Miracle-Gro Potting Mix(R) Crosses $100 Million Sales Threshold
Success demonstrates the ability of Scotts to leverage its brands for continued growth
The Scotts Company (NYSE: SMG), the global leader in the consumer lawn and garden market, today announced that its Miracle-Gro Potting Mix has recently surpassed $100 million in annual revenues for the first time, and remains the fastest growing product in the company's industry-leading portfolio."The success of this product reinforces the strength and appeal of the Miracle-Gro brand," said James Hagedorn, president and chief executive officer of Scotts. "By improving the performance of the product, consumer demand has increased and our team has taken a business that we once considered divesting and turned it into a fast-growing and profitable category for both Scotts and our retail partners."
Launched in 1997, Miracle-Gro Potting Mix was the most successful new product introduction in company history. That record was eclipsed in 2000 when the company introduced Miracle-Gro Garden Soil(R).
Growing Media, a category that was considered a commodity just five years ago, has become a significant contributor to the Company's financial success. Potting mix remains the most important segment within the Scotts' Growing Media business, which last year posted sales of about $300 million. The business was strengthened this year by the introduction of Scotts Lawn Soil(R), a value-added soil designed to improve grass seed germination, which has shown strong acceptance with consumers and retailers.
"Our products are much more than simply dirt in a bag," said Keith Baeder, vice president of marketing for Growing Media. "By reformulating our products for improved performance, we have created value-added soils that are much higher in quality. Consumers know these products perform better and they have responded each year by increasing the amount of Miracle-Gro Potting Mix and Garden Soil they use both inside and outside of the house."
The success of Miracle-Gro Potting Mix demonstrates the ability of Scotts to leverage its brands for continued growth, Hagedorn said. Last year, for example, the introduction of Turf Builder Grass Seed(R) led to a 15-point increase in the Company's market share in grass seed. The Company also continues to leverage the strength of the Scotts brand in its fast-growing lawn service business. Scotts LawnService(R) is expected to report an 83 to 93 percent increase in revenues for fiscal 2002 from $42 million reported last year. Additionally, the Company's Miracle-Gro Select Plants(R) continue to show great results and that business is expected to grow again in 2003.
"By thinking creatively and fully leveraging the power of our brands, Scotts can continue to grow," Hagedorn said. "Value-added products like potting mix and branded plants benefit both our retailers and our consumers, while continuing to enhance shareholder value."
About Scotts
The Scotts Company is the world's leading supplier of consumer products for lawn and garden care, with a full range of products for professional horticulture as well. The company owns the industry's most recognized brands. In the U.S., the company's Scotts(R), Miracle-Gro(R) and Ortho(R) brands are market leading in their categories, as is the consumer Roundup(R) brand which is marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto. In the Europe, Scotts' brands include Weedol(R) Pathclear(R), Evergreen(R), Levington(R) Miracle-Gro(R), KB(R), Fertigene(R) and Substral(R).
Statement under the Private Securities Litigation Act of 1995: Certain of the statements contained in this press release, including, but not limited to, information regarding the future economic performance and financial condition of the company, the plans and objectives of the company's management, and the company's assumptions regarding such performance and plans are forward looking in nature. Actual results could differ materially from the forward looking information in this release, due to a variety of factors, including, but not limited to:
- Adverse weather conditions could adversely affect the Company's sales and financial results;
- The Company's historical seasonality could impair the Company's ability to pay obligations as they come due and operating expenses;
- The Company's substantial indebtedness could adversely affect the Company's financial health;
- Public perceptions regarding the safety of the Company's products could adversely affect the Company;
- The loss of one or more of the Company's top customers could adversely affect the Company's financial results because of the concentration of the Company's sales to a small number of retail customers;
- The expiration of certain patents could substantially increase the Company's competition in the United States;
- Compliance with environmental and other public health regulations could increase the Company's cost of doing business; and
- The Company's significant international operations make the Company more susceptible to fluctuations in currency exchange rates and to the costs of international regulation.
SOURCE The Scotts Company
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