Cramer, the co-manager of the Action Alerts PLUS portfolio, noted that General Mills saw sales decline 2.3% year-over-year while missing analysts' estimates. It also saw U.S. retail sales drop 5.4%.
"No one is eating cereal," he said. The company should have bought WhiteWave Foods (WWAV) or Hain Celestial (HAIN) , because the big growth trend is in natural and organic foods. Annie's (BNNY) will not be enough to move the needle, he suggested.
Cramer's only positive view was that last time the stock reported negative news and fell to these levels, shares bounced shortly thereafter.
Turning to Sony (SNE) , Cramer noted that the company continues to struggle. Sony warned of a larger-than-expected loss for the current fiscal year.
"Is management just not as strong as we think?" Cramer questioned.
Apple (AAPL) has crushed Sony and is a stock that investors should continue to own, he concluded.
-- Written by Bret Kenwell in Petoskey, Mich.