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Cramer welcomed back Bruce Carbonari, president and CEO of Fortune Brands (FO), to the show to discuss his company’s future prospects. Carbonari explained that while Fortune is tied to the housing market, most of Fortune’s products sell into the remodeling market and not the new home market. Cramer said 67% sell of FO’s home products sell into the remolding market. Fortune also has a diversified portfolio of other products like liquor and golf balls. Cramer asked Carbonari why FO sold its US wine business to Constellation Brands (STZ). Carbonari said they sold the low end wine segment because it wasn’t very profitable and consumers didn’t show brand loyalty like in spirits. He said Fortune’s strategy is to invest in and grow its own brands, rather than buy new brands. Finally, Carbonri said the golf side of the business is growing both in the US and abroad and FO is positioned to benefit. Cramer said he is bullish on Fortune. Once the housing sector rebound he thinks FO will take off faster than anything else.
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