part of our reindeer games, he'll be the only one on the show on tuesday. >> let me ask -- >> wynn resorts. >> if you win, do you buy me a car? >> wynn. >> thanks for watching "fast." don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you but to educate and teach you. so call me at 1-800-743-cnbc. or tweet me @jimcramer. we keep losing viable groups as formerly terrific sectors go

flat. that's one of the main reasons why this market has become so frustrating. it's a real threat to whatever bull markets are left. and the ones that are left out, boy, are they painful. the recent sell-offs, they're much more extreme than our rallies. we just don't have enough sectors with strong prospects, which leads to a shortage of viable stocks. that's why the universe of winners is so narrow here. even on a day when the averages rebounded hard from the lows, dow finishing off just 12 points, s&p dipping 1.3%. nasdaq declined.12%. you know as i say every night there's always a bull market somewhere but it's getting pretty hard to find it. so tonight i want to talk about what's happened, about some of the vanishing bull markets, the ones that are at the precipice or tipped because you need to know how this business has become so darn hard. what's causing these bull

markets to move into bear markets? is it interest rates, strapped consumer, into the post-covid heyday? maybe a little bit of all of them? why don't we go down the list, you and me? the list of the lost bulls. maybe we can find a couple. let's start with what's been a real story, travel leisure. when we were locked up with covid we craved travel going out. when the pandemic ended we realized we were long on money but short on time. so we set out for points unknown. that drove the airlines, the hotels, restaurants stocks higher. just an incredible bull market. but in the last few weeks with the rising fuel costs and decrease in disposable income because of tightening credit, we pretty much obliterated the entire thesis. everything from disney to marriott to delta to darden to carnival has been nothing short of disastrous. >> the house of pain. >> same goes with airbnb. it doesn't matter how well they're doing. we're talking about the stocks, not the companies. wall street has collectively rendered a judgment that next

year has to be worse than this year. given the spike they had post-covid the travel and leisure stocked are now among the most accursed post-covid hangover we have. there's no more escaping it than there is escaping the declines in zoom and moderna and pfizer. arguably the three biggest winners during the pandemic and then the losers after it. how bad is this travel leisure bust? marriott just had an analyst meeting where they talked about great growth ahead and nobody cared. the cruise lines, they have phenomenal bookings. disney has tepid disney world numbers in florida but they're still above the 2019 level. and disneyland's jam-packed. shanghai disney's incredibly strong. their cruiseships are booked solid. all that happens, though, is that drip drip dripping of disney's market cap. it's been pole axed beyond all recognition if you back it out. which is hard for me to watch because my charitable trust has been a buyer. and the restaurants? well, now that eli lilly and

novo nordisk have drugs that knock out cravings for food, how the heck do we start buying mcdonald's with that big mac, fries and diet coke? i bet mcdonald's sells fewer and fewer as these new weight loss drugs become more and more popular and therefore those foods become less and less tasty. more on that later. but trust me when i say for many people on wegovy or mounjaro, that's the novo nordisk and lilly drugs, a cheesecake factory is about as appetizing as a tool and die factory. almost no group's been hurt as badly as the airlines because they lost the business traveler and they had to raise fares to stay ahead of jet few. the airlines seem to have priced themselves out of growth. they're casualties of, well, everything. housing. for the longest time the home builders had shown tremendous rest restraint, building just what was needed and seemingly not a house more. that was good for d.r. horton -- these were able to continually raise prices. they would print money, meeting very little resistance.

now there's still tremendous demand out there. but norge rates have gotten so high around 8% versus, say, 3.5% not that long ago that a substantial part of the population has indeed been priced out of the housing market. it's happened so quickly it's possible we had a traditional housing cycle finally on our hands where the home builders are still building, except now it looks like they may be building too aggressively and the buyers are walking away because of those high mortgage rates. i have no doubt there are many people that want a home but if they can't afford it doesn't matter. we know the fed's very concerned that home prices have gotteen high. higher mortgage rates will make it so there are more homes left on the rnlg market which historically has led to more affordable housing. the cycle might be back. at the moment there's still no excess inventory to speak of but just like the travel stocks have come down despite strong bookings the housing stocks have told us the housing bull market -- sick of working it. when the economy teeters for the recession we're supposed to reach for the food stocks, the staples. but what if these new weight loss drugs, the glp-1s we're

