OSI Group explained

OSI Group
Type:	Private
Industry:	meat processing
Foundation:	Chicago, United States
Founder:	Otto Kolschowsky
Location City:	Aurora, Illinois
Location Country:	United States
Key People:	Steve Lavin, CEO
Products:	Food
Num Employees:	20,000 (2016)

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. Sheldon Lavin was the owner, CEO and chairman until his death in May 2023.^[1]

History

Early history

In 1909, German immigrant Otto Kolschowsky opened a family meat market in Oak Park, Illinois 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.^[2] Harold and Jerry Kolschowsky, along with Sheldon Lavin, were influential in expanding the company to what it is today.

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.^{[3] [4]} 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.^[2]

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.^[5]

Expansion

Since 1990, OSI has made the following acquisitions and expansions:

• In 1990, it partnered with General Milling Corporation and Alaska Milk Corporation to establish GenOSI, a Philippines-based food processing company.^[6]
• In 1995, it entered the India market with the creation of its subsidiary, Vista Processed Foods.^[7]
• In 1996, it acquired chicken company Moy Park, which was later sold to Marfrig Group in 2008.^{[8] [9]}
• In 2002, it established OSI China in Beijing.^{[10] [11]}
• In 2004, it acquired G W Padley Poultry and Dove Valley.^[8]
• In 2006, it acquired poultry processor Amick Farms.^[12]
• In 2009, it established Weihai Poultry Development Co. as a wholly owned subsidiary in China.^[13]
• In 2011, it opened a Culinary Innovation Center at its headquarters in Aurora, Illinois.^[14]
• In 2013, it established DaOSI in collaboration with Doyoo Group.^[15]
• In 2016, it acquired a former Tyson Foods plant in Chicago for $7.4 million.^[16]
• In August 2016, it acquired a controlling stake in the Dutch company Baho Food.^[17]
• In December 2016, it acquired Flagship Europe from the Flagship Food Group.^[18] In 2018, Flagship Europe was renamed Creative Foods Europe.^[19]
• In 2018, the merger of Turi Foods and OSI International Foods (Australia) created Turosi Pty Ltd.^[20]
• In 2019, it acquired Chicago area meat company Rose Packing Company for an undisclosed amount.^[21]

In 2011, Forbes listed OSI as America's 136th largest private company, based on annual revenues of $3 billion.^[22] In 2016, it was #58 on the Forbes list of largest private companies, at $6.1 billion.^[23] The company's rank slipped slightly to #63 on the Forbes list in 2018.^[24] For 2019, its rank came in at #66.^[25] Refrigerated & Frozen Foods magazine listed OSI Group as the sixth largest Meat/Poultry/Seafood processor in its Top 150 Frozen Foods Processors Report in March 2019.^[26]

Operations

OSI Group operates its U.S. plants under the name OSI Industries, LLC. The U.S. plants are located in Chicago (Racine and Ashland facilities), 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 food service 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, pork, poultry, fish, pizza, vegetable and dough products.

It 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]

Impossible Foods announced a co-manufacturing collaboration with OSI to produce the Impossible Burger in July 2019, providing IF with capacity to quadruple its production by the end of 2019.^{[29] [30]}

Recognition and controversy

OSI Group facilities have received awards over the years, including awards for management of health and safety risks as well as environmental management.^{[31] [32] [33] [34] [35] [36]} Whole Foods Market presented OSI with an award for Outstanding Innovation at the company's annual Supplier Awards ceremony in April 2019.^[37]

In July 2014, a factory of OSI Group in Shanghai, China was ordered to shut down production by local government for selling expired meat to international fast food chains including McDonald's and KFC.^[38] 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" and claimed that "general media clearly influenced the verdict."^[39]

See also

• Food safety incidents in China
• Impact of the 2019–20 coronavirus pandemic on the meat industry in the United States

