Browse Category: OSI Industries

OSI Industries’ upward trajectory that dates back over 100 years

OSI Industries dates back to the 20th century’s turn in 1909 when Otto Kolschowsky, a German-immigrant in Chicago, opened a butcher shop and retail meat market to serve the community in Oak Wood. After doing good business, he expanded into wholesale and started operating in Maywood. In 1928, he rebranded the company as Otto & Sons which continued to be stable and prosperous.

In 1955, Ray Kroc, a franchise agent for the McDonald couple, opened the first Illinois McDonald’s restaurant. Before starting the restaurant, he had agreed with Otto’s sons that they would be the fresh ground beef suppliers of the franchise. Ray later became the CEO of McDonald’s after buying out the couple and as the restaurant grew, so did Otto & Sons as their primary task became that of supplying beef to the local restaurants. Otto & Sons built a factory solely dedicated to the product line of McDonald’s. In 1975, the advancement in technology that changed the butcher shop into a manufacturing venture resulted in Otto & Sons becoming OSI Industries. Still, in 1975, the leadership also altered and Sheldon Lavin, who had been an investment consultant at Otto & Sons, joined the firm as a partner.

They concentrated its manufacturing capabilities alongside McDonald’s growth and as the restaurant entered the international market, so did OSI Industries. Sheldon became CEO and Chairman of the company in the 1980s, and his experience has led to significant growth that continues to date. The expansion and joint ventures that dominated the firm’s strategic growth plan in the 1980s and 1990s have led to OSI’s recognition as being among the most crucial food providers worldwide.

In the 2000s, OSI Industries began a poultry processing product line which commenced with Moy Pak’s acquisition in 1996. It bought Amick Farms, another poultry company, in 2006. In China, OSI entered a joint venture with Weihai Poultry in 2010 as well as another in2011 in Fujian province that became SunOSI. In the last five years, OSI has focused its expansion on Europe with the establishment of a processing plant in Poland in 2013, and joint ventures started in the UK and Germany in 2014. In 2016, it obtained a controlling stake in a Dutch meat manufacturer Baho Foods. OSI also bought Flagship, rebranded in 2018 as Creative Foods Europe. OSI Industries has also opened a research and development and won awards for efforts in environmental impact.

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OSI’s expansion to new markets

For years, OSI industries has been a world leader in the production of value added foods in the food industry. They have kept ahead of their competition by ensuring all their clients get high quality products regardless the location. As a result, they are a customer favourite.

OSI industries main goal is to ensure that the masses are supplied with quality food products. This is their inspiration in maintaining high quality standards. Their desire to supply the masses with high quality products has resulted in the company expanding to new markets. One of their strategies has been to set up plants of their own in new areas and send out marketing teams to create awareness and sell their products. The other strategy is to acquire already existing food companies.

To acquire a company, OSI buys the company’s controlling shares of the company and runs it as one of its own. Acquiring new companies has made it easy for OSI to venture into new markets. Since each company the acquired already has a customer base in the region, OSI has had an easy time selling its products in these markets. OSI takes advantage of the good relationship each acquired company has with its customers. This has increased their presences in the world.

Since the strength of this acquisition strategy is in customer relationships, OSI Industries has been keen to maintain the acquired company stuff. This is because, in acquiring the company, OSI is not looking to tear down the original one and build a new one. They are looking to strengthen already existing systems. They pass on the leadership strategies they have used to ensure consistency of quality production to the acquired companies.

Making new acquisitions has also given OSI an opportunity to increase its product line. Every acquired company has a unique product that sets them apart in the market. Once acquired, all its products become part of OSI’s product line. OSI now has a wide variety of products for its clients to choose from.

OSI Industries has acquired include Baho foods, Tyson Food Plant and Flagship Europe.

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