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

Associations

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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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.

The influence of OSI industries in society

OSI Industries is a known business venture which has specialized in the food sector. Therefore, it is concerned with the processing and supply of food products. The idea to start the business came from immigrant businesses. The founder of the company had started the company as a family business and using a different name. However, the Second World War brought about too many changes including relocation.

As the saying goes, change is the only inevitable thing. Therefore the company was revived in the United States where it started as a small retail shop. The supply of food was done only in a small area making even the management to be simple and not complex. The management was run by the family only but the effectiveness ensured growth.

Years down the line, the OSI Industries has grown to be a large company. It changed from a retail shop to opening several wholesale and retail shops. As a result, there had to be several changes to be done to ensure growth is constant. For instance, the management of OSI Industries took a turn from small management to a large management circle. There had to be other professionals who had to be inducted into the company for smooth operations to take place.

The company has grown to be international and stills prove to be effective in the services it provides. For this reason, it has managed to get several awards mostly because of great management and services provided. It has evolved technologically to provide more products as the channel to process food products was created. In addition, it has made several partnerships with other investors who are skilled and are equipped to promote the production of quality products and effective supply. Therefore, the company has gained more trust from the public located in different places due to its efficient and reliable services and high-quality food products it provides.

Moreover, the company has grown to gain a wider market for its products. The markets provided are present due to the opportunity to work with several countries whose public trust the products provided. To add on that, some of the branch countries such as China will help grow the market to larger scales. The economy of China is growing at a higher rate and the country has decided to join the World Trade Organization. This will pave the way to better chances of growth as OSI Industries is at the verge for a wider market. The market availability will be facilitated by the interaction with more countries.

For More info: www.foodprocessing.com/top100/profiles/osigroup/