Scotts Miracle-Gro Company

Last updated

The Scotts Miracle-Gro Company
Company type Public
NYSE:  SMG
S&P 400 Component
Industry Manufacturing
Founded1868;156 years ago (1868)
FounderOrlando Scott
Headquarters Marysville, Ohio, U.S.
Key people
O. M. Scott, Founder
James Hagedorn, CEO and Chairman of the Board
Michael Lukemire, COO and President
ProductsProducts for lawn and garden care
RevenueDecrease2.svg US$ 2.66 billion (2018) [1]
Decrease2.svgUS$64 million (2018) [1]
Number of employees
6,500
Website scottsmiraclegro.com

The Scotts Miracle-Gro Company is an American multinational corporation headquartered in Marysville, Ohio, where O.M. Scott began selling lawn seed in 1868. [2] The company manufactures and sells consumer lawn, garden and pest control products, and soilless indoor gardening equipment. [3] In the U.S., the company manufactures Scotts, Miracle-Gro and Ortho brands. The company on the other hand also markets consumer Roundup.

Contents

In 2021, despite billions of dollars in awards to Roundup's victims and their next-of-kin, [4] [5] Scotts Miracle-Gro was supportive of their marketing arrangement. [6] [ better source needed ]

History

Scotts' headquarters in Marysville Scotts Miracle Gro HQ Marysville1.jpg
Scotts' headquarters in Marysville

Scotts was founded in 1868 by Orlando M. Scott as a premium seed company for the U.S. agricultural industry. In the early 1900s, the company began a lawn grass seed business for homeowners, and in 1924, became the first company to ship grass seed products directly to stores. Prior to 1924, Scotts products were only available through the mail. [7] By 1940, Scotts's sales had reached $1,000,000 and the company had 66 associates.

In 1971, privately owned O.M. Scott & Sons was purchased by ITT, an international business conglomerate. Fifteen years later, in 1986, Scotts became an independent company again through a leveraged buyout. [2] In 1992, Scotts became a publicly traded company with an initial offering of $19.00 a share and three years later merged with Miracle-Gro, a gardening company, to create the Scotts Miracle-Gro Company. [7]

During the 2012 United States presidential election, the company endorsed the election of Republican Party candidate Mitt Romney. [8]

Sale of bird seed in 20052008

On January 27, 2012, Scotts Miracle-Gro pled guilty in federal court and paid $4.5 million in fines for selling 73 million units of bird seed between November 2005 to March 2008 that was coated with pesticide known to be deadly to birds and fish. Pesticides were added to protect the product from insects during storage, including Storcide II, that was clearly marked as extremely toxic to birds. Records show that Scotts Miracle-Gro's own experts warned of the risk in the summer and fall of 2007 but they continued to sell the product until March 2008. In 2008, Scotts Miracle-Gro also falsified pesticide registration numbers required by the U.S. Environmental Protection Agency on its products. [9]

On September 7, 2012, a federal court ordered Scotts to pay a $4 million fine and perform community service for 11 criminal violations of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). In a separate agreement with the Environmental Protection Agency, Scotts agreed to pay more than $6 million in penalties and spend $2 million on environmental projects. According to the Justice Department, both the criminal and civil settlements are the largest under FIFRA to date. [10]

GM Grass

Scotts has developed several genetically modified grasses, including herbicide-tolerant Kentucky bluegrass and creeping bentgrass. In 2007, the U.S. Department of Agriculture fined Scotts Miracle-Gro $500,000 when DNA from genetically modified creeping bentgrass was found within relative plants of the same genus, ( Agrostis ), [11] and other native grasses up to 21 km (13 mi) from the test sites. [12]

Peat bogs in the UK

In 2001, Scotts was involved in a major dispute with nature conservation bodies and the UK Government about the future of several peat bogs in the north of England. Under pressure from the European Union the UK government moved to declare a number of peat bogs, covering an area of 4,097 acres (1,658 ha) in Yorkshire and Cumbria, as Special Areas of Conservation, thus ending Scotts ability to harvest peat for their garden products. During the course of the dispute Nick Kirkbride, the then managing director of Scotts in Britain, described the peat bogs as having "no more conservation interest than a ploughed field". [13] The peat bogs were eventually saved from further destruction by the payment by the UK government of compensation of £17 million to Scotts for loss of the right to extract peat. [14]

