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The Bubble Continues to Burst in the Cannabis Industry as Pick and Shovel Plays Flop on Earnings Reports

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Hawthorne, Scott’s Miracle-Gro’s weed division, tanks on sales and revenue numbers.

As GMR reported financial numbers last week for the cannabis industry, Hawthorne Gardening Co., the subsidiary responsible for marijuana cultivation under Scotts Miracle-Gro, saw its sales further diminish in the quarter ending on July 1st. Based in Ohio, Scotts experienced a 6% drop in overall sales, amounting to $1.12 billion. This decline was primarily attributed to a substantial 40% reduction in sales at Hawthorne, as outlined in an official press release.

The revenue stemming from Hawthorne’s sales of hydroponicshorticulture, and lighting supplies for the cannabis sector has displayed a consistent downward trend over the past two years.

During the most recent quarter, Hawthorne’s sales totalled $93.4 million, marking a significant decrease from the $154.5 million recorded during the same period in the previous year.

In stark contrast, this figure pales compared to the $421.9 million achieved during the equivalent period two years ago.

In the initial nine months of fiscal year 2023, Hawthorne’s sales have plummeted by a notable 42%, resulting in a total of $317.6 million.

Jim Hagedorn, the CEO and Chair of Scotts, expressed concerns regarding the company’s financial situation in an earnings call. He highlighted that the anticipated returns from investments in Hawthorne, the cannabis industry, and the expansion of operational capabilities to meet pandemic-induced demand have not materialised as expected. Consequently, the company has accrued a substantial debt load due to these circumstances.

Among the investments contributing to this situation are the $215 million acquisition of Luxx Lighting, a Los Angeles-based enterprise, and the establishing of a research and development facility in Canada.

A strategic initiative, “Project Springboard,” initiated the prior year to enhance cash flow and bolster the company’s financial position, has yielded savings exceeding $100 million in the current quarter and an aggregate total of $300 million through the program.

In July, Scotts also made revisions to its credit agreement with JPMorgan Chase Bank, resulting in a reduction of $250 million in its revolving loan commitment.

Despite these challenges, Hagedorn maintains an optimistic outlook for the future. He asserts that they are progressing towards achieving $1 billion in cash flow by the culmination of fiscal year ’24. The revised credit facility offers leeway for debt reduction while prioritising investments in core business operations. Hagedorn also envisions the potential for profitability within Hawthorne and opportunities to leverage its dominant standing in the multi-billion dollar cannabis sector.

Scotts Miracle-Gro is listed as SMG on the New York Stock Exchange.

Assessing the Challenges and Trends

As the sales of Hawthorne Gardening Co., the subsidiary responsible for marijuana cultivation under Scotts Miracle-Gro, experience a continued decline; experts are delving into the multifaceted challenges and evolving trends that are shaping the cannabis cultivation market.

The cannabis industry has witnessed remarkable growth over the past decade, with changing attitudes towards legalization and increasing consumer demand. However, the recent downturn in sales at Hawthorne highlights the complexities and uncertainties that come with operating in this rapidly evolving sector.

Several factors contribute to the challenges faced by Hawthorne. Regulatory changes, both at the federal and state levels, have introduced a level of unpredictability that affects production, distribution, and sales. Navigating the intricate web of regulations while ensuring compliance has become critical to sustaining growth in the cannabis industry.

Moreover, the maturing cannabis market has led to intensified competition. A proliferation of cultivators, suppliers, and retailers has created a crowded landscape, making it crucial for companies like Hawthorne to differentiate themselves and deliver unique value to consumers.

Consumer preferences are also evolving, with demand shifting towards premium products, sustainable cultivation practices, and innovative growing solutions. Meeting these changing demands requires constant adaptation and investment in research and development.

Analysing these challenges, experts emphasise the need for Hawthorne and Scotts Miracle-Gro to adopt a multifaceted approach. This includes fine-tuning their product offerings, enhancing operational efficiency, and exploring new avenues for growth.

