This is a note from our sponsors.
For Hawthorne Gardening Company, the economic realities of the cannabis industry forced the leading supplier of nutrients, lighting and other cultivation products to make a strategic pivot.
It involved decisions that would not come easy. After years of growth fueled by the acquisition of brands and distribution capabilities, Hawthorne found itself overburdened with a supply chain network and an organization that was too big for what had become a contracted cannabis market.
“Our situation was very similar to what many companies across our entire industry were facing and, frankly, continue to face,” said Tom Crabtree, chief operating officer of Hawthorne. “All of us have had to make very tough decisions that negatively impacted our people or altered the way we operate.
“We had to embrace our reality and remake Hawthorne for today as well as the future. After a lot of hard work, we now have Hawthorne poised for profitability and are more prepared than ever to serve cultivators with solutions to achieve higher-quality outcomes and address cultivation challenges.”
Hawthorne’s turnaround plan is grounded in a shift it made in 2024 to return to its roots and focus on the things that deliver the most value to growers. That meant shedding some underperforming brands and getting out of the business of distributing third-party products.
Hawthorne renewed its commitment to its core strength – the leading brands that long formed the foundation of the business. Those brands, which span from growing media and nutrients to lighting and other durables, include General Hydroponics, Botanicare, Cyco, Gavita, Mother Earth, GroPro and Hydrologic.
As a result of the pivot, Hawthorne was able to significantly shrink its supply chain for cost savings. Hawthorne also forged a partnership with BFG Supply, an expert in distribution with a reputation of quality service, to support the distribution of many Hawthorne brands on a national basis.
“Our brands are our strength,” Crabtree said. “This is what Hawthorne was built upon. We had to get back to going all in on our leading brands.”
Today, Hawthorne is a smaller and more agile and nimble organization capable of moving with speed in serving growers. It is set up for increased investment potential and higher service levels.
“We’re creating the capabilities and financial wherewithal to drive our brands and innovation to levels higher than what we’ve been able to do in recent years. We’re now making proper investments for a market leader, and that’s a win for us, growers and customers,” said Josh McFarland, vice president of strategy and category development for Hawthorne. “You’ll see these investments start to happen in a bigger way starting in 2025 with grower-centric innovation and solutions that are informed by our collaboration with growers.”
McFarland noted that Hawthorne’s research and development capabilities run deep, as the company has operations at multiple U.S. locations for hemp research and a facility in Canada where it is conducting research directly on cannabis plants. The research informs the development of its growing solutions and products.
“Our research capabilities are a differentiator,” McFarland said. “We are much more than your typical supplier. We are uniquely positioned to partner with growers on a number of levels to help them maximize yields, achieve higher-quality outcomes and realize cost efficiencies.”
Hawthorne will once again be attending MJBizCon in Las Vegas from December 3 to 6. The company is located at booth #27018 along with a presence on The Patio.
Tips for selecting a cultivation supply partner
If you’re interested in a supplier who can serve as a partner committed to the success of growers, consider these factors:
- Reputable and leading brands. Do the supplier’s core competencies include research, product development, manufacturing and other necessary resources and capabilities to produce world-class products?
- Breadth of solutions. Does the supplier offer a range of complementary products that can be integrated into growing operations?
- R&D. Does the supplier have the ability to work with growers on testing and other research?
- Distribution network. Does the supplier have distribution capabilities either through its own network, that of a third-party expert, or a combination of both to serve customers in a timely manner?
- Grower centric. Does the supplier work as a partner, developing solutions based on the needs of cultivators and holding itself accountable for the outcomes?
