Jim Cramer’s Private Label Stock Plays: THS, RAH, AIPC

Cramer said there is a sea change happening in the minds of Americans consumers. Despite the economic recovery, Cramer mentioned that the habits of Americans have shifted during the great recession away from expensive branded, heavily advertised merchandise in the form of private label, knock off foods, drugs and soft goods. For example, Wal-Mart Stores Inc. (NYSE:WMT) has expanded their private label plastic bags by taking market share from national brands like Glad, Hefty and Ziploc. And CVS Caremark Corporation (NYSE:CVS) talked up the strength of private labels on its conference call recently. “Name brands are out, knock-offs are in,” Cramer said, “and you should invest accordingly going forward.”  He told viewers to sell name manufactures like Diageo plc (ADR)(NYSE:DEO) and Brown-Forman Corporation (NYSE:BF.B). Cramer said the smart money will be in private label manufacturers, such as TreeHouse Foods Inc. (NYSE:THS), Ralcorp Holdings Inc. (NYSE:RAH) and American Italian Pasta Company (NASDAQ:AIPC). The private label trade-down plays are now genuine secular growth stories thanks to the reluctance of the consumer to pick the expensive product when the cheaper one seems just as good. “People are tired of being fooled by expensive brands that are no better than the cheaper unbranded one,” Cramer said.   Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

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