NEW YORK (TheStreet) -- There's much packaged-food companies can do to improve their business, but TheStreet's Jim Cramer thinks Campbell Soup Company (CPB - Get Report) CEO Denise Morrison is using the wrong strategy.
Cramer, the co-manager of the Action Alerts PLUS portfolio, noted that Morrison admitted her company is "well aware of the mounting distrust of big food" when she announced a new cost-cutting plan at the Consumer Analyst Group of New York Conference this week in Boca Raton, Fla.
But Cramer, the co-manager of the Action Alerts PLUS portfolio, said during CNBC's "Stop Trading" segment that the better recipe is to give consumers fresh rather than canned and processed foods.
Cramer pointed to a couple of his favorites, fresh and organic food companies Hain Celestial Group (HAIN - Get Report) and WhiteWave Foods (WWAV) that are benefiting from the shift in popular taste toward more natural foods.
Companies like Campbell Soup can't cut costs as a means for growth, Cramer said, and at some point will have to develop its own natural or organic lineup or buy a company in that industry.
Big food companies are on the verge of becoming "dinosaurs," Cramer added.