Turning back to human products, Papa said consumers are realizing that all of Perrigo's products meet the same Food and Drug Administration standards as the national brands but cost 25% to 30% less. That's why 91% of people who try a store brand or private label product stay with that product. It's also a boon for retailers, Papa said, because they can enjoy higher margins.
Papa explained that one of Perrigo's successful tactics has been, of all things, packaging. He said by making packaging similar to that of the national brands, consumers are encouraged to compare, which begins the process of giving Perrigo products a try.
When asked about catalysts for the second half of the year, Papa touted his company's generic product for the popular Mucinex. He said that product, in all its variations, will be a big driver for next year's cold and flu season.
Cramer said with so many good things happening at Perrigo, investors need to look beyond the negative headlines.
Executive Decision: Matt RobertsIn a second "Executive Decision" segment, Cramer spoke with Matt Roberts, president and CEO of OpenTable (OPEN), the restaurant reservation system that last week posted a two-cents-a-share earnings beat on a 15% rise in revenue. Shares of OpenTable are up 28% since Cramer last spoke with Roberts in February 2012. Roberts had a positive story to tell, saying dinner seating was up 28% for the quarter and the company's mobile offerings have been "massively positive" for reservations. He said OpenTable still only accounts for 15% of all reservations in North America, leaving a lot of room for growth. When asked about some of the negatives raised by analysts, Roberts explained that sales in the UK have not been strong, but they're also not a big headwind. He also disputed the notion that his sales force is becoming less productive. He said sales are seasonally weak this quarter, but there are no problems with his sales force overall. Finally, when asked why restaurants would be willing to share their revenue with OpenTable, Roberts explained OpenTable offers an amazing return on investment for restaurants, including the ability to remember diner preferences like gluten-free or booths versus tables. In addition, OpenTable makes it easy, and less embarrassing, to cancel a reservation, giving restaurants the ability to get that table back compared with having a no-show.
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