McDonalds And OSI Group

OSI Group have become a major food supplier and a corporate goliath. They started off as a small retail food store and expanded into a wholesale food company after the war. Starting off in the early 20th century Otto immigrated to Chicago, which was then considered one of the immigration hotspots of the world. Most immigrants would get a farm and start producing. Otto instead opportunity out to make something that will last him his family for generations to come. After the first world war his expansion to a wholesale company allowed him distribute more to farther regions of Chicago. During 1950s, Kroc, who was a franchise developer in California came across the opportunity to buy McDonald’s group.

Before that he had entered into a verbal agreement with Otto and Sons. According to this agreement, they will distribute ground beef to Autos stores nationwide. After auto bought the McDonald’s group, it was speedily becoming a force to be reckoned with on a national scale. Without any major corporate agreement Otto and Sons became a distributor for one of the fastest-growing food processing corporations in America. In the early 70’s the opportunity to reduce cost of food production while increasing the meat quality came about. Now OSI Group could freeze food and produce them at cheaper rates. They created the installed a food plant specifically aimed at producing meat for McDonald’s restaurants nationwide displacing other low rate meat distributors.

This solidified their position as one of McDonald’s major meat distributors. A decade after this OSI Industries started looking globally in continents like Asia Europe and South America. Lavin, a former banker became the managing director of the company with the specific goal of overseeing its expansion to other parts of the world. Currently, OSI Group is one of the largest food producers in the world majorly due to mergers and joint Ventures. They have currently made about 6.1 billion dollars in sales and don’t look like stopping anytime soon. 1987 marked the start of OSI Group presence in the Asian region, after a joint venture with K&K foods in Taiwan. Subsequent Ventures with Jen West in the Philippines and a Chinese food organization cemented their position in the Asian region. Click here.

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