As cost-conscious consumers trade down to cheaper store brands, private label drug maker Perrigo has benefited, the company’s CEO told Cramer Tuesday.
“The challenges in the economy are forcing more and more people to move towards the store brand private label,” Joseph Papa said.
And that has resulted in a significant growth in their business, he added.
Even when the consumer starts to feel more confident, he expects them to stick around. He said 91 percent of the time people stay with the store brand after making the switch, even when the economy gets better.
The company is also focusing on international opportunities, Papa said, and is looking to expand in Europe and Asia.
“We think there’s a great opportunity to bring our products … to the rest of the world [and] geographically expand our footprint,” he said.
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