Coke and Altria Go to the Head of the Class

Procter & Gamble (PG - commentary - Cramer's Take)and Kellogg (K - commentary - Cramer's Take) just made Coke (KO - commentary - Cramer's Take) and Altria (MO - commentary - Cramer's Take) more valuable.

When we got the commodity bills from Kellogg and PG, we realized that we now have a two-tiered class of soft-goods companies: the indestructibles and the partially destructibles.

The latter, Procter, Kellogg and Pepsi (PEP - commentary - Cramer's Take) need commodity costs to come down to beat the numbers going forward.

Coke and Altria don't. KO has said raw costs are peaking. MO is restructuring to bring out value and doesn't have much of a commodity piece to it.

Now some of the partially destructibles get some wind at their back: Avon (AVP - commentary - Cramer's Take) and Colgate (CL - commentary - Cramer's Take), for example, really got some help from currency and stronger country growth overseas. They are still on the buy list. But I am willing to pay a premium for the ones that have no hair.

The bottom line: Altria goes to $75, and Coke should travel to $65 on the back of scarcity of indestructibility.

At the time of publication, Cramer was long Altria.

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