Lunarly Subscription Service

In July 2018, Scotts collaborated with BuzzFeed Inc. to develop a subscription service called Lunarly, which mails crystals, house plants, and other wellness items based on the lunar calendar. [15] The joint effort with BuzzFeed's Product Labs, facilitated by ad agency MullenLowe U.S., is an attempt to make gardening popular among millennial women, thereby opening up avenues for the 150+ year-old company to make inroads with younger consumers. [16] While reviews of the self-care boxes have been mixed, [17] they have repeatedly sold out with over $1 million in incremental sales as of May 2019. [16]

Mergers and acquisitions

Brands

United States

  • AeroGrow
  • Black Magic
  • Blossom
  • Botanicare LLC
  • Bovung
  • Can-Filters
  • Earthgro
  • Ecoscraps
  • Gavita
  • General Hydroponics
  • Greendigs
  • Greenlight
  • Hawthorne Gardening Company
  • Hyponex
  • Lunarly
  • Miracle-Gro
  • Ortho
  • Ortho Elementals
  • Osmocote
  • Scotts
  • Scotts Lawn Service
  • Supersoil
  • TOMCAT
  • Vermicrop Organics
  • Whitney Farms

Outside the U.S.

  • Gavita Holland B.V.
  • Pathclear
  • Scotts Ecosense
  • Weedol

Related Research Articles

The Monsanto Company was an American agrochemical and agricultural biotechnology corporation founded in 1901 and headquartered in Creve Coeur, Missouri. Monsanto's best-known product is Roundup, a glyphosate-based herbicide, developed in the 1970s. Later, the company became a major producer of genetically engineered crops. In 2018, the company ranked 199th on the Fortune 500 of the largest United States corporations by revenue.

Roundup is a brand name of herbicide originally produced by Monsanto, which Bayer acquired in 2018. Prior to the late-2010s formulations, it used broad-spectrum glyphosate-based herbicides. As of 2009, sales of Roundup herbicides still represented about 10 percent of Monsanto's revenue despite competition from Chinese producers of other glyphosate-based herbicides. The overall Roundup line of products, which includes genetically modified seeds, represented about half of Monsanto's yearly revenue. The product is marketed to consumers by Scotts Miracle-Gro Company. In the late-2010s other non-glyphosate containing herbicides were also sold under the Roundup brand.

<span class="mw-page-title-main">Glyphosate</span> Systemic herbicide and crop desiccant

Glyphosate is a broad-spectrum systemic herbicide and crop desiccant. It is an organophosphorus compound, specifically a phosphonate, which acts by inhibiting the plant enzyme 5-enolpyruvylshikimate-3-phosphate synthase (EPSP). It is used to kill weeds, especially annual broadleaf weeds and grasses that compete with crops. Its herbicidal effectiveness was discovered by Monsanto chemist John E. Franz in 1970. Monsanto brought it to market for agricultural use in 1974 under the trade name Roundup. Monsanto's last commercially relevant United States patent expired in 2000.

<span class="mw-page-title-main">Lawn</span> Area of land planted with grasses and similar plants

A lawn is an area of soil-covered land planted with grasses and other durable plants such as clover which are maintained at a short height with a lawn mower and used for aesthetic and recreational purposes—it is also commonly referred to as part of a garden. Lawns are usually composed only of grass species, subject to weed and pest control, maintained in a green color, and are regularly mowed to ensure an acceptable length. Lawns are used around houses, apartments, commercial buildings and offices. Many city parks also have large lawn areas. In recreational contexts, the specialised names turf, pitch, field or green may be used, depending on the sport and the continent.

<i>Agrostis</i> Genus of flowering plants in the grass family Poaceae

Agrostis is a large and very nearly cosmopolitan genus of plants in the grass family, found in nearly all the countries in the world. It has been bred as a GMO creeping bent grass.

<span class="mw-page-title-main">Syngenta</span> Global provider of agricultural science and technology

Syngenta AG is a provider of agricultural science and technology, in particular seeds and pesticides with its management headquarters in Basel, Switzerland. It is owned by ChemChina, a Chinese state-owned enterprise.

<i>Agrostis stolonifera</i> Species of grass

Agrostis stolonifera is a perennial grass species in the family Poaceae. It is widely used as turf for golf courses.

<span class="mw-page-title-main">Pioneer Hi Bred International</span> American producer of hybrid seeds for agriculture

Pioneer Hi-Bred International, Inc. is a U.S.-based producer of seeds for agriculture. They are a major producer of genetically modified crops with insect and herbicide resistance.

Ortho- is a Greek prefix meaning “straight”, “upright”, “right” or “correct”.

<span class="mw-page-title-main">Dicamba</span> Chemical compound used as herbicide

Dicamba is a selective systemic herbicide first registered in 1967. Brand names for formulations of this herbicide include Dianat, Banvel, Diablo, Oracle and Vanquish. This chemical compound is a chlorinated derivative of o-anisic acid.

