The medical marijuana industry is generating big headlines again this week, thanks to this report from the Wall Street Journal:
Scotts Miracle-Gro Co. has long sold weed killer. Now, it’s hoping to help people grow killer weed.
In an unlikely move for the head of a major company, Scotts Chief Executive Jim Hagedorn said he is exploring targeting medical marijuana as well as other niches to help boost sales at his lawn and garden company.
“I want to target the pot market,” Mr. Hagedorn said in an interview. “There’s no good reason we haven’t.”
The story also quotes See Change President Kris Lotlikar, who gives some context based on our research:
Sixteen states have legalized medical marijuana, the largest being California and Colorado. The market will reach $1.7 billion in sales this year, according to a report by See Change Strategy LLC, an information data services company.
While the report focuses on revenue from growers and dispensaries, Kris Lotlikar, president of See Change, said the market for companies selling hydroponic equipment and professional services is also thriving.
“We see very good growth for these types of companies as the medical-marijuana business grows,” he said.
Scotts Miracle-Gro is taking a forward thinking approach to the medical marijuana market, but they’re really just one of many companies with the relevant experience to explore new opportunities in this industry. As the industry continues to grow, it will be interesting to observe how new participants approach the market.