Yahoo Finance Executive Editor Brian Sozzi sits down with ScottsMiracle-Gro CEO Nate Baxter to discuss how the company is adapting to a younger demographic that prefers low-maintenance, natural spaces over the perfectly manicured, weed-free grass of previous generations.
I look at my brother who's a couple years younger and he's he's not like me. He's okay with the lawn just existing, being what it is. It drives me up the freaking wall because I know he's never going to do the lawn like I do. Like, is that a problem for Scotts?
It is. It it it well, it's a problem and an opportunity, right? So, our core consumer that has been with us for decades, you know, they're homeowners, uh or renters who care about their lawn. Um, they are dedicated just like you. And they care about weeds, they don't want them, they want the perfect lawn. So
what we are seeing with the next generation of consumer is a real interest in going natural. Uh less of an interest, you know, they they don't mind an occasional dandeline in their lawn. So we are going to meet those consumers where they are. In fact, we have a whole new line called OM Scott. They're in recyclable paper bags. Um there's a lawn food, just a pure straight up all-natural lawn food, and then we have a whole bunch of native grass seeds which have become popular. And actually, I did it at my house. at my house right, I would say immediately around the house, I have our proper um sun and shade grass seed.
But as it sort of peters off into the woods, I I did the edges with um our our sheep fescue. And I really like it. No maintenance, you don't have to water it, you don't have to fertilize it. It looks great, comes back every year. Uh it does occasionally have weeds, which if you if you care, you have to go pick out by hand. Um but we're finding a lot of younger consumers are gravitating towards those products because cuz good enough.
It's it's not about I would say the legacy consumer, it's all about the aesthetics. It's the lawn, it's the perfectly manicured roses if I sort of harkened back to like our grandparents uh era. The next gen consumer, they just want a space that's fun and safe and good.
Sometimes they don't even want a lawn. I mean, they're just putting rocks down in their yard or or just asphalting it over. It's really weird.
I know, it makes me sad.
Or in out west, we're seeing, which I think is criminal, we're seeing uh municipalities pay people to take their lawn out and put in fake fake grass, plastic, you know?
But they're turf, like the turf?
Yeah, so in a world of microplastics, it feels like putting down plastic turf, which it it also they create heat islands, it can be dangerous for your kids. Um and we are doing a lot of work uh out in the southwest with consumers to understand because xeriscaping is a thing, um and lawns are maybe not as sustainable out there. So that's why we're bringing native grass seeds into the mix because in regions like those, you can plant these native grasses again, low or no maintenance. Um green is good. It absorbs heat, um it cools your property uh and it obviously, you know, contributes to the environment being a living thing versus just covering your space in rocks or plastic turf.
