Sheldon Lavin has long held a dream of making OSI industries one of the largest food processors and distributors in the world. To achieve this he has come with several strategies that include aggressive expansionary measures that saw OSI establish outposts in different parts of the world, strategic partnerships, and adopt new technologies.
OSI Industries unique and rather innovative expansion strategies saw the food processor list among top 20 leading food manufacturers in the world. Sheldon and his team are confident that they can bank on these strategies to claim the number one spot. These strategies include:
Establishing new facilities
By the time OSI industries turned 100 in 2018, it had managed to open up over 65 processing facilities in 17 countries across the world and manned by over 20,000 employees. Setting up these facilities was Sheldon’s primary goals soon after taking over the Food Company and assuming the positions of CEO and Chairman. He would spend a significant portion of the company’s revenue upgrading new systems in the existing production facilities and establishing even more modern facilities across the world. Visit their facebook page.
While setting up new facilities as a means of expanding a company’s operations has its perks, it is also rather costly and even more time-consuming. OSI Industries would, therefore, result in acquiring established food companies in other parts of the world as a means of expanding on their production capacity. The effectiveness of the method lies in the fact that it takes less time and provides a ready market for OSI’s products. The company, therefore, saves on time, marketing costs and training staff.
OSI Industries has not been so keen on mergers as a means of expanding their global reach and market but they still turn to it once in a while in the case of strategic markets. A case in point, the OSI Australia merger with the country’s leading Poultry manufacturer, Turi Foods. The two meat brands merged to form Turosi, a 50/50 partnership where they share marketing, production, and other operational costs as well as profits. The biggest take away from the merger is that both brands now have aces to the previously inaccessible markets that where either previously dominated when they were rivals.
Read more: https://www.glassdoor.com/Overview/Working-at-OSI-Group-LLC-EI_IE19677.11,24.htm
OSI Industries came from a humble beginnings and is quickly becoming of the largest food providers across the world. The company employs 20,000 employees from 17 countries. In these 17 countries, they have 65 facilities. OSI Industries’ story starts with a man by the name of Otto Kolschowky. He moved from Germany to America. He opened a butcher shop in Chicago. He continued to see his business across Chicago. His business continued to grow and was rebranded as Otto & Sons. The Kolschowky’s sons, Arthur and Harry, joined into agreement with Ray Kroc to become the beef suppliers to his Illinois McDonald restaurant. Kroc bought out McDonald’s franchise rights and became CEO. The Kolschowky’s sons were now part of the McDonald corporation.
Kolschowky brothers continued to supply Kroc’s McDonald with fresh beef for their hamburgers. In the 1960’s, a new development was made in keeping food fresh. Food could be flash frozen with liquid nitrogen. This development would help the brothers to deliver fresh frozen beef to McDoanld restaurants. In 1975, the Kolschowky brothers opened up a food processing plant specifically to meet the needs of McDonald’s restaurants. Otto & Sons was quickly growing into a nationwide supplier. The name was changed to OSI industries in 1975. In that same year, Sheldon Lavin was hired as partner of OSI.
In the 1970’s, McDonalds continued to grow and OSI industries continued to grow right beside them. OSI built more facilities outside of Chicago to help keep up with McDoanlds growth. McDonalds was growing rapidly in the United States and started to globalize their brand. Both companies started opening in other countries, such as Germany (1978) and Spain (1980). As OSI continued to grow, Sheldon Lavin was Chairman and CEO of OSI Industries. OSI continued to growth and worldwide food industry. In 2016, Forbes listed OSI as 58th most profitable large company in the United States. They racked up $6.1 billion sales in that year alone. OSI continues to grow it brands outward with bussiness in South America, Asia and Europe. OSI is helping to create jobs in countries all across the world. OSI Industries is a symbol of hard work and planning ahead can pay off.