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The Scotts Co., Marysville, Ohio, has kicked off an aggressive cost-cutting campaign for the New Year that’s geared toward more than just building the company brand – they’re building a healthier workforce in the process. Project Excellence, a broad efficiency and cost-cutting program will include more focused product rollouts and an effort to control health-care costs by eliminating smokers from the company’s payroll.
Over the course of 2006, Scotts will be asking employees to take a health survey and follow doctor’s recommendations for good health, or pay more for their health insurance. Moreover, the company will be implementing a no-smoking policy that applies both on and off the Scotts premises. Approximately a third of the company’s employees are currently smokers and the company is offering smoking cessation programs to help them kick the habit.
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According to a report in AdAge magazine, reductions in health care costs will allow Scotts to boost advertising spending from 5.6 percent of sales ($143 million) in the 2005 fiscal year that ended Sept. 30, to 7 percent of sales this fiscal year. The sales will be put behind the Smith & Hawken garden supply line, which Scotts purchased in late 2004, as well as a series of new Scotts and Miracle-Gro lawn and plant-care products.
The AdAge report also notes that Scotts will be implementing a “Southern Strategy” aimed at a fast-growing southeastern market with a 33-percent increase in television support and more new products.
Calls to Scotts for additional information were not immediately returned. Lawn & Landscape will work to bring you more information as it becomes available.