Hillshire, which owns such iconic brands like Jimmy Dean and Ball Park Franks, is reinvesting in its businesses in order to drive future costs, said Cramer, and is working on everything from cutting costs to innovating with new products and more appealing packaging. The company is also selling non-core assets in order to focus its efforts on just a few key areas.
While many investors worry about commodity cost inflation, Cramer said he's not one of them because Hillshire's expected growth will more than offset any price increases. He said the company reported a great quarter and only gave tepid guidance in order to create the classic under-promise and over-deliver situation.
Breaking up is not only easy to do, it's profitable, too, Cramer concluded, but sometimes it takes a little longer than you might expect.
In the "Executive Decision" segment, Cramer sat down with Walter Robb, co-CEO of Whole Foods (WFM), a stock that's up 40% since Cramer last spoke with Robb a year ago.Robb responded to tweets from viewers asking when they'll have a Whole Foods in their town by saying, "We're working on it." He said Whole Foods is expanding into markets such as Boise, Idaho, and Wichita, Kansas, and will be accelerating its growth into 2014. The company has signed 74 new leases already, Robb noted, with more to come. When asked about the company's experiments with such things as in-store organic nail salons, Robb said Whole Foods is about a lifestyle and an experience, which is why it experiments with things like in-store pubs, which are now in 55 locations, and the nail salon concept. People just want to come in and relax after work, said Robb. Turning to private-label products, Robb explained that Whole Foods seeks to strike a balance between brand-name products, local brands and private-label goods. He said there's always a balance between quality and value. Robb also commented that the markets appreciate Whole Foods' culture and the spirit of the company, which is why it receives a valuation similar to that of Starbucks (SBUX) and Chipotle Mexican Grill (CMG), two other aspirational brands.
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