Cramer: This Food Stock Looks Delicious

Thursday, 3 Jan 2013 | 6:36 PM ET
Hormel Foods CEO: Excited About Profit Potential From Skippy
Hormel Foods CEO Jeffrey Ettinger discusses his company's decision to buy Skippy Peanut Butter from Unilever, saying they "certainly have the capacity to do other deals."

Got a taste for profits? After chatting with the CEO, Cramer thinks you'll find this stock very satisfying.

"I recommended Hormel back in May and it's already given us a nice 12% gain since that time," said Cramer on Thursday's broadcast. "Yet even though the stock's now at a 52-week high, I think it could have more room to run."

Part of Cramer's enthusiasm stems from Hormel's acquisition of Skippy Peanut Butter from Unilever for $700 million.

Skippy, which dates back to the early 1930s, is the No.2 U.S. peanut butter brand after J.M. Smucker Co's (SJM.N) Jif. It had annual sales of $300 million in 2011 and Hormel expects it to contribute $370 million this year.

Sharon White | Photographer's Choice | Getty Images

"Why am I so excited about this peanut butter deal? Because it makes me think back to the last big peanut butter transaction, when Smucker bought Jif from Procter & Gamble in a very similar deal back in October of 2001," said Cramer.

Over the next twelve months, Smucker rallied 26%, knocking the stuffing out of the S&P, which was up just 3% over the same period. If Hormel follows in Smucker's peanut buttery footsteps, you could make a hefty chunk of change," said Cramer.

Read More: PB & Spam? Hormel Says It's Buying Skippy

You can hear more about the deal from Jeffrey Ettinger, the chairman and CEO of Hormel Foods in the video above.

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