OSI Group

OSI Group

Company type	Private
Industry	Meat processing
Founded	1909
Founder	Otto Kolschowsky
Headquarters	Aurora, Illinois , United States
Area served	Worldwide (17 countries)
Key people	Sheldon Lavin (owner, CEO, chairman until May 2023)
Products	Meat patties, bacon, hot dogs, pork, poultry, fish, pizza items, vegetables, dough-based goods
Number of employees	Not specified
Parent	None

OSI Group is a privately held American holding company specializing in meat processing for both retail and food service sectors, with its global headquarters located in Aurora, Illinois. The company manages more than 65 facilities spanning 17 countries. Until his passing in May 2023, Sheldon Lavin served as owner, CEO, and chairman.

Origins

The origins of the company trace back to 1909 when German immigrant Otto Kolschowsky established a family-run meat market in Oak Park, Illinois. By 1917, the business had expanded into wholesale meat distribution and moved operations to Maywood. Renamed Otto & Sons in 1928, the firm earned recognition for delivering high-quality meats. Key figures in its growth included Harold and Jerry Kolschowsky alongside Sheldon Lavin.

When Ray Kroc opened the inaugural McDonald's restaurant in Des Plaines, Illinois in 1955, Otto & Sons became the supplier of fresh ground beef patties. With the introduction of cryogenic freezing technology during the late 1960s, Otto & Sons emerged as one of McDonald’s leading meat providers.

In 1973, the company inaugurated its first large-scale meat processing plant in West Chicago, equipped with cutting-edge patty-forming machinery and liquid nitrogen freezing tunnels. To serve clients beyond McDonald’s, it created Glenmark, which was later acquired by Best Chicago Meat Co. in 2011. The enterprise rebranded itself as OSI Industries in 1975.

Growth and Development

OSI Group’s expansion since 1990 has been driven by strategic acquisitions and entry into new markets:

• In 1990, it collaborated with General Milling Corporation and Alaska Milk Corporation to form GenOSI in the Philippines.
• By 1995, OSI entered the Indian market through its subsidiary Vista Processed Foods.
• The acquisition of poultry producer Moy Park occurred in 1996 (later divested in 2008).
• OSI established its China operations with OSI China headquartered in Beijing in 2002.
• In 2004, it acquired G W Padley Poultry and Dove Valley.
• The purchase of poultry processor Amick Farms took place in 2006.
• A wholly owned subsidiary, Weihai Poultry Development Co., was founded in China in 2009.
• The Culinary Innovation Center was launched at OSI’s Aurora headquarters in 2011 to advance product development efforts.
• In 2013, OSI partnered with Doyoo Group to create DaOSI in China.
• The company acquired a former Tyson Foods facility in Chicago for $7.4 million and secured controlling interest in Dutch meat processor Baho Food during 2016; it also purchased Flagship Europe (renamed Creative Foods Europe in 2018).
• OSI merged Turi Foods with OSI International Foods Australia to form Turosi Pty Ltd in 2018, bolstering its presence within the Australian market.
• The acquisition of Chicago-based Rose Packing Company occurred in 2019.

Regarding financial achievements and industry standing, Forbes ranked OSI as the 136th largest private U.S. enterprise with $3 billion revenue in 2011; by 2016 it had climbed to #58 with $6.1 billion revenue. The company maintained strong rankings—#63 in 2018 and #66 in 2019. Additionally, Refrigerated & Frozen Foods magazine placed OSI sixth among global Meat/Poultry/Seafood processors within its 2019 Top 150 Frozen Foods Processors Report.

Through these targeted acquisitions and expansions, OSI Group has reinforced its competitive positioning and broadened its product offerings across international markets, cementing its role as a leader within the food processing sector.

Operations

OSI Group manages its American manufacturing sites through OSI Industries, LLC, with plants located in Chicago (specifically Racine and Ashland), Geneva, West Chicago, Oakland, Iowa, West Jordan, Utah, Fort Atkinson, Wisconsin, and Riverside, California. The company specializes in producing private-label food products and serves as a co-packer for prominent brand items catering to both retail and food service sectors. Globally, OSI operates more than 65 production facilities spread across 17 countries throughout North America, Europe, and the Asia-Pacific region.

The company’s range of products encompasses meat patties, bacon, hot dogs, pork, poultry, fish, pizza items, vegetables, and dough-based goods. In China, OSI is a primary meat supplier for major Western fast-food chains such as Subway, Starbucks, Papa John's Pizza, and Pizza Hut.

In July 2019, OSI announced a strategic co-manufacturing agreement with Impossible Foods to produce the Impossible Burger. This collaboration enabled Impossible Foods to increase its production output by four times before the end of the year.

Recognition and controversy

OSI Group has earned several accolades for its commitment to health and safety management as well as environmental stewardship. Among its notable honors are the British Safety Council’s Globe of Honour awarded in 2016, the California Green Business Award received in 2016, the International Safety Awards in 2018, and Whole Foods Market’s Outstanding Innovation Award in 2019.

Conversely, in July 2014, an OSI facility in Shanghai was compelled to close following revelations that it had sold expired meat products to international fast-food chains including McDonald's and KFC. In 2016, OSI challenged an adverse court ruling connected to this incident, attributing the decision partly to media influence on the legal process.

See also

• Food safety incidents in China
• Impact of the 2019–20 coronavirus pandemic on the meat industry in the United States

External links

• PrivCo Private Company Financial Report: OSI Group LLC