NEW YORK (TheStreet) -- When it comes to Coke vs. Pepsi, which one is right for your portfolio?
Jim Cramer said, "Quite frankly, I'm shocked at Coca-Cola (KO). If it were any other company, you'd be saying, 'It is falling apart.'"
The problem, Cramer said, is that "they can't figure out what to do because both diet and regular carbonated are going down in America, and it's a disaster for them."
Although PepsiCo (PEP) faces the same challenges with carbonated beverages, he said, Frito-Lay "is coming on strong."
On Thursday, PepsiCo CEO Indra Nooyi and Buffalo Wild Wings (BWLD) CEO Sally Smith announced a deal in which Pepsi will be the preferred beverage provider in the restaurants, which will have special Frito-Lay offerings.
"That is brilliant," Cramer said.
It also shows why the two companies -- PepsiCo and Frito-Lay -- need to stay together, he said.
"I know Nelson Peltz, who's a terrific investor, wants them split up," Cramer said. "This is exactly wrong right now. Indra Nooyi's got the right combination. Coca-Cola doesn't."
He added, "Yes, I would sell Coke and I would buy Pepsi."
-- Written by Carla Baranauckas in New York.
At the time of publication, Jim Cramer held no positions in any of the stocks mentioned.
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