, California, May 19, 2020.
Smith Collection | Gado | Archive Photos | Getty Images
Hagedorn said he sees ongoing tailwinds for Scott’s Miracle-Gro in its two main business segments. “Our poll shows that 85% of the people who participated in lawn and garden last year intend to do it again, and a large group of them want to do it even bigger,” the CEO said. “We are really comfortable that we can grow the business this year,” he added.
And on the cannabis side, Hagedorn said Hawthorne Gardening “really catches fire.” Sales in the first quarter of $ 309.4 million increased 71% year-on-year, building on 61% growth in fiscal 2020 revenue.
“We are innovating. A lot of the growth is taking place in areas where we use a lot of technology, for example LED lighting for indoor growth,” Hagedorn said, adding that he is optimistic about the prospect of further legalization across the country. USA
New Jersey voters agreed to legalize marijuana in the state during the November election, and advocates are pushing to legalize it in Pennsylvania and New York. “If you see Pennsylvania, New Jersey and New York going, it’s just as big as the state of California,” Hagedorn said. “California is almost half of our business, so the East Coast is just happening and it’s great to see.”