Mad Money

Cramer: To survive this market, you need a beer

What's brewing in the beer business

Given events around the globe threaten to take down stocks at a moment's notice, what's an investor to do?

"I suggest turning to beer," Cramer said, "and not just because a cold one at the end of the day helps wash away the misery of watching your stocks get crushed."

In this case the "Mad Money" host believes owning a beer stock may generate significant gains. And he thinks the is a terrific catalyst for the space.

"How would I play that possible merger? I think there's one company that comes out ahead no matter how things play out, and that's Molson Coors," Cramer said.

Molson Coors???

That may sound counterintuitive, but Cramer noted if the merger goes through it would combine the world's number one and number two beer makers. And Cramer doesn't think regulators will allow a deal of that magnitude, unless both companies agree to divest themselves of some assets.

So what would the combined AB InBev SAB Miller sell?

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"SAB has a joint venture with Molson Coors, called Miller Coors, which includes Coors Light and Miller Light. I bet the combined company, BUD and SAB, would have to sell their stake in this joint venture to make the merger happen, and the only buyer for SAB's majority position in Miller Coors is TAP," Cramer said.

The acquisition could probably be made at an attractive price and after crunching the numbers, Cramer says owning Coors Light and Miller Light outright, could boost the bottom line significantly.

"I think buying the 58 percent of Miller Coors that they don't already own would boost TAP's operating margin by 650 basis points and be immediately additive to the company's earnings per share."

But that's not the only way to win.

"There's another scenario," Cramer said. "Suppose SAB Miller doesn't want to be acquired. You know what would be a terrific way to fend off a hostile takeover attempt by AB InBev? You guessed it, buying Molson Coors."

Again, shareholders should win, with the company commanding some kind of premium.

"In this sceanrio, I think SAB would be willing to pay anywhere from $90 to, say, $98 a share for Molson Coors, which amounts to a 25 to 35 percent premium versus where the stock's currently trading."

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And even if speculation falls apart and there's ultimately no acquisition, Cramer still likes owning Molson Coors. If nothing more, "the company has terrific fundamentals," Cramer said.

"It is still a high quality company capable of delivering solid, consistent growth both domestically and overseas. Granted, the stock has already rallied sharply year-to-date, but I think it's still an attractive buy, especially if it pulls back on additional market-wide weakness."

Call Cramer: 1-800-743-CNBC

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