Scotts Miracle-Gro Invests $150 Million to Pursue New Areas in Cannabis for Subsidiary – Patent Forecast Can Do Just That!

Scotts Miracle-Gro (SMG) has had a part in the cannabis industry since 2014 through its subsidiary Hawthorne Gardening Company who specializes in cannabis gardening and hydroponics. In August 2021, SMG announced its cannabis investment entity known as The Hawthorne Collective and wasting no time invested $150 million in RIV Capital – a cannabis investment and acquisition firm based in Toronto – through The Hawthorne Collective. RIV Capital will seek minority cannabis investments in companies not being sought already by Hawthorne Gardening. 

SMG is quickly becoming one of the largest players in cannabis. Hydroponics are widely used in the cannabis industry and have become a main focus of SMG’s. Not only does SMG have hydroponics technology through its subsidiary Hawthorne Gardening, it also owns an additional handful of hydroponics companies like General Hydroponics and Botanicare. SMG’s subsidiaries boast over 90 patent assets in combination relating to aspects of hydroponic gardening. Hawthorne Gardening alone has patented technology for lighting, fertilizers, and the design of many hydroponics components with an open continuation practice allowing for the capture and protection of the evolution of the technology. Now that the US has legal cannabis in more than half of its states and more being incorporated with time, SMG’s investment appears well-timed. The Hawthorne Collective should be looking to add patent assets for technologies it doesn’t own to its portfolio through its acquisitions. Patent Forecast’s proprietary patent analysis tools allow for quick white space exploration and assists investors with making data-driven business decisions. 

For starters, Hawthorne Gardening and its subsidiaries don’t appear to have technology for cannabinoid extraction. Lucky for them, there are cannabis companies focusing specifically on that such as Nextleaf Solutions who owns 13 patent assets obtained in the last 6 years. If Hawthorne wants to stay away from touching actual cannabis products, as it seems it does based on its prior dealings, it could look to acquiring companies developing devices to use with cannabis but not for growing cannabis. One such avenue would be humidity-controlled containers for storing cannabis flowers in. There is so much that Hawthorne Gardening could explore in the world of cannabis. Patent Forecast will be keeping an eye out for where and who RIV Capital invests into. Stay updated by signing up for the Cannabis Patent Forecast®.