The Sustainable Expansion of the OSI Group

Food production is one of the crucial factors when it to comes to healthy feeding. Surprisingly, few people are concerned about how the food they consume is produced or processed. When one goes into a hotel, he is not bothered by the methods that are used to process the food. Similarly, when many people visit supermarkets, they hardly look out for the company that produced the food. One of the companies that produce and process the that we consume is OSI Group.

OSI Group has over the years been producing foodstuffs that are sold worldwide. Headquartered in Aurora, Illinois, the company’s impact is felt far and wide. Under the leadership of Sheldon Lavin as CEO and David McDonald as its president, OSI Group has provided hundreds of jobs in the 17 countries that it operates in. After producing foods, it adds value by packaging it selling at a higher profit in different supermarkets. Since its inception, the company has continuously been expanding.

OSI has recently been aggressive in expanding to Europe. It has acquired Baho Food, a Dutch company that has subsidiaries in Netherlands and Germany. This acquisition proved to be quite effective in the penetration of the European market. Baho Food has a presence in over 18 European countries. Also, to increase its production and sales in Europe, OSI acquired Flagship Europe. By purchasing Flagship Europe, OSI took over the production of frozen pies, poultry, and condiments. The management wants to reinvent Flagship Europe so that it can enjoy the kind of success experienced by OSI in Asia and the US.

As much as the company has been expanding abroad, it has also been taking steps to cement its place here in the US. In June 2016, it acquired a food company in Illinois that was about to close. The company was previously being managed by Tyson Foods. Tyson Foods decided to close it due to the increased cost in running it. OSI acquired it in a $7.5 million deal. The closure of the company would have caused a loss of 500 jobs.

To sustain the expansion, OSI Group has been putting down procedures to increase its sales. McDonald notes that creating a relationship with the local community is essential. He says that OSI tries to target the local market by researching before settling on a venture. David McDonald has also credited diversification as another reason the company has experienced much success. The company has survived various global economic turmoil such as the great recession of the late 2000s.