talking about, continue to take the country by storm? what if urmt wa's almost offhanded comments about how they're starting to see sales being impacted by these drugs take, say -- i don't know, much more standoutish? i don't know what to say. it was so offhanded. do you really want to own smuckers knowing they paid more than 5 billion for hostess, the owner of twinkies and ho-hos? part of the disrupted snack category that walmart is talking about? the argument is people always love junk food and not everyone's going to take these expensive new drugs. however, we're not in that kind of market. people will assume everyone will take the expensive new drugs and the whole category will be disrupted. if maryland's stock can be salvaged even though it's a trusted brand, what are you supposed to think about smucker? or how about conagra? they're talking about a stretched consumer not buying some core staples they sell. but can the consumer be all that stretched with sub 4% unemployment and wage growth the fed thinks is too hot? should we pay as much for this

company's earnings as we did before the advent of these new weight loss drugs? i'm sure conagra has many ways to boost sales, but this is a glass half empty market, people. anything that might damage their future growth is viewed as a serious problem. how about retail? now, we know there are cross-currents everywhere. some good including robust employment. some bad. but theft destroyed a lot of the good and markdowns it can down what was left. i think people of all but given up on a walgreen's and cvs. giant chains. because it's impossible for them to prevent theft without putting all the most popular stuff behind lock and key. even home depot's got stealing issues. same with target. it's hard to find somebody in the retail business that doesn't have this problem except for costco and amazon. crushed because not only are their dividends too small they need to borrow money constantly because this is an extremely capital intensive industry. have you seen those stocks? at&t down 19%. suspicious 7.5%.

verizon a suspect 8.4% yield. need to borrow money endlessly. and don't forget the banks. they do poorly when interest rates go this high because these are levels where you begin to see real credit problems, something we haven't had to cope with in ages. not that the bank stocks had gone at you will a. they just feel doomed, especially the regional banks which are deep in bear market territory. >> the house of pain. >> now, of course if we get a different interest rate environment some of these can turn into bear markets. waiting for the employment number tomorrow morning at 8:30. again that's not the point. we lost a ton of groups and in their place we have picked up none. only tech has a real thesis right now and many feel that's overdone because they don't think ai can be that powerful. i think it can be. i think it's attractive. bottom line the bear is roaming free right now except in tech. it's irrepressible. without more sectors changing their coloration any rally will be constrained beyond an oversold pop. unless wage growth goes negative and interest rates finally retreat from their record run higher. tyler in california.

tyler. >> caller: big boo-yah from california. how are you doing, jim? >> good to talk to you, tyler. what's happening? >> caller: i'd like to give a shout out to my sister sasha. she's a new investor. i'd like to ask about clorox. despite the bad earnings yesterday. should that be a long-term investment or is that only a covid play? >> okay, i went over their different brands today to try to figure out who took share during the cyber hack. the thesis is a failed one. almost no one's going to take share from clorox because they own the best names in the business and no one's putting private label on clorox. so let's do this. let's just say that it only yields 3.8. i think you can go to 4 1/2 yield. let's do it by yield. and that's when you can start buying clorox and not before things. they don't seem to have their arms around all the problems with the hack. and it's only down 10% for the year. only. the universal universe of winners is narrowing right here right now. any rally could be constrained. and the bear might continue to roam free. on "mad money" tonight i'm laser focused on the consumer packaged goods stocks and the impact of

the glp-1s drugs may have on the space. and i'm hearing if that concern could be warranted maybe with conagra brands. and levi's reported after the bell. the quarter was not perfect. let's find out more. i'm running through the numbers, talking to the company's top brass. and the beer business continues to derive strength but conste constellation's stock sure didn't. what's happening there? i'm going to get a read on the sector and the stock with the ceo. so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. hashtag madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. meet gold bond daily healing. a powerhouse lotion that moisturizes, heals,

and smooths dry skin. with 7 moisturizers & 3 vitamins. and... new gold bond healing sensitive. clinically shown to heal & moisturize dry, sensitive skin. gold bond. you know when you have those moments? that time to reflect. to be like wow... what did i do to get here? (city ambient noise) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank brings security and a guarantee. that you'll earn a yield in the top 5% of competitive accounts. going, got you where you want to be. we're the partners for your next move. everbank. advantage, you (sfx: stone wheel crafting)

♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

thanks to the recent run-up in bond yields dividend stocks have been put through the meat grinder. that includes many of the food and beverage plays we've now realized will come under some pressure perhaps because of this new class of weight loss drugs, ozempic, mounjaro, more on that later. but at some point they become too cheap to ignore. take conagra brands, the packaged food powerhouse you know as bird's eye, healthy choice, slim jim, orville redenbacher, many others. price increases weren't enough to make up for a decline in volumes. still those price increases let them post a nice earnings beat. and management reiterated their long-term guidance talking about a strong end of the year. in response the market seemed confused conagra up and down 2.7% then rebounded to up 2% at one point before ending the day off about 2%. at this point the stock's now down roughly 34%. yield's 5.4%. is the worst behind them?

