The Scotts Company today reported record U.S. lawn and garden market growth and its market share gains for the first calendar quarter period ended March 31, 2000.

"For the fourth year in a row, Scotts' successful consumer 'pull' marketing strategy has been the primary driver of growth for Scotts' brands and the overall lawn and garden categories in which we compete,'' said Charles M. Berger, Scotts Chairman and Chief Executive Officer. "U.S. consumer purchases for the first three months of calendar year 2000 show that we were once again successful in driving solid double-digit category growth across the board in lawn fertilizers, insecticides, garden fertilizers and potting soils.''

Scotts reported that the lawn fertilizer category, its largest individual sales category, grew by 20% during the period. It is significant that this category has continued to grow at an accelerating pace; growth was at 19% in 1999, and 14% in 1998. The Scotts family of lawn fertilizer brands grew by 26% during the quarter, which resulted in widening its category market share lead.

Insecticides, potting soils and garden fertilizers showed strong growth rates of 21%, 16% and 17% respectively, over sales for the first three calendar months of 1999. As a result, Scotts increased its category leading market share in every one of these categories.

"Although these latest figures only represent the results of the first three months of calendar year 2000, they do indicate that the U.S. lawn and garden industry and Scotts' brands in particular, are enjoying significant market momentum going into the remainder of the 2000 lawn and garden season,'' said Mr. Berger.

Scotts believes there are two primary factors that have led to the lawn and garden 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.

The second major factor has been Scotts' consumer "pull'' strategy -- using intensive consumer advertising, to create strong demand that 'pulls' products through retail outlets to consumers' lawns and gardens. This strategy, which utilizes informative and creative executions based on extensive consumer research, is supported by heavy media budgets, which are in excess of Scotts' market shares to provide future growth.

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 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 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 owned by Monsanto. Scotts has entered into an agreement with Monsanto to be the exclusive marketing agent for consumer Roundup® worldwide. 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
N2713