Category Archives: Food Industry

The OSI Industries- The Trendsetter In Meat Industry

The OSI Industries is a subordinate of the OSI Group. In the year 1909, it began its operations as a retail meat business in Oak Park, Illinois. At that time it was a family business headed by a German immigrant called Otto Kolschowsky. Later on, it grew to become a large-scale enterprise and moved its operations to Maywood, Chicago. In the year 1928, it became known as Otto and Sons. It was well known for selling meat that was fresh and of high quality. In turn, it earned an excellent reputation in meat industry.

Agreement with the McDonald Business

Arthur and Harry, Otto Kolschowsky sons, entered into a business deal with Ray Kroc. The aim of the handshake agreement was for Otto and Sons to be supplying Ray Kroc’s restaurant with fresh meat products. The restaurant, which was a McDonald franchise, started operating in the year 1955. After some years Ray Kroc bought the McDonald business from its founders, Maurice, and Richard McDonalds. He then became the Chief Executive Officer of the McDonald’s company. In the year 1973 Otto and Sons built a state of the art plant in West Chicago. The role of the facility was to supply the McDonalds with the required products. The business continued to expand its operations, and in 1975 it rebranded to become OSI Industries.

Products and Services

The OSI Industries has its plants in the United States. They have their locations in Geneva, Chicago, Oakland, Iowa, Utah, Fort Atkinson and Riverside, California. Also, other plants are in West Jordan, West Chicago, and Wisconsin. The products are beef, poultry, pork, poultry, sausages, pizza, and seafood. They also sell vegetables, fruits, dough, and other products with cheese. The business also does co-packaging which entails labeling of prices on the products and unique packaging, among other services.

More Information

OSI Industries has its main offices located in Aurora, Illinois. Mr. Sheldon Lavin is the Chief Executive Officer of the private company. He took over when the sons of Otto Kolschowsky retired. The OSI Industries’ products and services serve both the retail market and the food processing trades in the United States.

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The OSI Group and McDonalds: The Franchising Duo

OSI Group was the first family meat market established in a German-immigrant community in Chicago, Illinois. Starting in 1909, they went through many changes to become one of the largest food providers in the world. The founder, Kolschowsky began as a small meat market and butcher shop, built it to a family wholesale business – rebranded as Otto & Sons – in 1928, and then finally met their fated business alliance that would expand everything. The OSI Group McDonalds dynamic duo was the magical combo that helped this small meat shop grow into 20,000 employees at 65 facilities in 17 countries.

The OSI Group McDonalds duo was made possible even before Ray Kroc opened his first McDonald’s restaurant in Des Plaines, Illinois in 1955. Prior to opening, Kroc had partnered with the sons of Otto Kolschowsky, Arthur and Harry, to establish its first fresh ground beef supplier for the planned franchising dream. This relationship proved the test of time and helped each other bring the duo into franchising history. View OSI Group McDonalds profile at Linkedin

Over two decades, the OSI Group McDonalds duo transformed from a regional supplier to a global corporation. The more customers the duo managed to reach, the more pressure there was to find new technology and more facilities it would take to keep up the supply demand. In the late 1960s came the discovery of flash freezing which improved product expansion and a reduction in cost. This historic bond maintained over time; OSI Group is now one of four core food supplies for the McDonalds franchise. With the new advancements and the OSI Group McDonalds bond, Otto & Sons evolved into OSI Industries in 1975. With the further expansion to the international sectors, the sons of Otto & Sons began to retire and pass the torch to Sheldon Lavin in 1975. Lavin was no stranger; he served as their investment consultant and aided in their capitalization efforts since 1970. He later becomes chairman and CEO in the early 1980s, bringing much investing and executive banking experience with him.

Growth after that point seemed like second nature for them. After expanding to Utah, Germany, and Spain, OSI Group became a multinational corporation. Now OSI Industries is one of the world’s most vital food providers built on expansions in Brazil, Austria, Mexico, Poland, Hungary, and the Pacific Rim. Both sides seemed to have benefited from the OSI Group McDonalds partnership and will forever go down in franchising history.

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OSI Industry Journey To Success In The Last Century

OSI Industries is currently one of the largest food providers in the world. The company has 65 facilities distributed across 17 countries. It has over 20,000 employees whose hard work has enabled millions of people to enjoy their services.

Otto Kolschowsky founded the company in 1909 under the name Otto and sons. The company has withstood many changes over the years including the Second World War. Kolschowsky sons, Arthur and Harry, entered into a handshake agreement with Ray Kroc who opened the first McDonald restaurant in 1955. The deal was to allow the Kolschowsky brothers to supply fresh-grounded beef.

Over the years, various factors have contributed to the growth of OSI Industries. In the 60s, a breakthrough in technology helped the OSI and other food suppliers expand their operations. Technology helped the suppliers to transport their products over a long distance by using liquid nitrogen to free the products.

OSI Industries become the international enterprise it is now due to contributions by Sheldon Lavin. Lavin has worked to bring various developments to the company including expanding to global markets in Japan, German, Australia and other. Lavin sustainability concept and the introduction of numerous technological innovations to the company has made tremendous growth to OSI Industries.

In 2016, the company was ranked #58 on Forbes list of largest private companies with a sales worth of $6.1 billion. The company has acquired various companies to help expand its operations and cater to their customers need. In July 2018, one of its subsidiaries in Australia merged with Turi Foods to create one enterprise.

Different subsidiaries of the company have been given various tributes for their great contributions to the societies. These OSI subsidiaries include GenOSI based in the Philippine was recognized for their efforts to train animal welfare officers. K&K Foods based in Taiwan were recognized for developing an innovative system that recycles and repurpose wastewater. Lastly, Vista Processed Foods was recognized for two initiatives, one for water conservation and the other one on providing education to farmers regarding the handling of chemicals and pesticides.

OSI Industries has been awarded the McDonald’s Best of Sustainable Supply Award, California Green Business Award, and the Global Award was given to OSI in the UK. This company is expected to gain even ore growth. This is because it has an incredible financial background that has been brought about by great management and leadership by Sheldon and McDonald.

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