Sun Gro Horticulture is a producer of peat moss and bark-based growing mixes for professional use in North America. It is also a distributor of fertilizer, water-soluble fertilizer, perlite, and vermiculite.

Charles Martin Berger (1936–2008) was a business executive who created several well-known advertising campaigns for Heinz ketchup. He worked for Heinz for 32 years before moving on to become CEO of Scotts Miracle-Gro Company. Berger died in 2008 at the age of 72 after a protracted illness.

<span class="mw-page-title-main">Bayer</span> German multinational pharmaceutical and biotechnology company

The Bayer AG is a German multinational pharmaceutical and biotechnology company and is one of the largest pharmaceutical companies and biomedical companies in the world. Headquartered in Leverkusen, Bayer's areas of business include: pharmaceuticals, consumer healthcare products, agricultural chemicals, seeds and biotechnology products. The company is a component of the EURO STOXX 50 stock market index.

Scotts LawnService was a subdivision of the Scotts Miracle-Gro Company, an American multinational corporation headquartered in Marysville, Ohio. It was founded with the acquisition of Emerald Green Lawn Care in 1998 and was merged into TruGreen in 2016.

Gardens Alive!, Inc. was a privately owned multi-title catalog company founded in 1984. It sells garden and lawn supplies, specializing in organic products under its namesake catalog. The company has expanded by aggressively purchasing other catalog companies, including expansion into gift and games after acquiring the assets of defunct catalog company BlueSky Brands in 2008. As of 2010, the company has annual sales of approximately $170 million, 60 percent of which was from garden-related business.

Monsanto was involved in several high-profile lawsuits, as both plaintiff and defendant. It had been defendant in a number of lawsuits over health and environmental issues related to its products. Monsanto also made frequent use of the courts to defend its patents, particularly in the area of agricultural biotechnology. Bayer acquired Monsanto in 2018, and the company has since been involved in litigation related to ex-Monsanto products such as glyphosate, PCBs and dicamba. In 2020 it paid over $10 billion to settle lawsuits involving the glyphosate based herbicide Roundup.

<span class="mw-page-title-main">Hawthorne Gardening Company</span>

Hawthorne Gardening Company, formed in October 2014, is The Scotts Miracle-Gro Company's subsidiary for cannabis growers and one of the first major investments by a major United States corporation in the cannabis industry.

Glyphosate-based herbicides are usually made of a glyphosate salt that is combined with other ingredients that are needed to stabilize the herbicide formula and allow penetration into plants. The glyphosate-based herbicide Roundup was first developed by Monsanto in the 1970s. It is used most heavily on corn, soy, and cotton crops that have been genetically modified to be resistant to the herbicide. Some products include two active ingredients, such as Enlist Duo which includes 2,4-D as well as glyphosate. As of 2010, more than 750 glyphosate products were on the market. The names of inert ingredients used in glyphosate formulations are usually not listed on the product labels.

Johnson v. Monsanto Co. was the first lawsuit to proceed to trial over Monsanto's Roundup herbicide product causing cancer. The lawsuit alleged that the exposure of glyphosate, an active ingredient in the Roundup product, caused Dewayne "Lee" Johnson's non-Hodgkin lymphoma. In a landmark verdict, Monsanto's purchaser Bayer Corporation was ordered by a San Francisco jury to pay $289m in punitive damages and compensatory damages. Monsanto, and after June 2018 Bayer, appealed the verdict several times. The award was cut to $78 million, then reduced to $21 million after appeal.

TruGreen, originally known as ChemLawn and later as TruGreen ChemLawn, is the largest lawn treatment company in the United States. The company was founded in 1969 and provides lawn care and tree and shrub care treatments on a subscription basis. The treatments and services include weed killing, moss suppression, pesticides, aeration, overseeding, and fertilizing. The company does not offer lawn mowing service nor sod as a sellable service. The TruGreen brand is also used for lawn services in Canada through a Mississauga, Ontario–based company named Greenlawn Ltd. that does business as TruGreen. The TruGreen brand, under Servicemaster is also used in the United Kingdom.

