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Cramer: Pivotal day for food stocks

Years from now, Cramer thinks investors may look back and remember this day as a day that was pivotal for the food industry.

"My jaw dropped when I saw it. General Mills to buy Annie's for $46 a share. That's an astounding 37 percent premium to the close and a 51 percent premium to the last 30 days."




Canned food
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Cramer found the acquisition astounding because General Mills is largely regarded as among the best run packaged goods companies in the industry. By contrast, Cramer says Annie's isn't nearly as disciplined.

"Annie's has pretty much disappointed for multiple quarters and has had a very sorry execution pretty much for most of its two and a half years of public existence," Cramer said.

For General Mills to acquire Annie's, Cramer says General Mills must be extremely eager to increase its presence in the organic and natural food segments of the packaged goods industry. And, in order to do it, they're willing to acquire a company that Cramer says is "poorly run."

Although skeptics have viewed organic foods as more of a fad, Cramer has insisted it was something much bigger; that it represented an evolution in what people want to eat and why.

And Cramer believes, the acquisition confirms his outlook. "It's the ultimate comeuppance," Cramer said.

In turn, Cramer thinks developments are a sign that similar companies, such as gluten-free food seller Boulder Brands, could also be in play. "It's a tiny $867 million company that could easily be gobbled up by the larger packaged food plays like Kellogg, or the ailing Campbell Soup," he said. "And given how inconsistent Annie's has been, I have to wonder if any takeover target needs to be particularly well run."

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All told, Cramer thinks Tues., Sept. 9 may be a pivotal day for food stocks. It may be the day when the food industry was forced to reconcile that Americans can't be force fed food that isn't good. "It may be the day the traditional food chain surrendered to natural and organic," Cramer said.

Call Cramer: 1-800-743-CNBC

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