OSI Group and McDonald’s: A Century-old Symbiotic Relationship

When OSI Group McDonalds was chosen as the supplier of food products for the Olympic Village during the 2008 Beijing Olympics, it highlighted the company’s growing influence not only in the Chinese food market but also its soaring global brand. OSI Group’s metamorphosis from a family-owned corner butchery into a global leader in the value-added food products is the product of strategic marketing and partnerships. One such collaboration that played a vital role in the growth and development of the company’s fortunes and brand is the century-old symbiotic partnership it has with the fast food giant, McDonald’s. Even with technological revolution sweeping across the food processing such cryogenic food processing, the partnership has held steady with both partners reaping big. Read this article at Gazette to know more

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One of the longest business partnership globally, OSI Group McDonald’s relationship began in 1955, just over four decades after Otto Kolschowsky had founded OSI Group McDonalds. The partnership was necessitated by McDonald’s move to open a new outlet in Des Plaines, Illinois. By this time, OSI Group’s reputation for high-quality meat and meat products was growing fast, and the company had opened new operations in new locations in Illinois in addition to Oak Park where it started. The Group easily became one of McDonald’s suppliers of meat and processed meat products.

Partnership beyond Illinois

When Ray Kroc, the founder of McDonald’s franchise in Des Plaines took over McDonald’s, the relationship between Kroc and Otto Kolschowsky’s grew further and became even more personal. Also as McDonald’s franchise grew with the opening of new franchises and restaurants all over the country, OSI Group McDonalds adopted new technologies and ramped up its production capacity to meet the ever-growing demand for McDonald’s signature meat-based meals such as hamburger. The partnership continued with McDonald’s expansion to new markets overseas including China where the Group became the supplier choice for other fast food companies such as Subway and Burger King among others. To further cement its partnership with McDonald’s globally while also increasing its presence, OSI Group McDonalds has entered into other strategic alliances and business deals including the purchase of Baho Foods and Flagship Europe. Additionally, the company has formed mergers with other companies. These partnerships have enabled the company to expand its product range to suit it better client base including McDonald’s.

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OSI Food Solutions Receives Its Third Globe of Honor

OSI Food Solutions began as a butchery in Chicago, Illinois. This was in 1909. By the 1950s, the company had partnered up with McDonald’s – when the franchise was first born. They have been supplying McDonald’s, and other fast food restaurants, with fresh meat products for years.

OSI Food Solutions’s success could be owed to their motivation and drive. The company is always expanding and purchasing new facilities. One of their recent acquisitions was Flagship Europe, a supplier of frozen poultry, pies, sauces, and dressings.

“This is another exciting and progressive development for Flagship Europe,” said Russell Maddock, a chief executive of Flagship Europe. He went on to explain that the increased resources that will be available to his organization will allow them to reach new clients and new markets.

David McDonald, the president and COO of OSI Food Solutions was equally optimistic, saying: “Adding Flagship to our OSI Europe business gives OSI a broader presence in Europe. The company’s portfolio of products and brands complements OSI’s current processing strengths.”

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Baho Foods, a Dutch company, was also another recent acquisition of OSI Food Solution. Baho Foods produces snacks, deli meats, and other convenient items. Along with Baho Foods, the purchase comes with five subsidiaries: Q Smart Life, Bakx Foods, Henri van de Bilt, Gelderland Frischwaren, and Vital Convenience.

Baho Food’s managers will remain in the company. They will work alongside some of OSI’s top people to come up with a growth strategy to benefit both companies.

OSI Food Solutions has also received three Globe of Honors. They received the award in 2013, 2015, and 2016. The Globe of Honor is only given to companies that put thought into their environmental management. The 2016 award ceremony was held in Drapers’ Hall in London, England. OSI Food Solutions was just one of the 18 companies to receive the award.

Source: https://stellenmarkt.faz.net/jobsuche/osi-food-solutions-germany-gmbh.47447.html

David McDonald – From Intern To President And COO At OSI Industries

Starting out as an intern to Sheldon Lavin, David McDonald is currently OSI Industries’ Chief Operating Officer and President. McDonald grew up in northeast Iowa and graduated from Iowa State University, earning a bachelor’s degree in animal science. While still committed to the Iowa State community, he acts holds a leadership role at one of the largest companies in the United States, and a global leader in the food industry.

OSI Industries has more than 20,000 employees and over 65 facilities in 17 countries. It was listed as the number 58 largest private company in the United States by Forbes in 2016, and has a net worth of $6.1 billion. The company was founded in 1909, and despite having a legacy of more than 100 years, OSI Industries have not been resting on their accolades, and has been expanding aggressively in the last decade.

By the time David McDonald joined OSI was expanding, and he was able to witness the company expand its global reach. In the 1980s and 1990s, OSI expanded with a number of joint ventures with companies from South America, Central America, the Pacific Rim, and Europe. The joint venture with K&K Foods of Taiwan resulted in the establishment of the Asia-Pacific division, the same year McDonald was hired.