we'll got to find out. let's dig deep with the president and ceo of conagra brands, learn more about the quarter and what comes next. welcome to "mad money." >> hey, jim, how are you? >> i look at a stock that's down this much. the yield's 5%. and i'm not going to say wait a second everything's going great here, what happened? you've been pretty forward. there are some real issues. i want you to address them because one of them involves a 40-year trend that seems to have reversed and i want to know whether something fundamentally is wrong to frozen because that's so important to you. why don't you go over what you saw? because this was a little bit different from what i was hoping for obviously. but you stuck by what you think's going to happen in the second half. >> yeah, sure, jim. let's take it from the top. we had a very good quarter in terms of our supply chain performance, our gross markin expansion, our operating margin expansion and paying down debt. the soft spot in the quarter was on sales. you've got to keep in mind we're two years into the largest inflation supercycle i've seen

in my 32 years in the food business. and by and large the consumer's been very resilient. but over the course of the summer we did start to see some behavioral shifts. it was a paradoxical combination of selective splurging and also broad-based belt tightening. so maybe the same consumer would say the heck with it, i'm going to take i atrip this summer and i don't care what it costs. and a minute later they would reprioritize their purchases in order to create offsets. within food that meant some tailwinds for some businesses and some headwinds for other businesses. we experienced both. our multiserve meal business, for example, had a tailwind but our frozen single serve meal business had a bit of a headwind. now, that's a business that has been a juggernaut and has been growing for us for many years. we're the leader in the marketplace. we're the largest player in frozen food. so we don't look at this as any more than a temporary consumer tactic to try to create offsets for expenditures that they were determined to make over the course of the summer. >> tomorrow we get an unemployment number. one of the things that the fed is very worried about is

obviously wage growth may be too hot. jobless -- we had 3.6, 3.7% unemployment. why is that not res naitding more? we've got so many people with jobs i would think they'd be doing single serve, whatever they like, in the great frozen food category you have. >> well, you've got lower-income consumers whose household balance sheets have become very stretched. and where they typically rely on convenience items at the top of their priority list over the course of the summer when they did commit to other expenditures like travel they prioritized multiserve meals. think of that as stretchable meals that feed more mouths at once. and so we saw a bit of a mixed shift there. but one thing we've learned about the consumer over the years is habits and practices are very hard to change for the long haul and the single most unshakeable trend in consumer packaged goods in the last 50 years is the need for convenience because people live very busy lives. in food they want great-tasting food that's a great value that's healthy for you but they don't want cleanup, they don'twant prep and that's where frozen

single serve meals come in. we've got a phenomenal business, the best in the u.s. we're not concerned about the short-term behaviors because frankly we've got a multiyear, multidecade track record of growth in this area. >> so the "wall street journal" had this article today citing a morgan stanley study that talked about these new weight loss drugs. also for diabetes, other things. people are worried. people feel when walmart said look, there's been a little bit of a slowdown, that it's already these drugs. i mean, what's your big pic think about these drugs and what they can mean for conagra? >> yeah, i'll give you my thinking on that, jim. obviously, it's very early days. as my peers have said, no one really knows exactly how prevalent these drugs are going to become. but let's say they become more prevalent. if that were to happen, i believe we would be very well positioned. you have to keep in mind that health and wellness has always been a central part of our conagra way playbook, particularly in our two biggest businesses of frozen and snacks. take frozen as an example. our two biggest businesses are

bird's eye vegetables and frozen single serve meals like healthy choice. these are products that have great nutrients, low sodium, low fat, all the things you don't want are out of it but all the things you do want are in it. so if we were to find ourselves in a situation where suddenly more consumers are looking for healthier meals and portion control, products like bird's eye and healthy choice are incredibly well positioned and we'd be happy to turn those consumers into loyalists of our brands. similarly in our snacks business our top two snack categories are meat sticks and popcorn brands like slim jim and angie's boom chick-a-pop. these are healthier snacks. these are not cookies. these are not chips. these are not candy. so if we were to suddenly find snackers looking to rethink their current snacking choices for healthier alternatives, we'd be happy to welcome them to the family. >> i'm so glad you mentioned that. left out of all these stories, the biggest risk and the most concern that i see when i talk to the doctor community, you're not getting enough protein.

