How OSI Industries Has Been Taking Over The Food Market For Half A Century

For the past half century, OSI industries has been continuously taking over the food market by expanding its operations in each wake. For instance, in 2016 the company enlarged its processes in Chicago after the purchase of a food processing facility storage that was previously owned by Tyson Foods.

The facility lies on a 20,000 piece of land and is strategically situated in one of its many properties. Apart from its convenient location, the fact that it is extra big offers enough space for OSI to meet the needs of its ever-growing customer base. This explains why the firm’s management is particularly enthusiastic about this new purchase. However, the group only announced the acquisition of this new property but did not release the specific terms of the sale. Before Tyson group transferred the ownership of this asset to OSI industries, it used it as a plant for its prepared food operations, but that was later put it up for sale in 2015 saying that, it would help to improve its productivity.

Besides the Chicago based Tyson plant, OSI industries also acquired a stake in Baho food in 2016. Again this acquisition is just part of OSI’s expansion plans. According to the company’s spokesperson, the acquisition of stakes in Baho foods will help OSI expand into Europe.

Why Baho Foods?

Baho Food is a renowned manufacturer and supplier of deli meats, snacks and also convenience foods in Europe. The fact that it already has a well-established market is one of the factors that fueled OSI to acquire the firm as it will help to expand the firm’s customer base. Baho Foods has five subsidiaries located in different parts of Germany and Netherlands which provides a bigger market for OSI industries.

Apart from its two acquisitions, OSI also made two more acquisitions in 2016 adding up to its list of assets, and also helping it inch closer to its goal of becoming a world leader in the food processing industries. The other two acquisitions include Flagship Europe and OSI food solutions Spain.

About OSI industries

Even though it is one of the most renowned food processing firms today, OSI began as a small food market located in Illinois in 1909. It was established by Otto Kochowlsky and back then it was known as Otto & Sons. However, through determination and great leadership, it has grown into the food giant we see today.


OSI Group’s Global Expansion Strategies

OSI Group is a privately owned food manufacturing, and processing company started in 1909 in Oakland, Chicago. The company has more than 65 branches in 17 countries globally and specializes in products associated with beef, pork, poultry, sauces, dips, and Condiments to name but a few. The company takes significant steps to reach its customers. The measures include the opening of new plants, buying, collaborating with other like-minded partners, and renovating the older plants to boost their production.

In the recent years, the company has used these tactics in both the domestic and international expansions. The success in the initiatives is because of excellent management skills of Sheldon Lavin and David McDonald. Sheldon is the Chairperson and the Chief Executive Office while David is the President and Chief Executive Officer.

Locally, OSI Group purchased Tyson Foods in 2017 to boost the North American access. Tyson Foods had a space of 200,000 square feet and OSI saw that as an opportunity to get space for more expansion. Even though Tyson Foods specialized in poultry products, the group intended to use that space to introduce more products in the plant’s production lines. Internationally, the company reached out to Creative Foods formerly called Flagship Europe to cater to the European market. Creative had previously collaborated with Calder Foods, which specialized in sandwich fillings, sauces, and dips. It meant that the collaboration between OSI and Creative Foods boosted the market in a big way. Additionally, OSI acquired Baho Foods, which has five subsidiaries in Germany and the Netherlands to cater to the European market. Due to Baho Industry’s presence in over eighteen countries across Europe, the acquisition meant that OSI Group strengthened the ability to serve its customers.

OSI Group decided to boost the production of its plant in Toledo Spain to increase its production and cater for Spanish supplies. The plant was initially producing 12,000 tons of poultry products annually, but after renovations, the plant doubled the output to 24,000 tons annually. Additionally, since the plant also specializes in other products, the total annual production rose to 45,000 tons annually. The company installed high productions lines, made expansions in the production and storage units to achieve the targets. It also came up with the idea of using the heat produced by the production system and refrigerators to boil water as a way of reducing electricity consumption. For best results, OSI set up a quality control kitchen to ensure the products met the customers’ expectations.

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