Category: Food Industry
OSI Group is a food production company that has headquarters in Aurora, Illinois. Its operations are however in different places. Currently, they are in 25 countries. The company has over 20,000 employees and is ranked as one of the biggest private companies in the world. According to Forbes list, OSI is the largest privately owned food company in the United States and ranks number 8 among all private companies in the country. Much of the efforts that have led to this growth have come from the current CEO known as Sheldon Lavin. He has steered the company in the right direction and has ensured that the company is performing well as per his wishes.
Sheldon Lavin was brought in the company in 1975 to facilitate the management of the company. With OSI getting massive demand for its products even overseas, it needed a manager who could lead its international growth. There was a need for capitalization of the company before it broke into the international market and this would be done by Sheldon Lavin who was ready to change the fortunes of the company such that it would become a leading firm in the globe. OSI Group acquires Baho Food.
In the few years that followed his entry into the company, one of the things that he did was to facilitate growth of the business. The company only had one production plant and one client who was the McDonalds. Sheldon did not like this model of running a business, and he decided to take the company through another phase o growth that would see it take to the international without depending on McDonald’s. There were so many opportunities for the company, and Sheldon Lavin has managed to prove that through the success that he has recorded so far with OSI Group.
Since the 1980s, the OSI Group has been going through different phases of development that has seen it move almost to all continents in the world. Sheldon Lavin is still pushing the company further and wants to make sure that it has moved to all the countries in the world. OSI Group is over a century old, but it seems like it will last for many more.
To know more click: here.
OSI Industries is the innovative brainchild of Otto Kolschowsky, a German-immigrant who migrated to Chicago in the early 1900s. It began as a family-owned butcher shop and meat market. Kolschowsky contracted a significant deal with Richard and Maurice McDonald- the founders of the largest fast-food chain in America, McDonald’s. It was well on it’s way to becoming a global force in the food processing industry.
Hamburgers were the staple of McDonald’s therefore, OSI Industries, formerly known as Otto & Sons, was met with the task of supplying the ever-growing chain with a consistent and economically-friendly supply of ground beef throughout the US. With the groundbreaking technology of cryogenic food processing, OSI began flash freezing their beef- creating an avenue to provide their beef to an ever-expanding McDonald’s at an economical rate. OSI broke off in two different sectors- the dedicated McDonald’s supplier and Glenmark, which supplied local restaurants and retail markets with their beef.
An investment consultant, Sheldon Lavin, was made a partner in 1975. Soon after, OSI Industries took its company global by expanding to Germany and Spain in 1978 and 1980-respectively. With his savvy sophistication and negotiating skills, Lavin became the chairman and CEO of OSI Industries in the 1980s.
In 2016 it was named the 58th company on the Forbes list for privately owned businesses with sales upwards of $ 6 billion. It continues to play an important role in the food provider industry.
OSI’s global expansion included Austria, Brazil, Hungry, Mexico, Poland, and the Pacific Rim. In the late 1980s, it joined with K & K foods in Taiwan- dominating the industry in the Asia-Pacific market. They later added a second plant in Shanghai in 1996.
With the creation of the (WTO) World Trade Organization, they partnered with the growing China industry and began providing products for companies such as Papa John’s, Burger King and Subway. It collaborated with the Nation Pizza and Food establishment, which produces sausage, hot dogs, and bacon. OSI acquired the U.K. company Moy Park and began processing poultry.
OSI’s main plant remains in West Chicago, However, it has expanded worldwide and has opened several plants in China and Europe. It acquired a controlling stake in the company Baho Food– a Dutch manufacturer of meat and food products, which is operated in the Netherlands and Germany. With so much activity in Europe, It opened an office in Gersthofen, Germany, in 2016.
Beginning as a small butcher shop in the city of Chicago over a century ago, OSI Industries is now a super force globalized by technology and innovation.
To know more visit @: www.foodprocessing.com/top100/profiles/osigroup/
OSI Food Solutions is one of the top 100 processed food companies in the United States. According to Forbes, as of the end of 2016 it brought in $6.1 billion in revenue each year and was ranked as the 58th biggest private company in the nation. Its headquarters are just outside of Chicago, Illinois. It is owned by Sheldon Lavin who is the CEO and chairman.
Under Sheldon Lavin’s leadership, OSI Food Solutions is now an international company that has 65 food processing facilities and more than 200,000 employees. They have a global supply chain that delivers food to restaurants around the globe including North America, Europe, and Asia. They are known in the food industry to have the highest standards when it comes to quality, safety, and environmental responsibility. In addition to restaurants they also supply processed foods to grocery store chains.
Most of what OSI Food Solutions offers are protein-based. They can get food to their clients that can be either raw or fully cooked as well as fresh or frozen. Their facilities are customizable and so when they deliver fresh beef patties, for instance, they can be customized to whatever size and shape that individual client needs. They also supply some vegetable, sauces, and dough-based goods to some of their clients.
One of the nations that OSI food Solutions has facilities in is Spain. They have an existing food processing facility in Toledo, Spain. They recently introduced a new high capacity production line in this plant. The result was that they were able to double the amount of poultry they process. Before this production line opened they could process 12,000 tons annually and now they can process 24,000 tons.
In total, OSI Food Solutions processed 45,000 tons of poultry, beef, and pork at this facility. They hired an additional 20 people for this new line and so now employ 160 in this city. The protein they process is sent to their clients in both Spain and Portugal. Their managing director in this region of the world, José María del Río, said that demand for chicken has been soaring which is why they needed this new high capacity production line. He said that demand for chicken over the last 10 years has gone up by 6% each year and over the past three years by 8% annually. The new line also incorporates a food defense system as well as indoor cameras to maintain quality.
OSI Food Solutions Info: de.wikipedia.org/wiki/OSI_Food_Solutions
International companies also operate locally and any organization with several branches worldwide cannot afford to run all of them in the same manner. There are so many regulations, talent pools and cultural nuances that affect the general running of a company. In some industries like the food industry, diverse customer taste buds affect the running of such companies. OSI Group president, David McDonald, explained the need for companies in the food industry to be well positioned.
OSI Group’s Networks
According to David McDonald, the OSI Group has taken great steps in ensuring its competitiveness and relevance in the industry. The group has ensured that it has a great global network with people in all its plants or offices globally. He explained that as much as the group runs a global operation, it has its own local management teams installed to help in understanding the prevailing tastes and culture.
OSI Group is aiming to ensure its sustainability through the opening of more plants worldwide to sustain its appetite for expansion. The group also focuses on product development and capacity in order to offer more to its esteemed customers. These products are developed with the consumers’ tastes and preferences in mind due to the changing consumer trends. A lot of consumers are becoming more sophisticated and demanding when it comes to food choices.
A higher number of consumers are leaning towards food products that are organic, natural, tasty but healthy and cost-effective. Mr. McDonald holds the opinion that it was extremely necessary for the OSI Group to initiate a partnering process with its consumers to give them the exact products that they want. The group also engages equipment manufacturers with a view of coming up with processes that guarantee food quality and safety. Further, it consults with its food suppliers to ensure that they grow their products in the right way.
About David McDonald
McDonald is the current COO and president of the OSI Group. He was the chair and currently sits at the board of the North American Meat Institute. He remains an autonomous director at the Mafrig Global Foods S.A. he holds an Animal Science degree.