now, no one talks about that. can you double down on protein? because that is what is missing in the diet that must be had for people who are taking the glp-1s. >> yeah, our demand science team, jim, tracks all of these trends. and the definition of healthy has changed virtually nonstop since the '90s. at one point it meant less foot. it meant less calories. it meant lower carbs. it's meant grain-free. it's meant whole grain. it's meant fiber. it's constantly changing. so what we do is we study the current trends, then we design those trends into our products so that we're always contemporary and sxrechbt provo provocative. these days with these new drugs coming on it might mean things like portion control. it probably would mean things like more protein, more vegetable nutrition, fewer carbs. we've got all of that in our playbook and we can deploy it at necessary. >> terrific. i'm glad you explained it to everybody. in the meantime i know that because of the margins and expansion you've got no problem with the dividend. it's an easy do for you.

i just keep hoping you get to exactly where you say. you shuffled your portfolio so it's got all the things you need. i want to thank shawn connelly president and ceo of conagra brands for coming on the show. thank you, shawn. good to see you. >> thanks, jim. >> okay. "mad money's" back after the break. >> announcer: coming up, is this stock as rugged as the denim it sells? a look at levi strauss. next.

with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. the citi custom cash® card automatically adjusts to earn you more cash back in your top eligible spend category. hi.

you don't have to keep tabs on rotating categories... this is the only rotating i care about. ...or activate anything to earn. your cash back automatically adjusts for you. can i get a cucumber water? earn 5% cash back that automatically adjusts to your top eligible spend category, up to $500 spent each billing cycle with the citi custom cash® card. i love it. this is american infrastructure, a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪

is there any hope for the hated apparel stocks? tonight levi strauss reported and while the stock's down in after-hours trading this wasn't a terrible quarter. sales come in soft. earnings were a little bit higher than expected. management did lower their full-year sales forecast. and said the earnings would come in at the low end of the previous range. and that is not good. however, levi's finally seems to be getting its inventory in the right position. if you adjust for some quirky

issues inventory was a huge improvement versus the double-digit increases we've been seeing. excess inventory is the bain of all retailers. could it can be turning a corner? is this the bottom after a not great quarter? we spoke with chip byrd, the president and ceo of levi strauss and company. take a look. mr. berg, welcome back to "mad money." >> good to talk with you, jim. >> let's go over some of the things i think were a standout. first of all, it looks like your direct to consumer business is on fire. is that how people are nows chooing to be able to order levi's? is that the preferred way? >> yeah, i think our direct to consumer, we're really pleased with the results. we're up double digits. 13% growth. we grew in all three regions in all of our direct consumer channels. main line, outlet and e-commerce. and we also comped positively in main line, outlet and e-commerce

across all three regions. so clearly the consumer loves coming into our stores. the teams in our stores do a great job executing. and it really is -- strategically it is very, very important to us. it has been for as long as i've been here. in the last 12 years we've gone from it being 20% of our business to now over 40% of our business. we've set a goal to get it to 55% of our business over the next five years. so it is strategically really important. it's driving our results. unfortunately, you know, a really soft wholesale business globally offset all of that growth. >> but at the same time, because i care about the holiday season more than any other, you're coming in with inventory's okay, which to me says you're in a lot of full price sale. and that's very positive. >> yeah, our inventories are clean. the sense that we got with our customers is their inventories are clean too. you know, i'm hoping that that sets up a less promotional holiday period than what we had a year ago when everybody had

way too much inventory including us. we have been struggling with inventory. we were very high on inventory earlier in the year and we've been working really hard to get it back down. and now our inventory trends are very closely aligned to our revenue trends. but we still have more work to do there. and i think we still have plenty of opportunity to unlock quite a bit of working capital because our inventories are still higher than they need to be. >> so what would you say to how you get brick and mortar to do better? let me give you a thesis. everyone's really focused on this ozempic and these different drugs. i don't think it's wrong to ask whether there isn't a refresh, that people who are a 34 waist maybe they've got to go 32. 7 million maybe going to 20 million in this country. is that possible or am i just being fanciful? ? one of the things that did drive the category coming out of the pandemic was about 40% of consumers had a waist change. some people went up. some people went down. but that definitely drove it.

