Mad Money

Cramer: PepsiCo, Constellation Brands should get more credit for disrupting their businesses

Key Points
  • With PepsiCo's acquisition of SodaStream and Constellation Brands' investment in Canopy Growth, CNBC's Jim Cramer says we should celebrate the disruptors.
  • SodaStream is everything PepsiCo isn't, according to Cramer.
  • With Canada set to legalize recreational marijuana use, Canopy Growth represents a new world that Constellation Brands is poised to take advantage of.
PepsiCo, Constellation Brands should get more credit for disrupting: Cramer

According to CNBC's Jim Cramer, companies that don't disrupt their own businesses "end up getting crushed by those who do." He highlighted two companies, PepsiCo and Constellation Brands, that are taking steps in the right direction.

On Sunday, PepsiCo announced it was acquiring at-home carbonated drink maker SodaStream for $3.2 billion. SodaStream's all natural, environmentally-friendly branding is in stark contrast to PepsiCo's traditional soft drinks, which is why Cramer thinks the company has been especially embraced by millennials.

Millennials "hate shopping in person. With SodaStream, you don't have to go to the store. The machine and the canisters are easily available online," the "Mad Money" host said. " When they look at a label, they don't want to see an endless list of unpronounceable artificial ingredients. SodaStream has no labels. It's just water and CO2."

Given SodaStream's dominance abroad, Cramer thinks that the acquisition price is fair and that PepsiCo is making the right moves. He advised the company to streamline its marketing messaging now that PepsiCo has added another brand to its roster. In the past, SodaStream CEO Daniel Birnbaum has criticized bottled water companies, and PepsiCo owns two: Aquafina and LIFEWTR.

SodaStream shares have more than doubled this year, with the stock closing at $142.11 on Monday.

Another disrupting deal happened on Friday when Constellation Brands, which owns various spirits brands like Corona and Svedka Vodka, invested almost $4 billion in medical marijuana company Canopy Growth. With the new investment, Constellation will have a 38 percent stake in Canopy Growth.

Cramer commended Constellation CEO Rob Sands for recognizing that "marijuana is going mainstream." Canada, where Canopy Growth is based, is set to legalize recreational marijuana use this fall. "This is the future whether you like it or not," the "Mad Money" host said.

Canopy Growth is the largest publicly-traded marijuana company. The stock is up almost 60 percent year to date.

"Celebrate these companies that are willing to put their present business at risk in order to own the future," Cramer concluded.

WATCH: Cramer on PepsiCo and Constellation Brands

Cramer: PepsiCo, Constellation Brands should get more credit for disrupting their businesses

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