External links

• • PrivCo Private Company Financial Report: OSI Group LLC

Notes and References

1. Web site: Forbes profile: Sheldon Lavin . Forbes . 8 November 2020.
2. OSI Group. Ray A. Goldberg, Harold F. Hogan Jr.. January 23, 2002. Harvard Business School.
3. Book: Grinding It Out: The Making of McDonald's. May 1977. H. Regnery. 0809282593. registration.
4. News: Kitchen opens at McDonald's. Chicago Tribune.
5. News: Best Chicago Meat Acquires Glenmark Brand, Introduces New Product Line. March 20, 2012.
6. News: GenOSI celebrates 25th anniversary. Inquirer.net.
7. Web site: OSI opens frozen vegetable plant in India. Food Business News.
8. Web site: Brazilian group buys major poultry processor Moy Park. June 23, 2008. Farmers Weekly.
9. News: Moy Park has had many owners in its 74-year history. Irish Times.
10. Web site: OSI Group celebrates 20 years in China with two new projects. Provisioner Online.
11. Web site: OSI set to become largest poultry producer in China. October 9, 2012 . Global Meat News.
12. Web site: Poultry processor Amick Farms sold to Illinois firm. October 13, 2006 . WISTV.
13. Web site: Commercial Broiler Farms of OSI Group (Weihai) Poultry Development Co., Ltd.. Compassion in Food Business.
14. Web site: Creative R&D Culture. Prepared Foods.
15. Web site: Two New Poultry Processing Plants for OSI n China. The Poultry Site.
16. Web site: OSI buys former Tyson Foods plant on South Side for $7.4M. Greg Trotter. . June 27, 2016.
17. Web site: OSI Group to buy control of Dutch meat firm Baho Food. Dean Best. August 9, 2016.
18. Web site: OSI acquires UK's Flagship Europe. Meat + Poultry staff. December 21, 2016.
19. Web site: Flagship Europe becomes Creative Foods Europe. Lisa Jenkins. February 7, 2018.
20. Web site: Australian food, bev industry records $600m. Remedios Lucio. September 27, 2018.
21. Web site: OSI Acquires Rose Packing Company. Meat + Poultry staff. April 9, 2019.
22. News: America's Largest Private Companies. https://web.archive.org/web/20111120052610/http://www.forbes.com/lists/2011/21/private-companies-11_OSI-Group_NJIW.html. dead. November 20, 2011. Forbes. March 31, 2012. November 16, 2011.
23. News: America's Largest Private Companies. Forbes. July 22, 2016.
24. Web site: America's Largest Private Companies. Forbes. March 20, 2019.
25. Web site: America's Largest Private Companies. Forbes. August 27, 2020.
26. Web site: Top 150 Frozen Foods Processors Report. ForbesBNP Media II LLC. April 30, 2019.
27. Web site: Global Locations. OSI Group. September 26, 2016. dead. https://web.archive.org/web/20140715201739/http://www.osigroup.com/global_locations.asp. July 15, 2014. mdy-all.
28. Web site: McDonald'S & YUM Brands' China "Spoiled Meat" Supplier: Inside Privately-Held Giant OSI GROUP (PrivCo Data). PrivCo.com. July 21, 2014 . July 22, 2014.
29. Web site: Impossible can't make its meatless food fast enough. Now it's partnering with a company that makes meat . CNN.com. July 31, 2019 . August 1, 2019.
30. Web site: Impossible Foods, others, use partners to expand . Associated Press. July 31, 2019 . August 1, 2019.
31. News: U.K. Honours OSI. Meatingplace. November 27, 2015.
32. News: OSI Food Solutions UK awarded 2016 Globe of Honour by the British Safety Council. BNP Media. December 6, 2016.
33. News: OSI Food Plant Receives California Green Business Award. GIE Media, Inc.. August 4, 2016.
34. Web site: OSI Food Solutions UK awarded 2016 Globe of Honour by the British Safety Council. December 6, 2016.
35. Web site: International Safety Awards. 2018.
36. Web site: Globe of Honour Winners 2018.
37. Web site: OSI earns Outstanding Innovation Award from Whole Foods Market. BNP Media II LLC. April 30, 2019.
38. Web site: China's food safety reputation takes another blow. CNBC. July 21, 2014 . July 22, 2014.
39. February 1, 2016.. OSI Group. February 1, 2016. September 27, 2016.