OSI Industries: On How to Leverage Growth and Acqusitions

OSI Industries has been exploding in recent years. The company has a history of intelligent expansion and rapid response to needs in the food service industry. One of the main reasons for this continued expansion is the growth of the industry as a whole; another reason is the growth of the industries reliance on OSI Industries as a whole.

OSI had humble beginnings. The original name for the massive multination private entity was Otto & Sons. Unlike today, Otto & Sons was simply a local butcher and OSI Industries meat supplier in the early 1900s. It all started when Otto Kolschowsky migrated from Germany to America and opened his famous meat shop in Oak Park. Otto & Sons became a household name in Chicago and the meat shop had to expand into the wholesale side of the business to keep up with demand.

OSI Industries became, well, OSI because of the rise of McDonald’s. When Kroc opened the first McDonalds location in 1955 he entered into an agreement with the sons of Otto, Henry Kolschowsky, and Harry Kolschowsky. Otto & Sons would supply McDonald’s with beef that they used on their famous hamburgers. This relationship produced growth for both entities. Otto & Sons needed to rebrand and became OSI, while McDonald’s exploded into a multination fast food chain.

OSI leveraged this McDonald’s growth intellectually. They entered into partnerships around the globe with ventures such as K&K Foods in Taiwan, JC Comsa in China, Doyoo Group in China, and many other entities around the world. At the same time, OSI was increasing its global brand via well-timed acquisitions.

Acquisitions such as that of Baho Foods, a Dutch supplier of convenience products, and Flagship Europe, a supplier of pies, frozen poultry, and sauces in the United Kingdom. These acquisitions increased OSI Industries portfolio of products while also allowing them to expand in a non-aggressive way into territories that can be difficult to acquire.

OSI Industries leveraged the growth of McDonald’s to become a Forbes Top 100 Companies with an estimated net worth of $6.1 billion. The steady growth of OSI into one of the top players in the food industry is an example of how a company that started off humbly but used their branding, loyalty, and abilities to expand into all areas of the world. OSI now supplies the foodservice industry products ranging from pizzas, hamburgers, and pies. If you are a company in the foodservice industry and need a particular product, there is a good chance that OSI will find a way to acquire what you need.



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