Why OSI Group Grew At A High Rate

OSI Group is a food processing company with its headquarters in Aurora Illinois and has a workforce of 20,000 employees. The company has more than 65 subsidiaries distributed in 17 countries.

The company started operations in 1909 as a small butcher shop, which was started by a German immigrant called Otto Kolschowsky. The company operated as Otto & Sons from 1928 up to 1975 when it rebranded to OSI Group. Ray Kroc, the McDonald’s restaurants owner, appointed Otto & Sons the primary meat products supplier, a deal which improved the company’s growth greatly. McDonald’s restaurant opened branches very quickly, and this led to the high demand for meat products that triggered the speedy growth of the company. The company grew very fast, and the company changed to OSI Group to acquire a better global recognition.

By early 1980, Sheldon Lavin who was the company’s investment consultant in the early 70’s had been appointed the Chair and the Chief Executive Officer. His appointment was contributed by his efforts in Otto & Son’s capitalization. As the McDonald’s restaurant grew internationally, OSI worked hard to open branches internationally too to keep the supplies in check. The group entered Germany and Spain in 1978 and 1980 respectively, which marked the beginning of the company’s global growth. Lavin facilitated the company’s growth and diversification processes through his experience in the investment and banking sectors. The company grew to one of the most respected companies and appeared in the 2016 Forbes list of the top privately owned companies. OSI Group was ranked 58th having made sales of $6.1 billion.

Some of the steps OSI Group took to maintain the supplies included partnerships, purchases, and refurbishment of its plants. The company purchased Tyson Foods in Chicago to boost the American supplies while in Europe, it acquired Baho Foods and Creative Foods formerly called Flagship Europe. Baho Foods is a company with subsidiaries in the Netherlands and Germany. Through these subsidiaries, marketing of the both companies’ products would easier. For the markets in Spain and the neighboring countries, the company refurbished the plant in Toledo Spain, which resulted in double production. OSI has become one of the big food companies in the globe. The company has attained much wealth which has facilitated to its growth and development. David McDonald and Sheldon Lavin are the key players in the growth of OSI.

Search more about OSI Group: https://discoverorg.com/directory/company/OSI-Group/7670

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