He notes that 30 years ago when he joined the company, OSI Industries had an appetite for growth that remains to this day. He also stated that the company’s vision has not changed much throughout the year, but OSI relentless push to deliver more and improve drives the company’s growth.

McDonald played an important role in the acquisition of Baho Foods and Flagship Europe. Baho Foods is a Dutch company that produces deli meats and snacks, and the acquisition helps OSI Industries expand its services in the Netherlands and Germany, as well as other countries where Baho has presence. Flagship Europe, currently known as Creative Foods Europe, is a supplier of bespoke products.

The purchase of Flagship Europe and Baho Foods are key moments in OSI’s long-term growth plan. The company is continuing to branch out, expanding the list of products that they offer, besides their traditional meat-protein products. In 2012 a new facility was opened in Illinois that specializes in frozen entrée products, and in 2014 a plant in California was opened, producing beans, tofu products, and salsa. The company also has an OSI facility in Mandanapalle, India that produces frozen vegetables.

OSI Industries opens new plant in Toledo, Spain

The recently acquired OSI Food Solutions in Spain is expected to significantly revamp production for OSI Industries. The newly opened Toledo plant has undergone major improvements with focus being made towards expanding the production capacity from 12,000 tons to 24,000 tons of chicken products per year. The ambitious plan cost OSI Industries over 17 million Euros in renovation and expansion costs, an investment that would help turn the company around.

OSI focuses on making the Toledo plant a dedicated chicken products outlet that would help the company suffice the European market demand. While increasing chicken supply, the newly refurbished and commissioned plant would also create new jobs for the market while improving on the regional economy. OSI Industries also targets using the plant as a hub to open other subsidiaries in the region as well as neighboring Germany in the long term.

The company’s entrance to the Spanish market would give it a strategic advantage to harness the expanded food consumption trends in the region. Neighboring nations including Portugal have their economies highly inclined towards food production and consumption. Expanding production to this effect gives OSI Industries the right vantage point to ensure that the demand for chicken is met. There has been, for instance, an 8 percent increase in the demand for chicken over the past three years. Such a demand would be prospected to rise in the near future, something that would revamp OSI Industries’ prospected growth.

According to OSI Industries’ president, David McDonald, the company’s entrance to the Spanish market comes at the right time when the food service industry is experiencing a high demand for new and healthy products. To ensure that the company meets the demanded production attributes, new production systems have been put in place. Improvements such as production surveillance cameras and automated food handling mechanisms would give OSI Industries the right working environment to meet the prospected demand of 24,000 tons of chicken products.

Production at the Toledo plant would also be a game changer in numerous ways. The company, in 2016, received a food production improvement kitty amounting to 1.5 million Euros. The funds would be invested towards revolutionizing the agricultural research and production systems which would go a long way to ensure that the products OSI supplies to the market are in tandem with the food safety standards. Committed to exemplary customer service, OSI would be expected to expand to other markets soon.

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OSI Industries Was Founded By A German Immigrant With Big Dreams

OSI Industries started out as a humble, corner butcher shop that was founded by the German immigrant, Otto Kolschowsky. While it is known, today, as one of the largest custom food providers in the world, its roots go back to the west side of Chicago, or more specifically, oak park, where it served local customers. During the early part of the 20th century, Otto Kolschowsky came to the United States with hopes to start a new life. He was part of the large number of immigrants who were coming to Chicago from Germany, and it only took him a couple of years to establish his butcher shop. Due to his excellent business practices and offerings, his business would grow to include wholesale offers just ten years after it was started up.

In 1928, Otto Kolschowsky decided to rename his business to Otto & Sons in order to represent his two sons whom were now working with him. After a handshake agreement between the owner of McDonald’s and Otto Kolschowsky, Otto & Sons would become one of the earliest suppliers of beef for McDonald’s. Who would of known that McDonald’s would grow so rapidly and become the king of fast food, but it did so, and this forced Otto & Sons to expand their business even further. Over the next twenty years, the company transformed from being a local supplier to a global supplier, and in 1974, Otto & Sons constructed a facility that would be dedicated to only providing McDonald’s with the products it needed.

Throughout the 1970’s and 1980’s, Otto & Sons would continue its expansion by building new facilities in the United States. They also expanded into Spain and Germany where McDonald’s was doing the same. During this time, Otto & Sons changed their name to OSI Industries as the new CEO, Sheldon Lavin, took over some of the duties for the two brothers. A worldwide expansion began to take place and OSI Industries moved into Mexico, Hungary, Brazil, Austria, and Poland. Later on, the company expanded into the Philippines and China and also continued to fill-out its operations in the United States. With strong leadership guiding the company, there would be no slowing it down.

Today, OSI Industries is a global force to be reckoned with, and it all started out with the story of a German immigrant who had big dreams to make it in the United States.