MARYSVILLE, OH — The Scotts Miracle-Gro Company (NYSE: SMG) announced Nov. 11 it's in discussions with several of its largest retail partners in the United States to provide private label lawn fertilizer and growing media products for fiscal 2009 and possibly beyond. The discussions stem from the recent announcement by Spectrum Brands (NYSE: SPC) that it intends to exit those segments of the category.

"We believe we are uniquely positioned to leverage our supply chain and sales force to help our retailers meet all of their needs," said Jim Hagedorn, chairman and chief executive officer. "The discussions we have been having with a variety of retail partners have been productive and, we believe, could be mutually beneficial to both them and Scotts Miracle-Gro."

Spectrum Brands in its Fourth Quarter 2008 Financial Results report said a sluggish housing market, tight inventories at retailers, low levels of foot traffic and unprecedented commodity cost increases caused its growing products business to be a drag on the profitability of its Home & Garden Business segment as well as its consolidated results for fiscal year 2008.

"In spite of intense efforts over the past year to restore profitability by raising prices and introducing higher margin, value-added products, the margins and return on invested capital on what have been essentially private label products are not at minimally acceptable levels. Two of the key components in the production of growing products, DAP and potash remain at historically high levels. And, more importantly, the level of volatility and therefore, unpredictability, in these input costs coupled with the extremely seasonal nature of this business and its significant working capital demands has created a level of risk that the management team and Board has deemed unacceptable," said the report.

By the end of fiscal year 2008 the company’s board of directors approved the shutdown of the growing products portion of its Home & Garden Business segment, which includes fertilizers, enriched soils, mulch and grass seed. This decision was made only after attempts by the company to sell this segment, in whole or in part, were unsuccessful. The company believes these attempts were unsuccessful due to the current credit market environment.

“Spectrum posts huge loss, will shutter unit it couldn't sell,” The Capital Times, Madison, WI, Nov. 11