Columbus, Ohio
December 22, 1999The Scotts Company today reported record U.S.
market development results for the calendar year-to-date period ended September 30, 1999.
"For the third year in a row, Scotts' successful consumer pull marketing strategy has
been the
primary driver of growth in the overall lawn and garden categories in which we compete,''
said
Charles M. Berger, Scotts Chairman, President and Chief Executive Officer. "The 1999
U.S.
market results show that we were successful again in driving solid double-digit category
growth
across the board in lawn fertilizers, garden fertilizers and potting soils.''
Scotts reported that the lawn fertilizer category grew by 19% industry-wide, crossing the
half-billion dollar mark for the first time, with nine-month sales of approximately $560
million. The category leader in total sales was the Scotts® family of brands, which grew
by 21%.
The garden fertilizer category grew by 12% industry-wide to a record nine-month level of
approximately $220 million. The category leader in total sales was Scotts' Miracle-Gro®
and other Scotts' brands, which grew by 17%.
The potting soil category grew by 18% industry-wide to a record nine-month level of
approximately
$265 million. The category leader in total sales was Scotts' portfolio of brands, which
grew by
27%. Scotts' growth was led by its Hyponex® brand as well as by the very successful
second year of growth for the new Miracle-Gro® brand line of value-added growing media
products.
"These latest figures indicate that the U.S. lawn and garden industry, and Scotts in
particular, have significant market momentum as we approach the key selling period for the
2000 lawn and garden season,'' said Mr. Berger.
Scotts said they believe there are two primary factors that have led to the industry's
high growth
rates in recent years. First, U.S. economic and demographic trends are leading consumers
to spend more on lawn and garden care. These trends include robust growth in new
homebuilding, steadily increasing discretionary income, the baby boom generation entering
the peak gardening age bracket and increasing interest among younger age brackets in home
landscaping and gardening.
The other major factor has been Scotts' consumer pull marketing strategy that reaches the
consumer directly, to create strong demand that "pulls'' products from the factory to
consumers.
This strategy was successfully implemented by Scotts by conducting extensive consumer
research, applying the research to educational media advertising, increasing the overall
advertising support and simplifying product packaging and product lines.
The figures reported above for category growth and Scotts' sales growth within categories
have
been independently developed through point-of-purchase audits conducted by Triad Systems
Corporation, a leading market research organization. The September year-to-date figures
encompass the dominant period of lawn and garden product sales in the U.S.
For more information on The Scotts Company including access to the Company's SEC filings,
please visit the Company's investor relations web site at www.smgnyse.com.
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 turf care and horticulture as well.
The Company
owns what are by far the industry's most recognized brands. In the U.S., consumer
awareness of
the Company's Scotts®, Miracle-Gro® and Ortho® brands outscores the nearest competitors
in
their categories by several times, as does awareness of the consumer Roundup® brand which
is
marketed in North America and most of Europe exclusively by Scotts and owned by Monsanto.
In
the U.K., Scotts' brands include Weedol® and Pathclear®, the top-selling consumer
herbicides;
Evergreen®, the leading lawn fertilizer line; the Levington® line of lawn and garden
products; and
Miracle-Gro®, the leading plant fertilizer. The Company's leading brands in continental
Europe
include KB® and Fertiligene® in France and NexaLotte® and Celaflor® in Germany.
Company news release
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