Iluvbrits,
I full heartedly agree with Lizbud! Why do you want to punish your dog for a natural instinct that can be prevented simply by not giving her the treat that causes the unwanted behavior. If you do want her to have the treat then simply let her be while she enjoys it. Never give the treat when children are around and you should never need to be harsh with her.

If you don't crate train then don't start now just because of this. Leave the crate in the basement for storage! I never punish my dogs by putting them in their crate. I put them on a down stay or make them lay in a seculed spot but never in their crate. The crate should be a place they like to go to and associated with good things.