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Cramer: The next company Amazon could dominate

Cramer: The next company Amazon could dominate

For those who thought Amazon achieved total world domination, think again. Jim Cramer discovered more worlds for Amazon to conquer, particularly when it announced it would launch new lineups of private label food and consumer products.

Just as a local supermarket has cheaper store brand products, Amazon will now offer its own food competitor.

Amazon's stock barely budged on the news, which made sense to Cramer since this is still a small market for it. However, Treehouse Foods popped 2 percent on the news over speculation that it could be a possible partner with Amazon in its private-label efforts.

"Treehouse gave back all of those gains today, but I think this is an intriguing story, and you are now getting a great entry point," the "Mad Money" host said.

Even if they don't get Amazon's business, I think the stock is a buy.
Jim Cramer
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Treehouse Foods has proprietary brands but mainly specializes in making private-label products for supermarkets with a focus on soups, sauces, pudding, health and wellness foods and healthy snacks, among others. Amazon has consulted with Treehouse in anticipation of the private label launch, according to The Wall Street Journal.

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"Frankly, I don't see how Amazon has much choice, because just as Amazon is the king of online retail, Treehouse is the king of private-label food," Cramer said.

Treehouse was originally spun off by Dean Foods and has since grown into a major player thanks to a series of acquisitions, including ConAgra's ailing private-label operation. When the sale was completed in the beginning of February, Treehouse became the largest private-label food and beverage maker in the U.S.

And considering that Amazon doesn't have a vast experience manufacturing food, and Treehouse does, Cramer suspects that Treehouse could get a piece of the Amazon business.

"Even if they don't get Amazon's business, I think the stock is a buy," Cramer said.

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