Standard&Poor's Ratings Services' ratings on Marysville, Ohio-based The Scotts Miracle-Gro Co. reflect significant customer concentration, exposure to commodity cost increases, competition from private label offerings, and the seasonal nature of the industry. The ratings also reflect the company's expansion into private label business, which could hurt gross margins in the future. The company benefits from its leading market position, well-recognized brand names, and favorable long-term demographic trends. Scotts provides consumer products for lawn and garden care, professional turf, and horticulture. The company also provides residential lawn care, tree and shrub care, and external pest control services through its LawnService business. Despite difficult economic conditions, the company's performance has improved, in part due to overall good industry demand, the
