Jim Cramer: Pantry Companies Need to Merge

TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer says pantry companies aren't going to grow and need to make an acquisition. 'The pantry companies have to merge or die,' Cramer said, adding that Kraft Heinz (KHC) - Get Report and Mondelez (MDLZ) - Get Report are pantry companies. Cramer said Mondelez's proposed acquisition of The Hershey Company (HSY) - Get Report , which was rebuffed Thursday, is a brilliant acquisition, but the takeover price should be $130-$140 a share, instead of the $107 Mondelez offered. Mondelez shares lost 0.4 percent on Friday, but gained 1 percent since the start of the year.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.