"Take a look at Coke's record of investment," Cramer said on "Squawk on the Street." "When they do go in, the stock doesn't go lower. It goes higher."
Coca-Cola announced on Wednesday evening that it wants to collaborate on Green Mountain's upcoming Keurig Cold system, a measure viewed as a move against , the company based in Israel that manufactures home carbonation kits and that recently grabbed headlines over a controversial Super Bowl commercial. The 10-year deal is valued at $1.25 billion.
(Read more: Green Mountain shares explode on $1.25B Coke deal)
"Green Mountain until today was one of the greatest shorts ever," Cramer said.
SodaStream shares dropped sharply, while Green Mountain stock soared more than 34 percent when trading opened Thursday morning. Cramer said the bets against Green Mountain, which came from prominent hedge funders such as David Einhorn, were directed at the old Green Mountain. With the Coke deal, this is a new Green Mountain, he said.
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"It's a game changer for Green Mountain," Cramer said during an earlier appearance on "Squawk Box." "People felt that hot [coffee] had peaked. Suddenly you have cold and you have unlimited firepower and you have international distribution."
—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."