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OSI Group
OSI Group
from Wikipedia

OSI Group is an American privately owned holding company of meat processors that service the retail and food service industries with international headquarters in Aurora, Illinois. It operates over 65 facilities in 17 countries. Sheldon Lavin was the owner, CEO and chairman until his death in May 2023.[2]

Key Information

History

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Early history

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In 1909, German immigrant Otto Kolschowsky opened a family meat market in Oak Park, Illinois[3] two years after his arrival in the United States. In 1917, he expanded into the wholesale meat trade and relocated the business to nearby Maywood, another Chicago suburb. The company became known as Otto & Sons in 1928. Over several decades, Otto & Sons established a local reputation for offering quality meats.[4] Harold and Jerry Kolschowsky, along with Sheldon Lavin, were influential in expanding the company to what it is today.

In 1955, Ray Kroc opened the first McDonald's restaurant in Des Plaines, Illinois with Otto & Sons as the supplier of fresh ground beef patties.[5][6] When cryogenic food processing, a method of preserving fresh food through liquid nitrogen freezing, emerged in the late 1960s, Otto & Sons accepted Kroc's offer to become one of McDonald's four meat suppliers. Later, a fifth supplier was added.[4]

In 1973, Otto & Sons opened its first high-volume meat plant in West Chicago with specially developed patty-forming machines and liquid nitrogen freezing tunnels. At the same time, it formed a separate unit called Glenmark, for all non-McDonald's business. In 1975, the company changed its name to OSI Industries. Glenmark was later acquired by Best Chicago Meat Co. in 2011.[7]

Expansion

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Since 1990, OSI has made the following acquisitions and expansions:

  • In 1990, it partnered with General Milling Corporation and Alaska Milk Corporation to establish GenOSI, a Philippines-based food processing company.[8]
  • In 1995, it entered the India market with the creation of its subsidiary, Vista Processed Foods.[9]
  • In 1996, it acquired chicken company Moy Park, which was later sold to Marfrig Group in 2008.[10][11]
  • In 2002, it established OSI China in Beijing.[3][12]
  • In 2004, it acquired G W Padley Poultry and Dove Valley.[10]
  • In 2006, it acquired poultry processor Amick Farms.[13]
  • In 2009, it established Weihai Poultry Development Co. as a wholly owned subsidiary in China.[14]
  • In 2011, it opened a Culinary Innovation Center at its headquarters in Aurora, Illinois.[15]
  • In 2013, it established DaOSI in collaboration with Doyoo Group.[16]
  • In 2016, it acquired a former Tyson Foods plant in Chicago for $7.4 million.[17]
  • In August 2016, it acquired a controlling stake in the Dutch company Baho Food.[18]
  • In December 2016, it acquired Flagship Europe from the Flagship Food Group.[19] In 2018, Flagship Europe was renamed Creative Foods Europe.[20]
  • In 2018, the merger of Turi Foods and OSI International Foods (Australia) created Turosi Pty Ltd.[21]
  • In 2019, it acquired Chicago area meat company Rose Packing Company for an undisclosed amount.[22]

In 2011, Forbes listed OSI as America's 136th largest private company, based on annual revenues of $3 billion.[23] In 2016, it was #58 on the Forbes list of largest private companies, at $6.1 billion.[1] The company's rank slipped slightly to #63 on the Forbes list in 2018.[24] For 2019, its rank came in at #66.[25] Refrigerated & Frozen Foods magazine listed OSI Group as the sixth largest Meat/Poultry/Seafood processor in its Top 150 Frozen Foods Processors Report in March 2019.[26]

Operations

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OSI Group operates its U.S. plants under the name OSI Industries, LLC. The U.S. plants are located in Chicago (Racine and Ashland facilities), Geneva and West Chicago in Illinois, as well as Oakland, Iowa, West Jordan, Utah, Fort Atkinson, Wisconsin, and Riverside, California. The company produces many private-label brand foods and co-packs major brand name items for its various food service and retail customers. OSI Group has more than 65 facilities in 17 countries around the world, located in North America, Western and Eastern Europe, and the Asia-Pacific region.[27]

OSI's products include meat patties, bacon, hot dogs, pork, poultry, fish, pizza, vegetable and dough products.

