OSI group: a global leader in meat processing

On April 8, 2019, OSI Group the food processing giant announced the acquisition of Rose Packing Company Inc., a leading producer of pork products for foodservice and retail customers

Rose Packing company is a family-owned business that has stood the test of time(Somewhat like OSI group). It currently is an operation of 700 employees.

The merger with Rose Packing Company will further solidify OSI’s position as a global leader in the meat processing industry and add substantially to OSI’s current 20,000 employees in 65 facilities across 17 countries.

In 1909, a German immigrant named Otto Kolschowsky opened a family meat and butcher shop market in Oak Park, to serve his community. The business expanded into the wholesale meat sector and by 1928, it was named Otto & Sons.

In 1955, the early days of MacDonald’s and the franchising business model, Ray Kroc, who was at the time, a franchise agent made a handshake agreement with Otto Kolschowsky’s sons, which stated that the brothers’ company would be MacDonald’s major supplier of ground beef.

When Ray Kroc became CEO of MacDonald’s a few years later, Otto & Sons serviced the fast food’s companies meat needs. As MacDonald’s business expanded across the US, so its number one meat supplier’s business expand with it.

New technology in the 1960s: flash freezing-cryogenic food processing, a process of quickly freezing food with nitrogen made food processing more cost-effective and Otto & sons the precursor of OSI group more profitable.

In 1973, Otto & Sons built its major meat plant in West Chicago. The facility was fully equipped with Nitrogen freezing machines to service MacDonalds huge and growing demand for hamburger patty. In 1975 the company was renamed OSI industries.

In 1977 OSI ventured outside Chicago, first to Utah and then to other parts of the US. This trend continued for the next decade. Since the late 1980s, OSI has been expanded into Europe, Asia, and South America.

OSI group is headquartered in Aurora, Illinois in the United States.

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David McDonald Talks about OSI Group’s Success in China

OSI Group, one of the largest meat producers in the world, has been successful in making China one of its global market places. The company has been in the country for more than 25 years, celebrating its 20th-year milestone last 2012. Together with China’s economy, OSI Group has grown as one of the most recognized meat processors in the country.

One of the biggest projects of OSI China was to supply the provisions that are needed for the guests when China hosted the Olympic games in Beijing last 2008. It had to deliver 113 tons of beef, chicken, pork, eggs, and dehydrated onion in which it successfully delivered without problems and complaints. This was good news which cemented the trust of the Beijing Olympic Committee to David McDonald and the OSI China. The firm has been supplying international brands such as McDonald’s, Starbucks, Papa John’s an Burger King.

President and COO of OSI Group David McDonald have been handling the operations of the company and OSI China for years. He finished his bachelor’s degree at Iowa State University with Animal Science and has working experiences in Marfrig Global Foods prior to OSI leadership. In one of his interviews, he answered how OSI China became a success story after its first entry in the country in 1992.

According to McDonald, one of the catalysts of OSI China’s success is because it understands the importance of becoming a local brand. The firm understands that it needs to bring solutions for its local customers. Building a long term partnership is important for this to happen.

David McDonald also emphasized that although flexibility in operations is important, it is also important to stay true to your principles and never compromise quality services. One of the best ways to understand the local market is to always listen first, understand the business culture, and deliver a solution for the local market. Time and patience are great investments for making relationship an building trust.

In over 20 years of operating in China, one of the biggest challenges for McDonald and the firm is to stay patient in understanding the business culture. This step takes a great deal of time, personal time even, for him and his teams. However, being in the country is necessary in order to achieve the goals of OSI China and the whole firm.

The Expansion of OSI Group

One usually hears the saying, “You can’t climb the ladder with your hands in your pockets”. Most people hear this saying and others throughout their lives; however, few feel as though they are successfully climbing. There are few people in the world that are considered “To have reached the top”. And those people are celebrities, public figures, politicians and other people relative to that nature. OSI Group is not a name commonly heard and yet, the story of this company: OSI’s story is the perfect story about starting small and growing until an impact is made internationally.
It is clear that the story begins in the early 20th century in Chicago, Illinois. OSI Group was at the time a small butcher shop… a dream that would completely change.
The change started in 1940 when Ray Kroc partnered with Otto & Sons (OSI Group’s name at the time). Otto & Sons took this opportunity with McDonald’s to be first supplier delivering ground beef. This may seem like a minuscule detail but at the time, the meet was delivered freshly cut and there was no other way to receive it.
As everything in life grows, more is expected and once Ray Kroc bought the company: McDonald’s, Otto & Sons was about to grow also. Otto & Sons was now about to be the supplier of every McDonalds opened at the time and all future stores. Their name was then changed to OSI to coordinate with the new global demand. But the company name was not the only thing to change.
“To be in denial about change is futile. Adapting to change ensures our future. Quickly adapting to change gives us a competitive advantage over those who do not,” said by McDonald himself. It may have occurred that fresh meat delivered globally probably was not the greatest idea. And so OSI would start flash freezing their food which meant the food goes through a cryogenic food process. This allowed OSI to help McDonald’s create a consistent product.
As the article, “David McDonald: From Iowa Farm to a Global Leadership Position” says, “OSI has continued its steady march of growth”. OSI Group has business with McDonald’s, Baho Food, Flagship Europe, and the company that owns Tyson Foods. OSI Group has climbed the ladder and though the company has reached the top, OSI Group will continue to climb.

OSI Group Global Rise

OSI group has become one of the most worldwide food providers in recent time, and it has made a significant development since its invention. Due to its development growth, which is visible and its market growth value, it has become the envy of various business in the same category, with offers of partnership from different parties. OSI group came up with the technology which they used to freeze up their products and consequently led to cost reduction and the expansion growth of food processing worldwide.

The company’s growth in the United States led to a partnership with the nation pizza company, and they later opened a company in Chicago where they were dealing with the processing of sausages, bacon, and hotdogs. Globally, expansion of the company has led to the opening of another franchise in India, where the food processing markets were allocated in Punjab and Bangalore in India.

The establishment of another franchise of poultry and beef in Germany which was allocated in Gunzburg-Denzigen was to provide the group with the distribution of food products to its markets globally. This helped the company to rise and not face challenges of food distribution globally and direct to its market. This also facilitated to the opening of regional offices in Germany.OSI group established separate joint ventures in German with the supermarket chains.

Its global development led to the company winning awards because of their exemplary efforts. The productivity of foods made the company a more popular food processing enterprise. Besides processing of meat, the company opened a processing plant in Riverside, California for the production of salsa and beans. As a result of the company’s expansion, a processing plant was opened for the production of vegetable to the restaurants.

The OSI group built some facilities which helped them in the development of quality products for their partnering clients as it is the role of the OSI group. The company’s global development has boosted the economy and improve meat production in various countries which they are in partnership with. It has also built trust in them while creating an interest in doing yearly business with them.

Their LinkedIn Profile: https://www.linkedin.com/company/osi-industries