OSI Group and Baho Foods, A Perfect Match

With the recent acquisition of Baho Foods OSI Group has put themselves into a better position in the European market than they have ever been. The company, which will be a wholly owned subsidiary of OSI Group has itself five subsidiaries which offer a wide range of products that are a perfect complement to the current offerings of OSI. Of course, OSI is already the leader in meatpacking and prepared food processing around the business world, but that isn’t to say that there isn’t always some room for improvement and expansion of offerings in any organization.

With Baho joining the OSI family, the latter gets access to a wide range of recognized high quality brand products that are popular with food service outlets across the 18 European countries that the former operates. The subsidiaries who make these products are Vital Convenience, Gelderland Frischwaren, Bakx Foods, Henri van de Bilt, and Q Smart Life. The expert leadership team that will be in place representing OSI Group will be comprised of John Balvers, the Managing Director of Baho, and his current team of division managers. The continuity of the majority of the company’s primary management staying in place in roles congruent to their current ones is important to the success of the acquisition and the success of the combined companies in the future.

OSI Group is no stranger to expansion, in fact, they have built the entire history of the firm on the idea of never resting on one accomplishment, and always striving for growth. This is what has allowed them to evolve over their hundred plus year lifespan from a single corner butcher shop in the Oak Park neighborhood of Chicago, to being the butcher shop to the world, with operations in more than 29 countries, 65 facilities in 17 countries, and more than 20,000 direct employees and an additional 25,000-30,000 indirect workers in their own upstream supply chain. Today the company is the food industry leader in processed foods, and prepared meat products for convenience, retail, restaurant, and specialty program fast food operations.The acquisition of Baho Foods by OSI opens the door for a brighter future for both companies and a better supply chain solution for the end consumers of their products.

OSI Group relies on technology for growth

OSI Group is one of the largest food companies in the world. The company has headquarters in Illinois, but its presence has gone to many other countries. Currently, they have operations in 17 countries and have constructed over 65 food production plants. The development of this company has been impressive. For a company that started as a butcher shop with just one employee, who was also the founder, it is a huge achievement to now have over 20,000 employees. It is a change that shows how aggressive this business has been in its growth. OSI is today ranked as one of the biggest private businesses in the United States by the Forbes. It has a net worth of $6.1 billion and appears in the top 100 businesses.

One factor that contributed to the growth of OSI from a butcher shop to an internationally recognized business is its approach towards technology as a way of boosting efficiency in food production business. In the 1960s, there was a breakthrough in the technology sector when liquid nitrogen cryogenic was introduced as a means of preserving food. This invention was good news to Otto & Sons- now OSI Group. They now had better options for food production, storage, and transportation.

With their main business partner the McDonald’s opening chain restaurants in different parts of the country, preservation of food was a mandatory requirement. Otto & Sons embraced this new technology as soon as it hit the market. It even sought funding from the banks to help it expand food production business by building a food production plant that would integrate the benefits of the new technologies. Adoption of early technology and expansion of business are the reason this company transformed from a family-owned business to OSI Group company.

The transition of Otto and Sons ended up OSI owning a food production plant that was dedicated to the production of products just for the McDonald’s. OSI Group was chosen to be one of the four main suppliers to the McDonald’s. The new move applied more pressure on OSI to keep growing its food production business. McDonald’s was adding thousands of new customers every year, making it mandatory for OSI to increase food production.

It is obvious that the role of McDonald’s in the growth of OSI Group was vital. OSI also took advantage of the moment and moved up with their partners, as McDonald’s moved international, they were there also. The company now runs its business independently and has many clients in different parts of the world they no longer depend on McDonald’s for growth.

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