you know, we were also helped by a new denim cycle with a looser, baggier fit. you know, the denim category and the apparel category were both soft this last quarter. and you and i have been talking for a long, long time, jim. you know i am not the kind of guy to stand up and give a weather report associated with the business. but everybody knows this was the hottest summer that we've had in history. the hottest june, the hottest july, the hottest august. and our wholesale customers, their assortment is very, very narrow. they tend to sell mostly blue jean bottoms. and it's hard to sell a pair of levi's, blue jean bottoms, when it's 110 degrees outside. and i think that did kind of contribute to the softness that we saw in wholesale. you contrast that to our retail stores, our owned and operated stores where we're in control of the assortment. we had, you know, way more shorts. dresses, skirts.

you know, tank tops. things like that that were seasonally appropriate. we can adjust pretty quickly for the season. and i think that contributed to the stronger results in dtc. waist size change always drives new closet. >> so beyond you came on july 6th and said how you were really happy with the results. the impairment charge i'm sure there's something behind the $90 million impairment charge because you had some really -- you had sales up 25%. so it totally reconciled what you said on july 6th about sales. but i didn't understand that 90 million impairment charge. >> yeah, there are a number of factors that went into it, jim. valuations have come down. that certainly contributed to it. cost of capital has gone up. that's contributed to it. but i think one of the biggest dynamics is we've just been more disciplined than what we had in our acquisition plan in terms of new store openings.

and you know, at this point in time we've got five stores open. we're opening our fifth store here real soon. we'll have six stores open by the end of the fiscal year. we'll probably add another five or six or so next fiscal year. we're really trying to get to a profitable success model for brick and mortar retail. and then when we got that we're going to start stamping them out much quicker. we expected when we acquired the business based on the structural economics of this business that we'd be cranking out a lot more doors than what we've actually been able to do up until this point. so blame it on our being a little bit more fiscally conservative and also on valuations and cost of capital, and those are really the main contributing factors to the impa impairment. having said all of that, i said it last quarter, i'll say it again. we were up 25% on beyond yoga. this brand has got a really bright future. and you know, if you take a look at how long did it take lululemon, how long did it take athleta, some of the other

brands that have been around for decades now to really get to scale, we've just got to be impatiently patient to get this thing going and get that success model clearly identified. and then this becomes a big global brand driven by dtc. >> so you are sticking with the -- you think it could be a billion-dollar brand. because that's very important for your valuation that that happens. >> yeah. i mean, it's -- and the structural economics on this business are really, really strong. i'm not putting a number, a date associated with that billion dollars, jim. but when we bought it, it was less than $100 million. and what we're trying to get to is this -- a success model that's profitable and accretive that we can then -- and is investment grade so we can start investing capital into growing it more aggressively. and we're being disciplined about getting there. >> and i want to be sure -- you did lower your full-year sales growth but i don't get the sense you're worried about the holiday season in part because of the inventory. but it sounds like look, the weather can get better but

you're not pessimistic about the holidays. >> not pessimistic. i guess i would say cautiously optimistic. you know, the macro environment is clearly impacting our business, particularly in wholesale. we have two value brands, signature and denizen that are really targeted toward that value consumer in walmart and target respectively. those businesses were down double -- you know, big double digits. so that middle income, moderate income consumer, they're making tough budget choices right now and it's negatively impacting apparel and denim right now. but this too shall pass. and when it does what gives me great confidence in the future is the strength of our brand. and i've got all kinds of proof points. our gross margins. our a.u.r.'s tell up. the strength of our business. in fact, even here in the u.s. where wholesale was down double digits our main line business

that sells the most premium product that we got in our assortment grew double digits. so we've got a lot of strengths to lean on. we just have to get through this tough economic period and work with our wholesale partners to get that business growing again. >> fair enough. chip, you always tell us straight, and i really appreciate it. chip bergh, president and ceo of levi's. i love having you on the show. thanks so much. >> thanks very much, jim. great to be with you. >> "mad money's" back after the break. >> announcer: coming up, what can't beer do? how the suds powered constellation brands to a quarter worth toasting. next.

- i got the cabin for three days. it's gonna be sweet! what? i'm 12 hours short. - have a fun weekend. - ♪ unnecessary action hero! unnecessary. ♪ - was that necessary? - no. neither is a blown weekend. with paycom, employees do their own payroll so you can fix problems before they become problems. - hmm! get paycom and make the unnecessary, unnecessary. - see you down the line.