It has also been a meat supplier to other western fast food chains in China, such as Subway, Starbucks, Papa John's Pizza, and Pizza Hut (July 2014).[28]

Impossible Foods announced a co-manufacturing collaboration with OSI to produce the Impossible Burger in July 2019, providing IF with capacity to quadruple its production by the end of 2019.[29][30]

Recognition and controversy

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OSI Group facilities have received awards over the years, including awards for management of health and safety risks as well as environmental management.[31][32][33][34][35][36] Whole Foods Market presented OSI with an award for Outstanding Innovation at the company's annual Supplier Awards ceremony in April 2019.[37]

In July 2014, a factory of OSI Group in Shanghai, China was ordered to shut down production by local government for selling expired meat to international fast food chains including McDonald's and KFC.[38] In February 2016, following the return of an unfavorable verdict in the case against the company in the Jiading District People's Court in Shanghai, OSI said in a statement that "the court of jurisdiction has reached an unjust verdict" and claimed that "general media clearly influenced the verdict."[39]

See also

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
OSI Group, LLC is a privately held American multinational corporation and leading global supplier of custom protein-based food products to the retail and foodservice industries, with headquarters in . Founded in 1909 as Otto & Sons, a family-owned in by German immigrant Kolschowsky, the company pioneered fresh ground beef supply to franchises starting in 1955 and rebranded as OSI Industries in 1975 amid international expansion. Operating over 65 facilities across 18 countries with approximately 20,000 employees, OSI delivers concept-to-table solutions encompassing sourcing, product development, processing, and distribution, generating annual revenues around $7 billion. Its defining partnership with has driven growth into poultry, seafood, and plant-based proteins, while commitments to and underscore operations, though a 2014 scandal involving expired meat sales by its Chinese subsidiary drew regulatory fines exceeding $3.6 million and client suspensions in that market.

History

Founding and Early Development (1909–1950s)

OSI Group traces its origins to 1909, when German immigrant Kolschowsky established a family-owned meat market and butcher shop in , initially operating under the name Otto & Sons. Kolschowsky had arrived two years earlier, leveraging his butchery skills to serve local retail customers in the Chicago suburbs. In 1917, the business expanded by relocating to Chicago's , where it incorporated wholesale meat distribution alongside its retail operations. Kolschowsky's sons, Harry and , joined the enterprise around this period, contributing to its operational growth as a family-run concern. By 1928, the company formalized its branding as Otto & Sons, solidifying its position as a stable local meat supplier amid the competitive market. Through the and , & Sons developed into a wholesale meatpacking operation, focusing on fresh beef and other proteins for regional distribution while maintaining family ownership and control. The business navigated economic challenges, including the and rationing, by emphasizing quality sourcing and efficient local processing, which built a reputation for reliability among Chicago-area buyers. Entering the , the company remained a mid-sized, privately held wholesaler, poised for further adaptation to postwar demand in the food sector without yet venturing into national or specialized processing scales.

McDonald's Partnership and Technological Innovations (1950s–1970s)

In 1955, selected Otto & Sons, then a Chicago-area meat processor owned by the grandsons of founder Otto Kolschowsky, as the initial supplier of fresh ground beef patties for his first restaurant in . This partnership marked a turning point, as Otto & Sons' reputation for high-quality local meat aligned with Kroc's emphasis on consistent product standards amid early efforts. As rapidly expanded nationwide in the , logistical challenges with fresh beef—such as spoilage risks and supply inconsistencies—necessitated a shift to frozen patties to ensure uniformity and enable broader distribution. In the late , Otto & Sons adopted cryogenic flash-freezing technology, which rapidly froze patties using to preserve texture, juiciness, and flavor while minimizing formation that could degrade meat quality. This innovation, aligned with emerging food processing advancements, positioned the company as one of key suppliers, supporting the chain's growth from regional to national scale. By 1973, Otto & Sons opened its first dedicated high-volume facility in , equipped with custom patty-forming machines and freezing systems tailored for specifications. These technological upgrades allowed for precise portion control, efficient production of uniform 1.6-ounce patties, and reliable frozen delivery, directly contributing to ability to standardize menu items across franchises. The company's integration of such capabilities solidified its role in the fast-food , foreshadowing further expansions.

