NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said large food companies Campbell Soup (CPB) and Kellogg (K) reported poor earnings results, but their shares traded higher in the aftermath. Meanwhile, smaller food companies, such as Hain Celestial Group (HAIN), reported good results, but their shares are now lower, Cramer added.
CNBC's David Faber said that the consolidation in the industry is staggering, with plenty of M&A activity.
"You cannot win against the conventional supermarkets because they are too powerful," Cramer said.
Many now wonder whether Hillshire's offer for Pinnacle Foods (PF) will still be completed. Cramer called the latter a well-run company with a "good yield."
Faber questioned whether Hillshire could get out if its deal for Pinnacle Foods.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.
-- Written by Bret Kenwell in Petoskey, Mich.
>>Read More: The Seven Deadly Sins of Biotech Investing
>>Read More: Palo Alto Networks Is Too Good to Be Left Alone