Scotts Miracle-Gro has developed a Super Bowl commercial for the first time in the company’s history as it appears to capitalize on the momentum it gained during the coronavirus pandemic, CEO Jim Hagedorn told CNBC on Wednesday.
“We had about 20 million new customers during Covid last year and the goal is to keep them and grow the market,” Hagedorn told Power Lunch. “We think we can do that, and the Super Bowl is part of the goal we want – to reach the people who were and convince them to stay.”
The Scotts Miracle-Gro commercial is scheduled to run during the second quarter of Sunday’s NFL championship game between the Kansas City Chiefs and the Tampa Bay Buccaneers. The ad is 45 seconds long and features many famous stars, such as entrepreneur Martha Stewart, actor John Travolta and NASCAR driver Kyle Busch. It focuses on the lawn and garden segment of the company.
Scotts Miracle-Gro is not the only brand this year to advertise for the first time in the Super Bowl and many of the new entrants have seen their business stimulated by the pandemic. Chipotle, second-hand car retailer Vroom and e-commerce company Mercari are all newcomers to advertising during the NFL’s biggest game.
Scotts Miracle-Gro saw an influx of customers during the Covid crisis as people stayed home and took over gardening. Hawthorne Gardening, its cannabis subsidiary, was also helped by the pandemic, Hagedorn said. “Covid made people smoke more pots. That’s for sure.”
Scotts Miracle-Gro, based in Marysville, Ohio, recorded record sales in fiscal year 2020 and reported first-quarter first-quarter profit on Wednesday. The company usually suffered losses in those quarters due to the seasonality of the lawn and garden industry.
Sales for the quarter ended January 2 were $ 748.6 million, up 105% year-on-year. Scotts Miracle-Gro posted a diluted earnings per share of 43 cents for that quarter, compared to a loss of $ 1.28 per share in the same quarter last year.
Shares of Scotts Miracle-Gro rose 5.1% to $ 240.17 on Wednesday and hit a $ 250 intraday high. The stock has grown by almost 94% in the last 12 months.
CEO confident in future growth
Close-up of the bag with the Miracle-Gro Potting Mix logo for gardening, San Ramon, California, May 19, 2020.
Smith Collection | Gado | Archive Photos | Getty Images
Hagedorn said he sees continuous tailwinds for the Scotts Miracle-Gro in the two main business segments. “Our surveys show that 85% of people who attended the lawn and garden last year plan to do it again, and a large group of them plan to do it even bigger,” the CEO said. “We are very comfortable that we can grow the business this year,” he added.
As for cannabis, Hagedorn said Hawthorne Gardening “really catches fire.” Sales in the first quarter, of $ 309.4 million, increased by 71% year-on-year, based on revenue growth of 61% in fiscal year 2020.
“We’re innovating. Much of this growth is happening in areas where we put a lot of technology, for example, LED lighting for indoor growth,” Hagedorn said, adding that he is optimistic about the prospect of recreational legalization around the world. US
New Jersey voters have agreed to legalize marijuana in the state in the November election, and lawyers are pushing for legalization in Pennsylvania and New York. “If you see Pennsylvania, New Jersey and New York going, it’s as big as the state of California,” Hagedorn said. “California is almost half of our business, so the East Coast is really happening and it’s great to see.”