Global Expansion and Leadership Transition (1970s–2000s)

During the late 1970s, OSI Group initiated its international expansion to support the global franchising of , establishing its first overseas facilities in in 1978, followed by operations in , , , and throughout the 1980s. This period marked a shift from a primarily U.S.-focused processor to a multinational supplier, leveraging custom processing technologies like to meet demand for consistent beef patties abroad. Leadership transitioned in the early 1980s under Sheldon Lavin, who had joined OSI in 1970 as a financial to secure funding for a new automated meat processing plant amid rapid growth. By 1981, Lavin assumed the roles of Chairman and Chief Executive Officer, guiding the company through family ownership dilution as the founding Kolschowsky brothers retired, enabling focused strategic decisions on international scaling. Under his direction, OSI entered the market in 1987 via joint ventures in and the , alongside initial operations in , which became a key growth area due to rising fast-food demand. The 1990s and early 2000s saw accelerated diversification and geographic reach, with OSI acquiring stakes in processing to broaden beyond beef, including aggressive expansions in , , and the U.S. by 2000. In 2002, the company entered China's fresh produce sector through an acquisition, complementing its meat operations and establishing a foothold in high-volume markets. By the mid-2000s, OSI operated facilities across 17 countries, employing efficiencies to serve major clients like , , and internationally, while maintaining private ownership under Lavin's control.

Operations and Business Model

Core Products and Processing Capabilities

OSI Group's core products center on value-added proteins, particularly , , and items tailored for foodservice and retail channels. These include burgers, , meatballs, and deli meats; products such as cooked links, raw or cooked patties, ribettes, ham varieties, and ; offerings like battered or breaded strips, nuggets, patties, products, and raw cuts; as well as in pre-cooked strips, bits, or chips. The portfolio extends to hot dogs and specialty sausages (, , , ethnic, or flavored varieties including and ), alongside diversified items such as , , fritters, , plant-based proteins, preparations (e.g., , or chicken, chili, soups, sauces), sandwiches, entrées, pizza, baked snacks, and select produce like , onions, peppers, and tomatoes. All products are developed custom to client specifications, emphasizing made-to-order solutions for efficiency in back-of-house preparation or direct processing lines. The company's processing capabilities encompass a spectrum from raw materials to fully prepared foods, supporting fresh, frozen, and individually quick frozen (IQF) formats. Key methods include grinding, blending, forming, , co-extrusion, trimming, slicing, portioning, and stacking to create diverse product forms. Cooking technologies feature , impingement, , heating, battering or breading, spiral cooking, hot oil frying, injection, traditional wood-burning smoking, jacketed kettle agitation, browning, , char-marking, and for precise flavor and texture control. Packaging options range from single-portion retail packs and bulk or foodservice formats to advanced techniques like modified atmosphere packaging (MAP), vertical form fill seal (VFFS), overwrap, and vacuum sealing, enabling extended and customized distribution. These capabilities are integrated across OSI's of over 65 facilities, facilitating scalable production of ready-to-cook or fully cooked items while incorporating continuous improvements and new equipment for custom process development. The focus on protein , such as patty forming machinery pioneered in partnerships with equipment providers, has enabled high-volume output for major quick-service chains since the mid-20th century. Recent expansions, including sauce- via acquisitions like Park 100 Foods in , broaden capabilities into complementary categories like condiments and ready meals.

