A decade after their original public statement to keep an eye on the cannabis industry, Scotts Miracle-Gro is betting even more on weed with its latest $ 150 million dollar investment.
Intentions were scaled back in 2011, Scotts CEO Jim Hagedorn argued that his company needed to start considering weed for The Wall Street newspaper.
“I want to aim for the weed market,” Hagedorn said. “There’s no good reason we didn’t.”
What seems so obvious today was a pretty crazy idea back then for the few people who were already dabbling with big investors and cannabis. At the time, Troy Dayton had just founded The Arcview Group to help organize investors in the cannabis industry.
“I remember when this story hit the Wall Street newspaper ten years ago. We were one year in our ambitious Arcview experiment which speculated that investment and the pursuit of legal profit would drive the legalization of cannabis, “Dayton said. LA weekly to receive the news many years ago. “It was a great moment that convinced us that we were on the right track.
Dayton stressed how progressive the moment was for someone who had bet on the concept of money-driving reform and how right Hagedorn was in his predictions about where the medical cannabis industry was headed.
“How did it end? Well, cannabis is legal in many places and it is likely to be legal in the whole United States soon, “Dayton said.” Big companies have played a much smaller role than I would have expected, but they still played a role. important. Of course, much of the moral decay that plagues other large, highly regulated companies now plagues cannabis. So, it’s definitely a mixed bag. Maybe we can do better with psychedelics. “
The Hawthorne Collective is the mechanism Scotts will use to create their new game. It will invest the money in RIV Capital, a company that already has some large investments in the space. While there is almost every aspect of weed somewhere in the portfolio, some of the more recognizable brands are Gage Cannabis and the data companies Headset and Leaflink.
The Hawthorne Collective has released various details on the deal, but the main thing the money will allow is the launch and expansion of its U.S. cannabis operating and brand platform through RIV Capital. In the process, the company will also become The Hawthorne Collectives’ mechanism for acquiring other companies as the market consolidates westward following interstate legalization in the years to come. Obviously a long-term game, but there has been talk of this type of long-term investment in grass for ten years. So this is just the par for the course.
RIV Capital will also have access to the entire Scotts facility. Then, as they tap into new cannabis markets and companies, they will be able to look at Scotts’ years of experience in operations, research and development, sales and distribution. There will be a lot to take away from Scotts in the middle of the supply chain between growing the weed and putting it on the shelves to reach the consumer. However, the old grass supplements for the lawn haven’t faced as many regulatory hurdles as their new grass supplements for people.