Jim Cramer Says Food Companies Need to Consolidate and Kraft Heinz CEO Steve Cahillane Should Be the One to Do It

The Kraft Heinz Company (NASDAQ:KHC) is one of the stocks Jim Cramer evaluated, along with the fragile food market. During the episode, Cramer suggested how the company’s CEO, Steve Cahillane, can orchestrate a consolidation, as he stated:

… My radical plan. It’s time for the food companies to consolidate. And the consolidator, the only person who’s actually been able to make money in this group for shareholders in a huge way, that’s Steve Cahillane. He’s the CEO of Kraft Heinz. Now if you remember, Steve split Kellogg into the old WK Kellogg for cereal and Kellanova for snacks. Less than a year later, he sold Kellanova, which he stayed with by the way, for huge amount to Mars. Then less than two years after that, WK Kellogg caught a bid from Ferrero. That’s much more than you return when you’ve gotten, you would’ve crushed the S&P over a three and a half year period with a food company. As for Kraft Heinz, it was going to split into two before Steve got there at the beginning of the year. He canned that plan quickly. He said that the company was weaker than he thought. Needed to improve. Forthright. That’s what I want. I say forget the noise. I am the signal.

It’s time that Steve Cahillane put together all four of these packaged food companies into one brand powerhouse. He could pick and choose the fast-growing brands. The slower-growing brands go to another company. The ones that shouldn’t be even brands anymore, well, he can just get rid of them. He can divide them into separate businesses like he did with Kellogg. There’s a million things he could do. Why now? Because under Trump, the Justice Department and the Federal Trade Commission will probably bless any of these deals. It’s a once-in-a-lifetime opportunity where they simply don’t need to worry about antitrust enforcement.

Photo by Adam Nowakowski on Unsplash

The Kraft Heinz Company (NASDAQ:KHC) produces food and beverage products, including condiments, dairy, meals, meats, beverages, and snacks.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.