Global Supply Network and Facilities

OSI Group operates a extensive global supply network comprising more than 65 facilities across 18 countries, supporting localized sourcing, processing, and distribution of custom food products for major foodservice and retail brands. This , which employs over 20,000 individuals, enables the company to adapt to regional market demands, regulatory requirements, and disruptions through practices focused on raw materials procurement and end-to-end logistics. The network's design emphasizes , from animal protein sourcing to value-added processing, allowing OSI to maintain control over quality and efficiency while minimizing transportation-related emissions and costs. In , OSI's operations are anchored in the United States, with headquarters in , and multiple processing plants handling , , , and for domestic and export markets. Facilities in this region leverage advanced automation and proximity to production areas to ensure fresh supply chains, contributing to the company's role as a key provider for chains like . Europe, managed from a headquarters in Gersthofen, , features facilities in countries including Austria, Hungary, the Netherlands, , , , and the , organized into three regional divisions for coordinated protein processing and distribution. These sites support EU-specific standards for and traceability, facilitating exports across the continent. Asia-Pacific operations span facilities in , , , , the , and , where OSI invests in joint ventures and localized sourcing to address diverse consumer preferences and rapid urbanization-driven demand for processed foods. In , for instance, plants in and other provinces handle high-volume and production tailored to regional tastes, bolstered by dedicated R&D centers opened in 2014. Additional presence in and extends the network into and further North American capabilities, enabling OSI to source proteins globally and distribute finished products to over 77 countries. This multinational footprint, supported by three zone offices, fosters knowledge sharing via global councils on operational best practices, enhancing against geopolitical and environmental risks.

Supply Chain Innovations and Efficiency Measures

OSI Group maintains a vertically integrated , collaborating with global partners to control production and enhance . This approach includes company-owned operations, such as poultry in established by 2013, ensuring and quality from to processing. By combining local in-market resources with strategic , OSI minimizes disruptions and optimizes sourcing for efficiency. In logistics, OSI's corporate team applies cube optimization, intermodal transport, and freight consolidation, achieving savings of 8,200 metric tons in emissions through reduced shipments as of 2014. The company operates advanced tracking and tracing systems across its network in 18 countries, preserving product quality from sourcing to delivery. Digitization efforts advanced in 2019 via a partnership with Elementum, allowing real-time, secure collaboration on inventory and shipment data with suppliers and customers to improve visibility and responsiveness. Efficiency extends to facility-level innovations, including ammonia-based systems and robotic implemented by 2015, which lower use and support precise processing while integrating with broader . measures emphasize supplier collaboration for environmental performance and adoption of low-emission , particularly in beef sourcing to address . These practices leverage OSI's global buying power and long-term vendor relationships to sustain consistent standards and cost controls.

Leadership and Corporate Governance

Key Figures: Sheldon Lavin and Family Influence

Sheldon Lavin (June 17, 1932 – May 26, 2023) served as chairman and of OSI Group from the 1970s until his death, overseeing its evolution from a regional supplier into a multinational processor with over $7 billion in annual revenue by 2022. Initially a Chicago-based financial consultant with expertise in and , Lavin entered the in the late 1960s by arranging loans for Otto & Sons, the Kolschowsky family's butcher business founded in 1909, which rebranded as OSI Industries to supply in 1973. He transitioned to a full-time role as the company expanded internationally, becoming majority owner by the late 1980s after acquiring stakes from the founding Kolschowsky brothers, Harold and Jerry, who had driven early growth through the partnership but eventually exited ownership. Lavin's strategic focus emphasized custom protein processing, technological innovation, and global facility development, establishing OSI plants in 18 countries by the 2010s to support clients like McDonald's, Burger King, and Starbucks. He maintained a private, family-oriented corporate culture despite the company's scale, with OSI remaining privately held and avoiding public disclosure of detailed ownership structures. Under his direction, OSI achieved consistent growth, processing billions of pounds of meat annually while navigating supply chain complexities, though Lavin kept personal details and succession plans opaque even in later years. Lavin family influence centers on generational ownership continuity following Sheldon's acquisition of control, with the company structured through family trusts to preserve independence. Sheldon, widowed since 2009, had three children, none initially employed in OSI's operations; however, upon his death, son Steven Lavin, a lawyer by training, assumed the chairmanship in May 2023, directing strategic oversight via family-held entities estimated to control the majority stake. Steven's role marks a shift toward formalized family governance, complemented by professional management under CEO David McDonald, a 36-year OSI veteran promoted from chief operating officer. This structure underscores the Lavins' enduring proprietary interest, distinct from the operational autonomy granted to executives, ensuring alignment with long-term value preservation in a competitive industry.