what do you do when one of your favorite stocks turns into a punching bag? well, you do some homework to figure out if you're getting a buying opportunity or maybe the bull thesis is broken. take constellation brands, stz, the beer wine and liquor company best known for corona, modelo, pacifico. constellation peaked at 273 and change in august. since then it's been slammed along with the rest of the market. i thought the company could turn things around when it reported this morning but the stock sold off hard, down 3%. what the heck is going on? when you look at the overall numbers, constellation gave us a small revenue beat and big earnings beat. management raised their full-year earnings forecast. the core beer business is on fire. they raised their beer guidance too. but the company also has a much smaller wine and spirits division that's not doing so hot. they saw the huge investment in canopy growth which is viewed as an overhang. it did so by less than it beat expectations in the quarter. something wall street does not like. we own constellation brands for the charitable trust and our

conclusion is to buy into this weakness. bill newlands is the president and ceo of constellation brands. get a better read on the quarter. mr. newlands, welcome back to "mad money." >> thanks, jim, good to be here. >> let's get right to the top. beer was absolutely terrific. solid results. i like the depletions, which is what matters. growth of nearly 8%. led the industry. so why do you think that didn't have more of an impact on people who own the stock or the analysts who talk about it? >> well, you touched on it in your opening. i think it's a great buying opportunity. when you think about the success of our business, we just continue to outperform the industry in great ways. modelo was up almost 9%. pacifico was up 15. the chelada business was up 40. and we still see very solid success with corona. so our business is performing, particularly on the beer side, very, very well. and we expect it to do that for a long time to come. >> you do have an $800 million authorization but you've got a november 2nd meeting.

and i would prefer you to come out with all guns blazing. i know you're not going to say right here, listen, we're authorizing all that tomorrow. but when your stock falls 3% when you see those numbers, it's got to be tempting to think 240 seems awfully inexpensive. >> it certainly is. it's a great buying opportunity for many of your listeners, jim. we look at this all the time. and obviously our history has been in these kinds of instances we're not afraid to buy back stock. we recently, as you know, had a $5 billion buyback scenario. and as you point out, we still have 800 million available from our board to do more buybacks. certainly the situation is not reflective of where we see our long-term success. >> now, let's talk about the turn in wine and spirits which is so needed. your wine brands are absolutely terrific. spirits i know you have to do some sprucing up. the numbers were i'm sure not up to your expectations. but it seems like you do have a plan. i got some sense of the plan, but maybe you can tell our viewers more about this division. i hate this division hurting what's going on with beer.

>> certainly. a couple of things were in play here. one is we've done a lot of change to our business. three years ago 2/3 of our business was in the mainstream. and the mainstream is very unhealthy. today it's 1/3. and even though that area continues to drag on the overall business the top end of our wine business is doing quite well and taking share. we're going to continue to evolve our portfolio to the higher end of the business. and secondarily, we've always shipped -- depletes and shipments have not always matched each other. we've insisted this year that they do that. what that means is the first part of the year goes against a much tougher scenario from last year. that should reverse itself in the back half of the year. so we expect over the course of the whole year the wine and spirits business is going to look just fine and will be within our guidance. >> bill, what's happened to the so-called clears and the browns? they don't have that pickup i expected. it's almost like you had a dry january and it stayed dry.

>> to some degree. we still think there's lots of opportunity. you know, things like ready to serve. our ready to serve business with high west and our mi campo on the it canla side are doing extremely well. there is continuity continued evolving of what the consumer is picking up. but we think we're well positioned to take advantage of that. >> i am surprised. i spoke to molson coors the other day and it looks like with you guys too. people are liking these non-alcoholic beers. now, you and i go back a long time. that was something that frankly it didn't taste great, so people didn't order it. what's happened? because these numbers -- the growth in these numbers tells me that people have discovered it's something that is worth drinking, that it's tasty. >> it is. when you taste corona non-alcoholic, which is as probably know their number one share gainer in the non-alcoholic sector this past quarter, it tastes very good. it tastes very similar to corona

extra, which has always been the problem, is consumers haven't always liked a non-alcoholic or a very low alcoholic version. we've solved for that. and it's showing in the results. similarly, we introduced oro, which is the first light beer under modelo, and that has performed extremely well. and it all speaks to the betterment trend. you're seeing a subset of consumers look for betterment. we see the same thing in our wine business. maomi has brought out a lower callower alcohol pinot noir. and kim crawford the same in sauvignon blanc. and both of those have been leading their sectors as well. so it's certainly a trend. i.e. betterment. >> speaking of trends we had the "wall street journal" today talking about ozempic. walmart talked about how there's maybe a slight drop in the food category. is it also impacting beer, or is beer kind of exempt because it's a different kind of occasion? it's more of an experiential

drink than it is a drink people are worried about whether it's putting on weight or not. >> i think you're right. we've seen no visible impact. and as you know, we engage with consumers all the time. no one has ever brought that up in our discussions with consumers. part of it is the whole alc alcoholic experience is around social interaction and that's not always about the betterment scenario although it is with a subsegment as we talked a moment ago. we think this is quite overblown as it relates to our category. >> where are we with the balance sheet? i know you're a stickler, you don't want to have too much debt, you want to be able to buy back as much stock as you can but you don't want to put any sort of rating in jeopardy. are you satisfied with where you are? do you think you can still drop that leverage? >> we think we can drop the leverage. we've said we're going to get back down to three. as you know, it went up a shade when we did the collapse of the b shares. but we believe we can get back to three. we'll remain investment grade. it still allows us to do both buybacks and dividends.

