OSI Group And McDonalds History

Sitting at a revenue of 6.1 billion dollars, ranked 58th on the wealthiest private companies list in the USA and having employed over 20,000 employees all around the world, OSI, is among the largest meat processing company in America and has a long relationship with McDonalds, one of the largest fast food company in the world.

OSI started from very humble beginnings. A German migrant, Otto Kolschwosky had just moved to Chicago, Illinois which was the central district for industrial activities in the country. After the end of two years since migrating, he established a butchery in Oak Park and worked hard on it, and after ten years he moved it to Maywood. The business was thriving, and he had it renamed to Otto & Sons in 1928. During the boom in economic activity in the post-war era, Ray Kroc, a franchise agent under Richard & Maurice McDonalds opened up the first McDonalds in Indes Plainnes. He had made a pact with Otto’s sons, Arthur, and Harry to supply him with fresh meat for his business.

Kroc later bought out the McDonalds trade and Otto & Sons kept supplying him with meat as his business expanded. McDonalds demand continued to grow, and the weight was on Otto & Sons to supply. With the invention of cryogenic food processing, it made it easier for them to handle the high requests. In 1973, Otto & sons set-up a plant specifically to supply McDonald in West Chicago.

Due to the growth in the company’s reputation, they changed their name to OSI Group McDonalds to reach out to more markets. Due to the growth of the small business into a large-scale supplier, the OSI Group McDonalds needed more professional management, and Sheldon Lavin joined them as a partner in 1975. Sheldon was their financial consultant and had been a source of funding for them in 1970.

In 1977, OSI Group ventured outside Chicago in West Jordan, Utah which was in line with OSI Group McDonalds fast growth in the market. In the 1980s, Sheldon Lavin took over the leadership since breaking out into the international sector required a person with experience and proper expertise to manage such a business with such a large scope of operation. The two companies have continued working together up-to-date.

Over the years OSI Group McDonalds has evolved into one of the most important meat suppliers with international quarters in Austria, Poland, Mexico, Brazil, and the Philippines.

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OSI Industries Expands To More Diverse Markets

In the last 5 years, OSI Industries has shown a lot of effort when it comes to expansion both in the foreign and domestic markets. There has been a significant increase in demand for many of their products around the world, especially when it comes to chicken. This passion for growth has been taking place for years but has been spearheaded since the 1970’s by Sheldon Lavin. Recently, the company made some considerable purchases and acquisitions that will lead to their reach being increased significantly.

One of the areas in which OSI Industries has included in their expansion is in their hometown. In 2017, the company purchased a plant that had formerly housed Tyson Foods in order to increase their production capabilities in North America. They already have another facility relatively close that will continue to operate as it has been. The Tyson plant that was purchased by OSI Industries will increase their operating space by 200.000 feet. While Tyson mainly focused on producing different types of poultry products, there are plans by OSI Group to produce different types of meat as well.

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In Spain, OSI Industries has also been hard at work expanding as the area is one of the most quickly growing when it comes to demand for chicken. A big effort in expansion took place in Toledo, Spain that will increase their production capabilities by 100%. While they used to be able to produce around 12,000 tons a year, this number will increase to 24,000. In total, this leaves the company with the ability to produce around 45,00 of chicken, pork, and beef a year.

In the Netherlands and Germany, Baho Foods was a big player in snack foods and deli meats. With the acquisition of the company by OSI Industries, the company plans to expand to the Netherlands and the further into the rest of Europe. Najo Foods is present in 18 countries already and is working with OSI Group to see how they can continue to expand their reach. The executives at Baho are excited to be a part of OSI and trust in its capabilities.

For more information about OSI Industries, just click here.

The Sustainability Initiatives of OSI Group

In 1997, a small, locally owned butcher shop in Chicago began expanding its business. Soon after its initial expansion efforts, the butcher shop hit it big and landed the deal of a lifetime: from that point forward it would be the main supplier of hamburger meat to the famous franchise eatery known as McDonald’s. All of McDonald’s restaurants located in the midwest would now get their meat from the butcher shop that would later turn into OSI Group.

Since then, OSI Group has been a major leader in the food production industry and continues to be so today. OSI Group is under the leadership of Sheldon Lavin, and the company has won many reputable awards for sustainability. One of the company’s top priorities is creating a sustainable and eco-friendly environment within their production. Some of the awards OSI Group has managed to acquire include the North American Meat Institute’s Environmental Award, the California Green Business Award, and the Global Visionary Award, among others.

Today, the company has put in great efforts in order to lower their carbon footprint. It is now on the edge of new technologies to increase sustainability and encourage the same from its suppliers. They aim for better management of natural resources as well as increasing the welfare of animals. Sheldon Lavin’s commitment to a more sustainable future also involves major waste cuts with the goal of a better long-term economic value of the beef industry. To know more about the company click here.

OSI Group has also recently merged with Turi Foods. Turi Foods, an Australian poultry farming company, is one of the largest suppliers of poultry in all of Australia, serving supermarkets, restaurants, and butcher shops alike. The merger will enable both companies, which have very similar core values and business practices, to serve their customers in more innovative ways, hoping to build a world-renowned food service group. Merging with Turi foods has allowed OSI to reach an even broader client base, as Turi Foods services not only all of Australia but also most of the Asian-Pacific area of the world. Both Turi Foods and OSI believe in creating a sustainable production environment and the 50/50 merger will also focus on increasing sustainability efforts.

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