Navigating the Cannabis Landscape

In a rapidly evolving cannabis landscape characterised by shifting regulations and dynamic consumer preferences, Scotts Miracle-Gro demonstrates its agility and commitment to positioning Hawthorne Gardening Co. for sustained success.

Scotts Miracle-Gro recognises the critical importance of adapting to evolving regulations in this complex regulatory environment. The company takes a proactive approach to staying informed about changes at both federal and state levels. By closely monitoring regulatory developments and ensuring strict compliance, the company aims to minimise disruptions to Hawthorne’s operations and maintain a competitive edge within the market.

Sustainability is emerging as a central theme within the cannabis industry, driven by consumer demand and regulatory pressures. Hawthorne actively explores and implements eco-friendly cultivation methods, energy-efficient technologies, and innovative packaging solutions. By embracing sustainability, Hawthorne appeals to environmentally conscious consumers and contributes to a greener and more responsible cannabis industry.

Scotts Miracle-Gro invests significantly in market intelligence and trend analysis to remain at the forefront of the market. By thoroughly understanding consumer preferences and identifying emerging trends, Hawthorne can strategically tailor its product offerings to meet evolving demands. This data-driven approach enables the company to stay ahead of the competition and seize new opportunities as they arise.

Scotts Miracle-Gro’s extensive experience and established networks in gardening and agriculture provide a distinct advantage in the cannabis industry. Hawthorne can efficiently expand its market reach and penetrate new regions by leveraging these existing relationships. Collaborating with trusted partners empowers Hawthorne to navigate complex distribution channels and accelerate its growth trajectory within the competitive cannabis market.

At the heart of Scotts Miracle-Gro’s approach lies a commitment to a consumer-centric strategy. By engaging directly with cultivators, listening to their needs, and addressing pain points, Hawthorne can develop tailored solutions that resonate. Building strong customer relationships fosters loyalty and advocacy, ensuring that Hawthorne’s products remain sought-after and trusted within the cannabis cultivation community.

Bottom Line

In the face of declining sales at its marijuana subsidiary, Hawthorne Gardening Co., Scotts Miracle-Gro displays unwavering determination and strategic agility. As industry dynamics evolve, the company navigates regulatory complexities, champions sustainability, leverages market insights, fosters partnerships, and prioritises consumer satisfaction. Through this multifaceted approach, Scotts Miracle-Gro not only aims to reverse the sales slump but also solidify its position as a resilient and innovative leader within the dynamic cannabis cultivation landscape, shaping a future where growth and success remain the ultimate goals.

Source: https://cannabis.net/blog/news/the-bubble-continues-to-burst-in-the-cannabis-industry-as-pick-and-shovel-plays-flop-on-earning

Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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Agriculture & Life Sciences

Canada’s Cannabis Industry Urges Government to Support Growing Export Market

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BuzzBuzz Cannabis Business News — 24 November 2025

Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.

Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.

Industry Calls for Streamlined Export System

Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.

“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”

He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.

“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”

Competitors Are Moving Faster

McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.

“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”

Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.

High Tide CEO: Canada Needs a National Export Strategy

Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.

“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”

He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.

Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”

Germany: A Key Market for Canadian Firms

High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.

“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”

Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.

Government Response Remains Limited

In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”

However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.

A Closing Window of Opportunity

With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.

As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.

And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.

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Business

A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social

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When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.

For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.

Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.


The Science Behind the Endocannabinoid System

The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.

The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.

The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.

Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.


Hemp Derived CBD: A Game Changer for Aging

Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.

It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.

The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.

Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.


The Economic and Social Impact

The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.

It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?


A Call to Action: Finish What the Farm Bill Started

The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.

Now the call is for bold next moves.

  • Educate doctors about the endocannabinoid system
  • Include CBD under Medicare coverage
  • Provide clear federal standards for CBD quality and dosing

These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.


What This Means for Future Cannabis Medicine

For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.

It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.

It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.

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