Cramer: Coca-Cola Needs to Buy Monster Beverage, Keurig Green Mountain

NEW YORK (TheStreet) -- TheStreet's Jim Cramer has a thirst for mega-deals on this Friday.

He noted Monster Beverage (MNST)  stock is up nearly 7% thanks to its third-quarter earnings beat. Cramer, co-manager of the Action Alerts PLUS portfolio, thinks the beverage company would be an excellent fit for Coca-Cola (KO) . 

"This could be one of the solutions to Coca-Cola's poor growth," he said during CNBC's "Cramer's Stop Trading" segment. Coca-Cola already has a 6.7% stake in Monster, so a complete takeover could only put a charge in Coke's revenue. 

But Cramer sees more in Coke's future. He thinks Coke should expand its 16% stake in Keurig Green Mountain (GMCR)  into another complete takeover. 

MNST Chart
Keurig Green Mountain GMCR and Monster Beverage MNST data by YCharts

"Remember, Coca-Cola has no growth," Cramer argued. Simply partnering with Keurig Green Mountain and Monster Beverage is unlikely to provide shareholders with the fizz they desire.

Through the first three quarters of 2014, Coca-Cola has generated $35.1 billion in revenue, below the $35.7 billion in revenue generated in the first three quarters of 2013. 

"I think both of these companies are logical acquisitions in the end for Coca-Cola, if the company really wants to grow," he concluded. 


-- Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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