Falling Natural Gas is Great News For Packaged Goods

Raising numbers for packaged goods! That's what you have to do with this incredible decline in natural gas. That's a gigantic part of the cost structure of Procter & Gamble (PG - commentary - Cramer's Take) and Pepsi (PEP - commentary - Cramer's Take) or of Colgate (CL - commentary - Cramer's Take) and General Mills (GIS - commentary - Cramer's Take) .

Those companies, unlike Dow (DOW - commentary - Cramer's Take), which is also a big natural gas user, or PPG Industries (PPG - commentary - Cramer's Take), which has the same raw cost, can maintain pricing. Dow shot itself with that expensive Rohm & Haas (ROH - commentary - Cramer's Take) deal, I don't know if PPG can pass on the costs either.

But the packaged goods companies just put through the increases and the estimates for the street are all based on natural gas north of $10.

These prices just aren't in the numbers at all and despite the fact that many of these companies are weak dollar plays--except for GIS and PEP--you have the moment right now where the raw costs have dramatically offset the dollar, giving you plenty of room to buy these stocks on a tick for tick basis with the decline in natural gas.

At the time of publication, Cramer was long GIS, PEP and PG.

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