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Thirsty? Cramer's fave beer stocks

For investors thirsting to add to their portfolio, CNBC's Jim Cramer on Wednesday served up two of his favorite beer stocks, namely Molson Coors Brewing and Constellation Brands.

Molson Coors saw shares climb sharply in trading Wednesday after delivering a better-than-expected second-quarter profit as higher pricing helped boost sales. "Look at that stock. They are cleaning up," Cramer said.

"This beer market can do no wrong. People love the margins. They love the consolidation," Cramer said on "Squawk on the Street." "They may not allow Sprint to merge with TMUS, but they have allowed beer companies to get together. Why? Beacuse craft beers are the alternative. IPAs."

Jim Cramer
Adam Jeffery | CNBC
Jim Cramer

Cramer was referring to news that after two months of lobbying failed to clear regulatory hurdles, Sprint has retreated from its offer for T-Mobile US. It seems consolidation in the beverage industry has so far been a bit different.

Read MoreSprint drops bid to buy T-Mobile, changes CEO

In February 2005, two of North America's largest breweries—Molson of Canada, and Coors of the United States—merged to create Molson Coors, which offers everything from Molson Canadian to Killian's Irish Red to Keystone.

Last year, Anheuser-Busch InBev was able to purchase Grupo Modelo, but only on the condition it shed Modelo's U.S. business. In turn, Constellation Brands purchased the U.S. rights to Modelo, allowing it to produce and sell its own version of Corona and other Modelo brands in the U.S.

To Cramer, the beverage industry should continue to brew up profits.

"This group remains hot. The hotter the summer, the better the numbers," Cramer said. "Constellation my favorite, but well done Molson Coors."

—By CNBC's Drew Sandholm

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