our capital allocation process has been very disciplined over the last several years, and we plan to keep it that way. >> and how is it with your new board members? suggested by l.a. partners. >> it's been very good. our collaboration with elliott has been very positive. they've reinforced many of the things that we were already doing, and they've been a big help to us in our preparation for our investor day. so that interaction has been quite good. it's always been very helpful what we've done on a governance basis. as you know, we've changed our board to some degree. we have two new board members that brought increased financial expertise to the board. our two longest-serving members as part of refreshment stepped down and did not run for re-election. and we're out searching for a new independent share of our board who we think could also add some value. we're very excited about some of the governance improvements we've seen over the last year. >> just one last thing. i was trying to figure out the bar business versus the store

business where people are buying and not. bar not as strong versus the actual supermarket? >> supermarket sales have been very strong. in fact, one of the things that's been interesting to watch is our data has been much stronger than we normally see. there's always a little bit of delta between that and your actual depletions. that has expanded because many of these chain operations are doing a much better job comparatively than what some of the smaller shops are doing. relatively to on premise, on premise i'd say the single biggest thing that's caused a little bit of challenge is football season has been late to start because the weather's been so warm. there's a little bit of -- i'm getting cold, i'll go inside, i'll watch the game. that hasn't really picked up this year to the degree. although at least in chicago the weather's about to drop out of the floor. that will pick up. >> i'm looking for the november 2nd meeting. you maybe there will be some

news. we always welcome you. bill newlands is constellation brands president and ceo. thanks, bill. good to have you on. >> thanks, jim. >> "mad money's" back after the break. >> announcer: coming up, cramer takes your calls. and the sky is the limit. it's a fast fire "lightning round," next. ( ♪♪ ) we're in the security business... our job is to help people feel safe. not only our customers but those who matter most to them. just like our company does for us. we have great benefits from principal. so i know i'm taken care of. and (pause) not just me. but the ones who matter most to me. ( ♪♪ )

♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall.

in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business. it is time! it's time for the "lightning round" on cramer's "mad money"! play until you hear this sound and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money."

start with mitchell in texas. mitchell. >> caller: yo, cramer. what's up, man? i want to give you and the team a big shout out, man. i really appreciate it. >> team is fabulous. makes me look good every night. what's happening? >> caller: this stock's losing a lot of money right now. i bought 100 shares. i just bought another 100 yesterday. >> i can't be the ax because i did like the stock at higher levels. but the company's making money and i think it's a great experience in the situation but i have been wrong. let's go to beau in alabama. beau. >> caller: jimmy chill, how are you doing? >> the chill man is in the house. we're doing fine. how about you? >> caller: not too bad. not too bad. let me get some pros and cons on ticker sabr. >> when i come up with anything travel that's still working i'm going to have to go to becoming. i think bkng is the stock you want to be in. not sabr.

let's go to raj in california, please. raj. >> caller: yes, sir. this is raj pagai from california. i'm concerned regarding blackberry stock. >> you know what, i saw them trying to -- it's almost like they're arranging the deck chairs on the "titanic," trying to spin off iut. i'm not a believer. i've been a believer for ten points. i'm not changing. let's go to chad in washington. chad. hey, chad, speak to me. come on, big guy. >> caller: hey, boo-yah, mr. cramer. >> yo, yo, what's happening? >> caller: i've got a stock that's making me pull my hair out, and i don't have much left. do i buy, hold or dump under armour? >> oh, boy. it's so low. but we've got to see something. we've got to see a good quarter. we have to see something that tells me that stephanie leonard is doing a good job because down 35%. i don't have enough data to make me say buy it. let's go to xwblake in new york. blake. >> caller: hey, jim.

