Scotts Miracle-Gro developed a Super Bowl ad for the first time in the company’s history, as it appears to increase the momentum it gained during the coronavirus pandemic, Jim Hagedorn told CNBC on Wednesday.
“Last year we got about 20 million new customers at Covid and the goal is to keep them and grow the market,” Hagedorn told Power Lunch. “We think we can do it, and the Super Bowl is part of the scope we want: to reach the people who were there and convince them to stay.”
The Scotts Miracle-Gro commercial will be released during the second quarter of Sunday’s NFL game between the Kansas City Chiefs and the Tampa Bay Buccaneers. The ad lasts 45 seconds and features numerous well-known celebrities, such as businesswoman Martha Stewart, actor John Travolta and NASCAR driver Kyle Busch. It focuses on the lawn and garden segment of the company.
Scotts Miracle-Gro isn’t the only brand this year to publish a Super Bowl announcement for the first time, and many of the new entrants have also seen their business boosted by the pandemic. Chipotle, used 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 when people stayed home and picked up gardening. Hawthorne Gardening, its cannabis subsidiary, also received help from the pandemic, Hagedorn said. “Covid has made people smoke more pots. That’s for sure.”
Scotts Miracle-Gro, based in Marysville, Ohio, recorded record sales in its fiscal year 2020 and on Wednesday reported for the first time a first-quarter profit. Typically, the company has experienced losses in these quarters due to the seasonality of the lawn and garden industry.
Sales for the quarter ended Jan. 2 were $ 748.6 million, up 105% from the previous year. Scotts Miracle-Gro experienced diluted earnings per share of 43 cents during the quarter, compared to a loss of $ 1.28 per share the same quarter last year.
Shares of Scotts Miracle-Gro rose 5.1% on Wednesday to $ 240.17 and recorded an all-time intraday high of $ 250 per piece. Shares have risen nearly 94% in the last twelve months.
CEO confident of more growth ahead
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 continued tailwinds for Scotts Miracle-Gro in its two main business segments. “Our polls show that 85% of people who took part in the lawn and garden last year intend to do it again, and a large group of these countries make it even bigger,” he said. say the CEO. “We are very pleased to grow the business this year,” he added.
And when it comes to cannabis, Hagedorn said Hawthorne Gardening “is on fire.” First-quarter sales of $ 309.4 million were up 71% year-over-year, based on 61% revenue growth in fiscal 2020.
“We are innovating. Much of this growth is taking place in areas where we are putting a lot of technology, for example, LED lighting for indoor crops,” said Hagedorn, who added that he is optimistic about the prospect of greater recreational legalization worldwide. WE
New Jersey voters agreed to legalize marijuana in the state in the November election and advocates are pushing for legalization in Pennsylvania and New York. “If you look at Pennsylvania, New Jersey and New York, 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 it.”