Scotts Miracle-Gro developed a Super Bowl ad for the first time in the company’s history, as it appears to build on the momentum it gained during the coronavirus pandemic, CEO Jim Hagedorn told CNBC on Wednesday.
“Last year we got about 20 million new customers in Covid’s time and the goal is to keep them and grow the market,” Hagedorn said of “Power Lunch.” “We think we can, and the Super Bowl is part of the reach we want: to reach people who were there and convince them to stay in.”
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 Tampa Bay Buccaneers. The ad is 45 seconds long and features numerous high-profile celebrities 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 isn’t the only brand to have a Super Bowl commercial for the first time this year, and many of the newbies have also seen their businesses boosted by the pandemic. Chipotle, used car salesman Vroom, and e-commerce company Mercari are all newcomers to advertising at the NFL’s biggest game.
Scotts Miracle-Gro saw an influx of customers during the Covid crisis when people stayed at home and started gardening. Hawthorne Gardening, its cannabis subsidiary, was also helped by the pandemic, Hagedorn said. Covid has made people smoke more weed. That’s for sure.’
Based in Marysville, Ohio, Scotts Miracle-Gro had record sales in fiscal 2020, reporting first-quarter profit on Wednesday. The company has typically incurred losses in those quarters due to the seasonality of the lawn and garden industry.
Revenue for the quarter ended January 2 was $ 748.6 million, up 105% year-over-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 were up 5.1% on Wednesday to $ 240.17 and recorded an all-time intraday high of $ 250 each. The stock is up almost 94% in the past 12 months.
CEO is confident in even more growth
Close-up of Miracle-Gro Potting Mix logo bag for gardening, San Ramon, Calif., May 19, 2020.
Smith collection | Gado | Archive photos | Getty Images
Hagedorn said he sees a sustained tailwind for Scotts Miracle-Gro in the two main business segments. “According to our polls, 85% of people who participated in lawn and garden last year plan to do it again, and a large group of them plan to do it even more,” said the CEO. “We are really comfortable growing the business this year,” he added.
And on the cannabis side, Hagedorn said Hawthorne Gardening “really does catch fire.” First quarter sales of $ 309.4 million increased 71% year over year, building on sales growth of 61% in fiscal 2020.
“We are innovating. Much of that growth is taking place in areas where we use a lot of technology, such as LED indoor lighting,” said Hagedorn, adding that he is optimistic about the prospect of further recreational legalization across the country. U.S
Voters in New Jersey agreed to legalize marijuana in the state in November’s election, and advocates are pushing for legalization in Pennsylvania and New York. “When you see Pennsylvania, New Jersey, and New York disappear, that’s the size of the state of California,” Hagedorn said. “California is nearly half of our business, so the East Coast is really happening and it’s great to see.”