Scotts Miracle-Gro, a major player in consumer lawn and garden care, has chosen to pause its direct involvement in the cannabis industry, citing the prolonged lack of federal legalization as a core factor in the decision. The move marks a strategic shift as the company reassesses the timing and viability of its cannabis investments.
At the heart of this change is the company’s decision to transfer control of its cannabis-focused arm, The Hawthorne Collective, to a third party. In return, Scotts has secured a promissory note, maintaining a financial interest without the direct exposure to regulatory risk that comes with active ownership in cannabis-related operations.
This cautious repositioning reflects the broader tension between state-level cannabis markets and the continued federal prohibition. Although the legal cannabis industry has expanded significantly at the state level, the lack of federal reform has limited growth potential, deterred institutional investment, and complicated operations for national companies.
While Scotts Miracle-Gro has not ruled out returning to the cannabis space in the future, this temporary exit suggests that many corporate stakeholders are growing weary of waiting for federal clarity. For now, Scotts will remain on the sidelines—watching, waiting, and reevaluating its long-term strategy in a sector that remains promising but unpredictable.
Dabbin-Dad Newsroom
