OSI Industries: History and Growth

With over twenty thousand employees and its presence in seventeen countries, OSI Industries has set its mark as a global food provider. The company has seen itself rise from a humble background to having sixty-five facilities in the seventeen countries it is in.

The firm’s roots have been traced to the American immigrant experience. Otto Kolschowsky became a member of the growing German-immigrant population, a community that made up a quarter of the total population at the turn of the 20th century. He then managed to establish a small retail market and a butcher so as to serve the society he was in. His ventures did well and went to the wholesale aspect of the business. This all happened towards the end of the first world war. In just under a decade the business was rebranded as Otto & Sons in 1928.

The postwar economic boom that led to the emergence of modern suburbs facilitated a business alliance that was to be of key importance to both parties. Ray Kroco entered into an agreement with the sons of Otto to be McDonald’s restraint first supplier of fresh beef after the restraint opened its first restaurant in Des Plaines, Illinois. Ray was Richard and Maurice’s franchise agent at the time, a couple that had opened a family restaurant in 1940. The agreement was made before McDonald’s was opened and the two sons involved were Arthur and Harry. In a few years to come, McDonald’s was later stewarded by Kroc as its CEO and Otto & Sons symbiotically joined the blueprint established by Kroc for the modern franchise. Due to the ever-increasing McDonald’s restaurants, Otto & Sons made their supplies to the restaurants their primary goal.

The family-owned venture then evolved to be a worldwide known brand recognized as OSI Industries. Since McDonald’s need s consistent, affordable product that was consumer-driven which could be transported for long distances, the technological breakthrough of using frozen liquid nitrogen provided an opportunity for expansion and cost reduction.

Due to the two firm’s historic ties, OSI Industries became one of McDonald’s major suppliers and this resulted in the OSI building its first plant entirely for McDonald’s product line in 1973. The name OSI industries was adopted in 1975. During the same time, Sheldon Lavin became a partner for the firm after being its investment consultant. He later became its CEO in the 1980s.OSI Industries then grew by joint venture and expansion to different countries. K & K foods in Taiwan led to venture into OSI Asia- Pacific while China’s entry into world trade organization opened a huge market for OSI Industries. This trend of evolving growth has been the trend for the organization to date with advancements in technology and innovation.

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