i've had some shopify stock for the last few years. should i buy more or -- >> no, don't buy more because you've got a good position. i think we have to wait for it to come down to buy more because it sells at 97 times earnings. it's one of the few winners in this market where we have a lot of losers but don't buy any more right now. let's go to david in michigan. >> caller: boo-yah, jim. thanks for taking my call. >> oh, sure, dafld, thanks for calling. >> caller: of course. my investment club theta capital at the university of michigan looking at a biotech company with a really promising pipeline. what's your opinion on vertex pharmaceuticals? >> vertex is excellent. and your club really knows what it's doing. that is an amazing company. a year ago a couple guys that went to the super bowl said listen, jim, you've got to recommend the stock. i pulled the file, looked at it and i said when it comes in i will recommend it. it never came in. you've got a winner there in vertex. mark in wisconsin. mark. >> caller: dr. cramer, thank you for taking my call. >> oh, you're quite welcome. how can i help?

>> caller: i.t. services. i currently hold it. i have a massive position of 100 shares. so my question is should i be adding to ticker symbol kb, kendrell -- >> that last quarter was good. i think we're going to get rid of the overhang, start seeing some good numbers. i think you've got a winner. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by charles schwab. coming up, eli lilly sees a bright future with this agile new drug. can its popularity impact other big sectors? stick with cramer.

nonsense about this new class of weight loss drugs. think ozempic, we govy. mounjaro. i own a ton of lilly for the charitable trust because r precise will i because this diabetes slash weight loss drug that can help with blood pressure. also curtailing heavy drinking and people sufferingmounjaro's

approved for diabetes but it's selling like mad. hard to find. novo nordisk has approval for both. lilly expects mounjaro to be approved for weight loss by the end of the year although it's already being used off label. i want to make it clear because it's just now dawning on people there could be a real disruption here. i wouldn't be surprised if it alters the way people eat and drink stushlly. just yesterday waufrmt the largest grocer in the country said it's beginning to have an impact on sales. suddenly they recognize there could be a big bottom line impact for everything in the food and beverage base. when walmart makes these comments you go from anecdotal worries about the food and beverage stocks to empirical existential concerns about entire store aisles. there's a lot of conjecture about how many people even take these drugs. morgan stanley projects 24 million people, nearly 7% of the u.s. population, will be taking one of these medications by 2035. i personally think that's a lowball number. in august we had eli lilly's

excellent ceo on the show who i think explained the impact of these drugs very well. >> before we had prozac people thought doctors would tell you well, you're just a little sad. we know that's not true. there's something called clinical depression. we now treat it like a disease. i think in five, ten years we'll look back and think about chronic weight management and obesity the same way. that we used to say well, why don't you just eat a little better and exercise? and we'll learn that a lot of people will need a medication to control their weight adequately over time. >> and with these drugs on average they cause you to lose 18% of your body mass. of course we don't know exactly how they work but we do know they change our tastes. sometimes radically. specifically they make it so you no longer crave snacks. it's like they give you an immunity to refined sugar. you don't even miss it. on top of that when you're taking one of these drugs you feel full almost instantly. you end up eating less overall and maybe even saving some money. that's why these weight loss drugs are causing radical moves in anything food-related because any company that makes food, especially snacks, will most likely see its growth capped or even eroded.

yes, the drugs are that remarkable. once tens of millions of americans are taking ozempic or mounjaro you better believe the packaged food companies are going to take a big hit. if walmart's already seeing weakness in the food aisle can you imagine what happens when eli lilly which has huge capacity coming on gets approved for weight loss or it stops you from having two drinks a night because it makes alcohol as attractive as drinking water? how about costs? cost is almost $1,000 per self-administered shot which should be taken once a week. aside from diabetes doctors want to prescribe either drug for the chronically obese and for those with high blood pressure that's resistant to current drugs. insurers will most definitely cover that. but if you don't fall into those categories, if you're just kind of overweight you're going to have to pay out of pocket. and that's a big factor. however's, the drugs have so many potential uses i think a tremendous number of people will be reimbursed for the use. we don't know which food companies will be hardest hit and they'll certainly try to fight back with all sorts of new entries. but the bottom line is these new weight loss drugs will dent sales to the point where the food and beverage stocks deserve

to trade at a lower price to earnings multiple especially since they had anemic growth to begin with. and that's exactly what's happening right now. and a heck of a lot of people will be a lot healthier and wealthier for it. i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim >> right now on last call, could deficits matter? they may. they could be costing you. uaw on strike. taunting the big three on twitter. reviving? a group of alleged victims want to bring back the cryptic exchange and one of them is here. a glass of orange juice is going to cost you. why prices are smashing records. amc entering its taylor era. the sales figures for her upcoming concert movie are