Jim Cramer Says Giovanni Ferrero “Might See Some Value in Some of the Kraft Heinz Brands Too”

The Kraft Heinz Company (NASDAQ:KHC) is one of the stocks on Jim Cramer’s radar. During the episode, Cramer discussed the future possibilities of the company. He said:

“I mean, you could see… Kraft Heinz. It’s reportedly breaking up soon. People are yawning. So what, so what they’re saying, big deal. I say, no, that is dead wrong. The company’s said to be planning to keep its faster-growing brands, like maybe Heinz Ketchup, a lot of new derivatives there… Philadelphia Cream Cheese, while separating the brands with the slowest growth, like Oscar Mayer packaged foods, Velveeta cheese.

The deal putting Heinz and Kraft together sounded like a match made in heaven in 2015. How could it fail? Great name brands orchestrated by Warren Buffett and the brilliant people from 3G Capital, the uber successful Brazilian private equity firm… But then people stopped going to the center aisles of the supermarket, and that spelled trouble for Oscar Mayer, for Jell-O, for Miracle Whip, for Maxwells, for Velveeta, which apparently can survive thermonuclear war, and Cheez Whiz…

Here’s what’s amazing, though, people now think these brands have no value, but you know what? That’s what they said about WK Kellogg. The cereal business, when it split with Kellanova, the fast-growing part of the Kellogg family, which of course got a bid until the serial acquirer couldn’t, couldn’t resist… Serial acquirer Ferrero stepped up and paid $3.1 billion for the maker of Fruit Loops and cornflakes. That was some deal last week. It was amazing… My feeling is that if Giovanni Ferrero sees value in Fruit Loops, he might see some value in some of the Kraft Heinz brands too.”

A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.

Kraft Heinz (NASDAQ:KHC) develops and sells a broad portfolio of food and beverage products under its brands and distributes them through retail, foodservice, and online channels.

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Disclosure: None. This article is originally published at Insider Monkey.