OSI Group

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OSI Group
Industry meat processor
Founded Chicago, United States (1909 (1909))
Headquarters Aurora, Illinois, United States
Key people
Sheldon Lavin (CEO)
Products Food
Number of employees
20,000 (2016)[1]
Website osigroup.com

OSI Group is an American privately owned holding company of meat processors that service the retail and food service industries with international headquarters in Aurora, Illinois. It operates over 65 facilities in 17 countries.

History[edit]

Early history[edit]

In 1909, German immigrant Otto Kolschowsky opened a family meat market in Oak Park, Illinois[2] two years after his arrival in the United States. In 1917, he expanded into the wholesale meat trade and relocated the business to nearby Maywood, another Chicago suburb. The company became known as Otto & Sons in 1928. Over several decades, Otto & Sons established a local reputation for offering quality meats.[3]

In 1955, Ray Kroc opened the first McDonald's restaurant in Des Plaines, Illinois with Otto & Sons as the supplier of fresh ground beef patties.[4][5] When Cryogenic food processing, a method of preserving fresh food through liquid nitrogen freezing, emerged in the late 1960s, Otto & Sons accepted Kroc's offer to become one of McDonald's four meat suppliers. Later, a fifth supplier was added.[3]

In 1973, Otto & Sons opened its first high-volume meat plant in West Chicago with specially developed patty-forming machines and liquid nitrogen freezing tunnels. At the same time, it formed a separate unit called Glenmark, for all non-McDonald's business. In 1975, the company changed its name to OSI Industries. Glenmark was later acquired by Best Chicago Meat Co. in 2011.[6]

Expansion[edit]

In 1990, OSI partnered with General Milling Corporation and Alaska Milk Corporation to establish GenOSI, a Philippines food processing company.[7] In 2002, OSI China was established in Beijing.[2][8] In 1995, OSI entered the India market with the creation of its subsidiary, Vista Processed Foods.[9]

OSI acquired chicken company Moy Park in 1996. Moy Park was later sold to Marfrig Group in 2008.[10][11]

OSI acquired G W Padley Poultry and Dove Valley in 2004.[10] In 2006, OSI acquired poultry processor Amick Farms.[12] In 2009, OSI established Weihai Poultry Development Co. as a wholly owned subsidiary in China.[13]

In 2011, the company opened a Culinary Innovation Center at its headquarters in Aurora, Illinois.[14] In 2013, OSI established DaOSI in collaboration with Doyoo Group.[15]

In July 2014, a factory of OSI Group in Shanghai, China was ordered to shut down production at that location by local government for allegedly selling expired meat to international fast food chains including McDonald's and KFC.[16] In February 2016, following the return of an unfavorable verdict in the case against the company in the Jiading District People's Court in Shanghai, OSI said in a statement that "the court of jurisdiction has reached an unjust verdict" claiming that "general media clearly influenced the verdict."[17]

In 2016, OSI acquired the former Tyson Foods plant in Chicago for $7.4 million.[18] OSI also acquired a controlling stake in the Dutch company Baho Food in August 2016.[19] That December, OSI acquired Flagship Europe from the Flagship Food Group.[20]

Recognition[edit]

OSI Group facilities have received awards over the years, including awards for management of health and safety risks as well as environmental management.[21] [22] [23]

In 2011, Forbes listed it as America's 136th largest private company, based on annual revenues of $3 billion.[24]

In 2016, OSI was #58 on the Forbes list of largest private companies, at $6.1 billion.[1] OSI was awarded the Globe of Honour by the British Safety Council in 2016.[25] In 2018, the BSC recognized OSI at the International Safety Awards with an award of merit.[26]

Operations[edit]

OSI operates its U.S. plants under the name OSI Industries, LLC. The U.S. plants are located in Chicago, Geneva and West Chicago in Illinois, as well as Oakland, Iowa, West Jordan, Utah, Fort Atkinson, Wisconsin, and Riverside, California. The company produces many private label brand foods and co-packs major brand name items for its various Foodservice and Retail customers. OSI Group has more than 65 facilities in 17 countries around the world, located in North America, Western and Eastern Europe, and the Asia-Pacific region.[27]

OSI's products include meat patties, bacon, hot dogs, pizza, fish, pork, poultry, vegetable and dough products.

OSI Group has also been a meat supplier to other western fast food chains in China, such as Subway, Starbucks, Papa John's Pizza, and Pizza Hut (July 2014).[28]

See also[edit]

References[edit]

  1. ^ a b "America's Largest Private Companies". Forbes. Retrieved July 22, 2016.
  2. ^ a b "OSI Group celebrates 20 years in China with two new projects". Provisioner Online.
  3. ^ a b Ray A. Goldberg, Harold F. Hogan Jr. (January 23, 2002). "OSI Group". Harvard Business School.
  4. ^ Grinding It Out: The Making of McDonald's. H. Regnery. May 1977. ISBN 0809282593.
  5. ^ "Kitchen opens at McDonald's". Chicago Tribune.
  6. ^ "Best Chicago Meat Acquires Glenmark Brand, Introduces New Product Line". March 20, 2012.
  7. ^ "GenOSI celebrates 25th anniversary". Inquirer.net.
  8. ^ "OSI set to become largest poultry producer in China". Global Meat News.
  9. ^ "OSI opens frozen vegetable plant in India". Food Business News.
  10. ^ a b "Brazilian group buys major poultry processor Moy Park". Farmers Weekly.
  11. ^ "Moy Park has had many owners in its 74-year history". Irish Times.
  12. ^ "Poultry processor Amick Farms sold to Illinois firm". WISTV.
  13. ^ "Commercial Broiler Farms of OSI Group (Weihai) Poultry Development Co., Ltd". Compassion in Food Business.
  14. ^ "Creative R&D Culture". Prepared Foods.
  15. ^ "Two New Poultry Processing Plants for OSI n China". The Poultry Site.
  16. ^ "China's food safety reputation takes another blow". CNBC. July 21, 2014. Retrieved July 22, 2014.
  17. ^ "February 1, 2016" (PDF) (Press release). OSI Group. February 1, 2016. Retrieved September 27, 2016.
  18. ^ Greg Trotter (June 27, 2016). "OSI buys former Tyson Foods plant on South Side for $7.4M".
  19. ^ Dean Best (August 9, 2016). "OSI Group to buy control of Dutch meat firm Baho Food".
  20. ^ Meat + Poultry staff (December 21, 2016). "OSI acquires UK's Flagship Europe".
  21. ^ "U.K. Honours OSI". Meatingplace. November 27, 2015.
  22. ^ "OSI Food Solutions UK awarded 2016 Globe of Honour by the British Safety Council". BNP Media. December 6, 2016.
  23. ^ "OSI Food Plant Receives California Green Business Award". GIE Media, Inc. August 4, 2016.
  24. ^ "America's Largest Private Companies". Forbes. November 16, 2011. Retrieved March 31, 2012.
  25. ^ "OSI Food Solutions UK awarded 2016 Globe of Honour by the British Safety Council". December 6, 2016.
  26. ^ "International Safety Awards" (PDF). 2018.
  27. ^ "Global Locations". OSI Group. Archived from the original on July 15, 2014. Retrieved September 26, 2016.
  28. ^ "McDonald'S & YUM Brands' China "Spoiled Meat" Supplier: Inside Privately-Held Giant OSI GROUP (PrivCo Data)". PrivCo.com. July 21, 2014. Retrieved July 22, 2014.

External links[edit]