References

  1. 1 2 "Scotts Miracle-Gro Revenue 2006-2019 | SMG". www.macrotrends.net. Archived from the original on May 7, 2019. Retrieved May 7, 2019.
  2. 1 2 Jaffe, Thomas (November 16, 1998). "Lean green machine". Forbes. Archived from the original on March 4, 2016. Retrieved May 7, 2019.
  3. Carrie Ghose (November 23, 2020). "Scotts Miracle-Gro completes acquisition of company that makes home-grow kits". BizJournals.com (Columbus). Archived from the original on September 27, 2022. Retrieved August 19, 2022.
  4. David Barboza (August 2, 2001). "The Power of Roundup; A Weed Killer Is a Block For Monsanto To Build On". The New York Times . Archived from the original on August 19, 2022. Retrieved August 18, 2022.
  5. Telford, Taylor (July 26, 2019). "Judge cuts $2 billion award for couple with cancer to $86.7 million in Roundup lawsuit". The Washington Post . Archived from the original on December 4, 2020. Retrieved July 27, 2019.
  6. ScottsMiracle-Gro Announces its Support Regarding Bayer's, May 27, 2021, archived from the original on August 19, 2022, retrieved August 19, 2022
  7. 1 2 "Scotts.com: About Us". The Scotts Miracle-Gro Company. Archived from the original on February 11, 2011. Retrieved September 19, 2007.
  8. "Miracle-Gro goes public in backing Romney". August 9, 2012. Archived from the original on September 24, 2015. Retrieved July 6, 2015.
  9. Hunt, Spencer (January 27, 2012), "Scotts to pay $4.5 million in fines over false paperwork, toxic birdseed", The Columbus Dispatch , Columbus, OH, archived from the original on August 25, 2023, retrieved October 1, 2022
  10. United States. Environmental Protection Agency. "Scotts Miracle-Gro Will Pay $12.5 Million in Criminal Fines and Civil Penalties for Violations of Federal Pesticide Laws" Archived June 9, 2013, at the Wayback Machine "Press Release. 7 September 2012
  11. Watrud LS, Lee EH, Fairbrother A, Burdick C, Reichman JR, Bollman M, Storm M, King G, Van de Water PK (October 2004). "Evidence for landscape-level, pollen-mediated gene flow from genetically modified creeping bentgrass with CP4 EPSPS as a marker". Proc. Natl. Acad. Sci. U.S.A. 101 (40): 14533–8. Bibcode:2004PNAS..10114533W. doi: 10.1073/pnas.0405154101 . PMC   521937 . PMID   15448206.
  12. Pollack, Andrew (July 6, 2011). "U.S.D.A. Ruling on Bluegrass Stirs Cries of Lax Regulation". New York Times . Archived from the original on January 20, 2016. Retrieved February 26, 2015.
  13. Charles Clover, ed. (April 15, 2001). "Supplier fights to keep mining at peat bogs". Archived from the original on January 24, 2018. Retrieved April 5, 2018 via www.telegraph.co.uk.
  14. Jeffery, Simon (February 27, 2002). "Bogs to be preserved for peat's sake". The Guardian . Archived from the original on September 27, 2016. Retrieved September 19, 2016.
  15. Smith, Gerry (November 16, 2018). "BuzzFeed Will Tell You What Millennials Want, for a Fee". Bloomberg. Archived from the original on September 4, 2019. Retrieved March 15, 2020.
  16. 1 2 "MullenLowe Mediahub In the News". MullenLowe U.S. May 13, 2019.
  17. Sung, Morgan (March 21, 2019). "Lunarly is the self-care box for people who are into crystals". Mashable. Archived from the original on March 17, 2020. Retrieved March 15, 2020.
  18. "Lawn Device Startup Bought". ocbj.com. November 14, 2016. Archived from the original on November 29, 2016. Retrieved November 28, 2016.
  19. Company (The), Scotts Miracle-Gro (March 2, 2016). "ScottsMiracle-Gro Completes Minority Investment in Bonnie Plants". GlobeNewswire News Room (Press release). Retrieved November 18, 2020.
  20. Konczal, Jeffry (September 5, 2017). "Scotts finalizes $250M European business sale as company focus turns inward". Columbus Business First. Archived from the original on September 7, 2017. Retrieved May 8, 2019.
  21. Cherney, Max (April 30, 2005). "Scotts Miracle-Gro to Acquire Hydroponics Supplier Sunlight Supply". MarketWatch. MarketWatch. Archived from the original on April 18, 2018. Retrieved April 17, 2018.
  22. Castelli, Giovanni (March 22, 2019). "ScottsMiracle-Gro sells TruGreen stake to retire debt". Lawn & Landscape. Retrieved May 8, 2019.
  23. "Scotts Miracle-Gro completes acquisition of company that makes home-grow kits". www.bizjournals.com. Archived from the original on November 23, 2020. Retrieved November 23, 2020.
  24. "ScottsMiracle-Gro Acquires Luxx For $215 Mln". www.nasdaq.com. Archived from the original on January 5, 2022. Retrieved January 5, 2022.