Scotts’ 2013 Spend Threatened by Perpetual Winter Weather
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Last year, homeowners in the Northeast and Midwest were cutting grass in early March. This year, snow covered lawns past St. Patrick’s Day.
That has the lawn-and-garden market looking at a weak start in 2013.
Scotts Miracle-Gro, the market leader, hiked U.S. ad spending 50% last year and absorbed commodity costs without raising prices. Yet 2012 retail sales rose only 2% and reported sales were flat as retailers trimmed inventory, Chairman-CEO Jim Hagedorn told analysts in December. At least Scotts gained two percentage points of market share. Never one to mince words, Mr. Hagedorn said, “If it got to the point where advertising didn’t mean shit, then I guess we’ll say “then don’t waste the money.’ But I don’t think that’s where we’re at.”
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