A Long and Faithful Partnership: OSI Group and McDonald’s Global Pursuit

OSI Food Solutions has stood the test of time having more than a century of doing business. However, this company’s real success is its long-standing partnership with McDonald’s. OSI Food Solutions started out as a business run by a father and his two sons. Their success within their surrounding community caught the attention of Ray Kroc. Ray Kroc was the soon to be franchise owner of McDonald’s in Des Plaines, Illinois. Before the operation of this McDonald’s location, Ray Kroc sought out suppliers for their ground beef. Since OSI started to expand their business in the wholesale industry around the Chicago area, it made them a match for McDonald’s and their endeavors. Ray then entered into an agreement with the sons of OSI Food Solutions where they supplied McDonald’s ground beef. This would become a long and faithful agreement producing the OSI Group McDonalds. Read this article at Wikipedia

A few years later, Ray Kroc bought out McDonald’s and began to expand the company out nationally. OSI Food Solutions, tied to their agreement, expanded as well in order to meet the growing demand. OSI eventually opened a new plant in West Chicago, Illinois where it dedicated its production to McDonald’s branches. However, by the time the West Chicago branched finished, OSI was one of four primary meat suppliers to McDonald’s. At the West Chicago branch, it used technologically advanced machinery that would flash freeze patties fast and efficiently for packaging and delivery. This technology allowed for product expansion and reduced the cost of food. Expansion also lead them to open up a new plant in West Jordan, Utah to help supply the hundreds of new McDonald’s opening nationwide.

OSI Group McDonalds would then continue to expand their business ventures globally. They began with a joint venture in Germany and Spain in 1978 and 1980, respectively. OSI’s international expansion was carefully guided by, OSI’s current CEO, Sheldon Lavin. OSI Group McDonalds, knowing their international pursuit, wanted a trustworthy leader to guide their supplier and asked Lavin to fully commit to OSI. OSI Group McDonalds international pursuits were able to efficiently grow under Sheldon Lavin’s leadership.

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David McDonald: President of OSI Group

President and COO of OSI Group David McDonald plans to continue to lead the company into the future with more factory openings and better products as time moves forward. The sustainability of the company is based on many factors, but David realizes one of the most important qualities is the consumers themselves. By understanding and taking into consideration what consumers are saying and doing, McDonald says the company continues to grow and branch out.

McDonald has an Animal Science degree which he earned from Iowa State University. He was Project Manager of OSI Industries before moving up, as well as being the chairman of North American Meat Institute, Independent Director at Marfrig Global Foods S.A, and is a member of the OSI Group’s Board of Directors.

With an eye for business and an ear to the people, McDonald says he will continue listening to the customers about what they like and want, to keep them in mind when creating new products. He believes that they are the greatest asset to employ when making business decisions.

David McDonald doesn’t run a small group either, the OSI Group has branched out into a global leader in the industry. They are planning to extend and expand their roots in China, Europe, Germany and the Netherlands. Already having worked in China for over 20 years, McDonald believes that it is time to grow the business on a much larger scale there. The company has done very well over the last 20 years. Mcdonald is confident that branching out through other countries will be the company’s next big venture, and is already in the works of said venture.

As part of the expansion process, recently, the OSI Group bought Tyson Foods facility in Chicago and Baho Food located in Europe, saying of it, “The company’s portfolio of products and brands complements OSI’s current processing strengths while broadening our capabilities to best serve the evolving needs of our customers”, in hopes of expanding their reach in Europe, Germany, and the Netherlands. Baho Food Managing Director, John Balvers has already expressed his pleasure at being acquired by the larger, prestigious Group. Balvers stated that he and his team were excited and ready to work with the OSI Group, saying “With our combined strengths we will be even better able to support our customers in realizing their strategy and offer them a broader product portfolio.”

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