OSI Group is a company that has gone from being a Chicago butcher shop to one that is an international firm with 20,000 employees around the world. Otto Kolschowsky was the founder of OSI company, which he did two years after arriving from Germany. He soon expanded his business into also being a wholesale company. As his two sons and entered the business he called his company Otto & Sons, the name they would operate under until 1975.
It was Otto & Son’s relationship with McDonald’s which really grew this company. When the very first McDonald’s franchise was opened in Illinois by Ray Kroc he chose Otto & Sons as his fresh beef supplier. As more and more franchises were opened in Illinois supplying McDonald’s became the main business of Otto & Sons. When flash freezing was invented in the 1960s it became easier and less expensive to handle meat which meant that McDonald’s could cut their number of beef suppliers down to just four companies, Otto & Sons and three others. In 1973 this company built their first facility for processing meat which was just dedicated to what they were supplying to McDonald’s OSI Food.
1975 was a consequential year for Otto & Sons. The sons of the original founder were at retirement age and looking for new leadership. They changed the name of the company to OSI Group that year. They also brought in businessman Sheldon Lavin as their business partner and their company’s CEO. From 1978 on McDonald’s started opening international locations and so OSI Group did so as well. Their first European facility was in Germany in 1978 and a few years later they opened one in Spain. OSI acquires UK’s Flagship Europe.
From the early 1980s on OSI Group expanded into countries such as Brazil, Mexico, Poland, and Austria. They also grew operations along the Pacific Rim. They established OSI Asia-Pacific, a joint venture, with their first plant in Taiwan. They also started a joint venture in the Philippines two years later and expanded into China in 1992 when they formed what’s called a Wholly Foreign-Owned Enterprise there. Quite a bit of their growth has been in China in recent years. They also started supplying processed meat to many other companies besides McDonald’s. In 1994, for example, they partnered with Nation Pizza and Foods in the United States. They also started to supply chicken in 2006 when they acquired Moy Park in the UK.
To know more click: here.