With 20,000 employees at sixty-five facilities in seventeen countries around the world, the OSI Group is one of the largest food providers in the world. The company is still growing and is evolving from it’s humble beginnings. OSI Group was started with the American immigrant experience. Otto Kolschowsky was part of a thriving German-immigrant community located in Chicago, Illinois. At this time German immigrants and people of German descent made up 25% of the cities population. In 1909 after two years of arriving in the United States, Otto Kolschowsky opened a small butcher shop on the west side of Chicago to serve his community. This can be viewed as when the first OSI Group location began. By the end of the World War 1 Kolschowsky expanded his food company and started dabbling in the wholesale side of business.
In 1955 Ray Kroc opened the first McDonalds restaurant in Des Plaines, Illinois. During that time, he was still a franchise agent for Richard and Maurice McDonald, who opened a family restaurant in 1940. Even though McDonald’s expanding into a franchise at the time was still only a concept, Ray Kroc made an agreement with Otto Kolschowsky’s sons Arthur and Harry, that they would be the franchise’s ground beef supplier. Within a few years time, the McDonalds corporation took off and would soon become one of the most recognized brands in the world. One of the main missions of the OSI Group throughout the years has to continue to provide customers with a consistent product.
The main product for McDonalds were its hamburgers. At first this was a difficult task, but then in the late 1960’s a revelation happened and a new technological breakthrough made it easier and more affordable to provide excellent customer service with consistency. Flash freezing, or the process of food processing which it is quickly frozen using liquid nitrogen, made the food industry have new opportunities for product expansion. In 1973 Otto Kolschowsky and his sons built their first plant dedicated to flash freezing process hamburger patties specifically for McDonalds. Otto and his sons soon changed their name from Otto & Sons to OSI. OSI Group is now one of the largest private companies in the United States.
The OSI Group is one of the largest meat processing and manufacturing companies on the planet. They are actively operating in more than 17 countries, and as of 2018, the company has more than 50 facilities operating in different cities across the world. One of their newest facilities can be found in Toledo, Spain. Through their subsidiary, OSI Food Solutions, the Toledo meat processing facility stated that they could increase meat production in a few months. The people of Spain and Portugal have an increasing demand for chicken meat, and the OSI Food Solutions stated that they could produce a lot of chicken meat for the local population.
The OSI Food Solutions stated that they had invested more than €17 million for the creation of the new production facility. The high-capacity production line will be able to create 24,000 tons of manufactured meat, doubling the capacity of the previous production line. The upgraded production line in Toledo, Spain is seen to boost the sale of meat in the region, particularly chicken meat. According to the head of the facility, they will be able to provide chicken and other meat types to the growing population of Spain and Portugal, and they could manufacture it in a short amount of time that would enable its freshness when taken to the market or the grocery.
The high-capacity facility in Toledo, Spain is also expected to produce 45,000 tons of livestock meat, and because of the huge demand for the workforce, the OSI Food Solutions have opened jobs for 20 people who would be operating the high-capacity facility. This places the total labor force at the Toledo facility to around 140. The creation of a high-capacity production line in Toledo, Spain is the answer of the OSI Group to the growing demand of the Spanish and the Portuguese population for chicken meat. According to statistics, the demand surged from 6% to 8%, and experts believe that this figure is more likely to go up.
David McDonald, the current chief executive officer of the OSI Group, stated that the creation of a high-capacity production line in Spain would improve their operations in the European continent. He also said that there are plans to introduce the same facilities to other areas around the world which have a growing demand for chicken meat. He claimed that by building facilities like the one in Toledo, Spain, the OSI Group manages to save a lot of money and increase their production.
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OSI Group is a large company that supplies food products to its huge customer base that exists all around the world. The company rose from a small meat market and butcher shop that was created by Otto Kolschowsky who was a German immigrant to Chicago, Illinois. Eventually, Otto began to offer wholesale services and and within ten years, he renamed his company Otto & Sons to recognize his two sons who had come aboard. It wasn’t long before Otto seized a huge opportunity, and this was to become one of McDonald’s first beef suppliers. Back then, McDonald’s was just getting started, so the two companies grew together over the years afterwards.
OSI Group, which was still named Otto & Sons at the time, slowly grew out of its role as a regional supplier and began the process to becoming a worldwide enterprise. It didn’t happen right away, but the relationships with McDonald’s moved the company in that direction, because it challenged Otto & Sons to come up with more innovative ways of transporting and producing the amounts of beef that the company required. Flash freezing-cryogenic food processing became a real thing during these times, and then the company decided to build a facility that was, exclusively, dedicated to McDonald’s.
In 1975, Otto & Sons officially renamed itself to OSI Group, and this happened during the time when the family-run business decided to hire outside help. This outside help came in the form of Sheldon Lavin who was originally an investment consultant for the company. The company opened its first facility outside of the Chicago area in 1977, and this facility was located in West Jordan, Utah. Many other facilities were opened in the United States after this, and then OSI made its first move to become a global company by opening a facility up in Germany as well as Spain.
OSI Group quickly expanded into a force to be reckoned with, and with Sheldon Lavin at the helm as CEO, there was no stopping it. Today, OSI is one of the largest food supply company’s in the world. It is listed as being a $6.1 billion company that is ranked in the 58th spot on the Forbes list of the largest private companies. Not only does the company plan on continuing its expansion all over the world but also in the United States where an abandoned Tyson Foods plant was recently.
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Without a doubt, the American food industry is vastly expanding with time. However, for some entrepreneurs, this industry is not large enough to accommodate every business unit. For such companies, the extensive world is an oyster. Therefore, seeking international growth and expansion by delving into global supply seems like the best option. Other advantages appended to global expansion include sales increase and the reduction of over dependence on the various markets used to supply local products. When speaking of global expansion and its impact, one company that has managed to remain relevant in its quest of spreading its services across international markets is OSI Food Solutions.
OSI Food Solutions has over the past years gained a strong presence in the American food manufacturing industry. Initially, the company went by the brand name of Otto & Sons. Under the leadership of Mr. Otto, the company supplied meat based food into the major retail stores in Chicago. Later in the years, the company landed the opportunity to supply McDonald’s with meat alongside other snacks. With that project, Otto and Sons became a relatively larger company that could now serve the needs of major food companies within Chicago. As such, there was the need to employ a finance manager who would oversee the proper allocation of resources in order to deal with the rising demand from consumers. Luckily for the company, Chicago had an expert finance manager by the name Sheldon Lavin. Therefore, the management hired him to handle their business. As it turned out, Lavin was good at account management. For starters, he evaluated the demands of clients and measured the cost benefits of supplying these demands. Later, he delved into major strategies that would foster global expansion. Because of his contribution to the evolving needs of consumers, Lavin bought off a huge number of controlling shares from the company. This move made him a major shareholder when the company earned a new name as OSI Group.
Since then, the company has maintained unwavering devotion to its client’s demands. Moreover, OSI Food Solutions has garnered a huge market share in China in the past ten years. Over and above, this market share has contributed to the growth of the country’s economy. Even so, the story does not end there for OSI Food Solutions as in the last three years, it dedicated vast resources to major expansion projects like the acquisition of Baho Food. The Dutch-situated manufacturer of meat-based foods expanded OSI Group’s manufacturing capacity.
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