Ownership Structure and Private Status

OSI Group operates as a privately held , with no public stock listing or disclosure of detailed shareholder structures typical of publicly traded firms. Founded in as a family-owned butcher shop by Otto Kolschowsky, it evolved into Otto & Sons and later OSI Industries, maintaining private ownership throughout its history without pursuing an . This structure has enabled focused, long-term decision-making insulated from quarterly market pressures, supported by private debt financing for expansions rather than public equity. Ownership became concentrated under Sheldon Lavin, who joined as a financial in the 1970s, acquired majority control by the 1980s, and served as chairman and until his on May 26, 2023. Lavin held the vast majority stake in the company, valued at approximately $6.3 billion in revenue-generating operations at the time. Upon Sheldon Lavin's passing, control transitioned to his son, , a who assumed the roles of chairman and in 2023, with the Lavin family retaining ownership of the private entity. This familial succession underscores OSI's continued operation as a closely held business, where strategic decisions prioritize operational continuity over external investor demands, though exact equity distributions remain undisclosed due to its private status.

Achievements and Industry Impact

Awards for Quality, Safety, and Sustainability

OSI Group's facilities worldwide maintain (GFSI) certification, ensuring adherence to rigorous standards for management systems, with all sites upholding equivalent globally recognized certifications for and protocols. In , OSI achieved Gold-level LRQA accreditation in 2024, the first for an in the meat sector, validating compliance with international benchmarks for , occupational health and , and environmental management. For workplace safety, OSI Food Solutions earned International Safety Awards from the British Safety Council in 2017 and 2018, recognizing exemplary safety management practices among over 550 organizations, followed by the prestigious in 2019 for outstanding health and safety performance. On sustainability, OSI's Riverside, California facility received the California Green Business for resource conservation, pollution prevention, and operational efficiency. OSI was awarded the 2019 Sustainability and Environment Prize by the National Association of Meat Industries of (ANICE), highlighting environmental initiatives, and became the second Spanish meat company certified to the social accountability standard. In , OSI Food Solutions earned the top "Eco-responsible in " award in 2018 and first place in a 2022 national contest for promoting practices at its Ostróda facility. Additionally, OSI's global and quality leadership contributed to the 2023 BRCGS CEO for executive Sharon Birkett, emphasizing advancements in industry standards.

Contributions to Fast Food Supply Chains and Food Technology

OSI Group played a pivotal role in scaling fast food supply chains by becoming McDonald's initial ground beef supplier in 1955, enabling consistent product quality amid rapid restaurant growth. In 1973, it constructed the industry's first high-volume dedicated meat processing facility in West Chicago, Illinois, optimized for McDonald's beef patty production using advanced grinding and portioning equipment. This infrastructure supported McDonald's expansion by standardizing supply volumes, reportedly processing billions of patties annually through vertically integrated sourcing and logistics. The company's adoption of cryogenic flash-freezing in the 1960s revolutionized distribution, allowing pre-formed patties to be shipped internationally without quality degradation, which facilitated global franchising model starting in the 1970s. OSI extended similar efficiencies to processing, manufacturing chicken products including McNuggets for and other chains like , leveraging automated forming and coating lines installed as early as 1971 with pioneering equipment such as the Formax #1 machine. These capabilities ensured year-round availability and uniformity, reducing waste and enabling just-in-time delivery to thousands of outlets worldwide. In , OSI advanced processing innovations like individually quick freezing (IQF), for textured proteins, and sous-vide cooking, applied to custom formulations for menus including sauces, , and blended proteins. It established dedicated R&D , including the 2011 Culinary Innovation Center in , for sensory testing and shelf-life optimization, followed by global centers in 2014 equipped for rapid prototyping of ready-to-cook items. These facilities supported iterative development, such as adapting meat analogs for chains like via a 2019 manufacturing partnership with , which scaled plant-based patties using OSI's existing and freezing lines to meet surging demand without compromising throughput. Overall, OSI's emphasis on proprietary software and has minimized disruptions, processing over 1.5 million tons of protein annually across 65 facilities in 18 countries.

Controversies and Food Safety Challenges

2014 China Scandal: Expired Meat Allegations and Aftermath

In July 2014, an investigative report aired by 's Dragon TV exposed food safety violations at OSI Group's subsidiary, Husi Food Co., revealing undercover footage of workers repackaging expired and , altering expiration dates on , picking from the floor without sanitation, and incorporating inedible parts like heads into products destined for fast-food chains including , , and [Pizza Hut](/page/Pizza Hut). Chinese regulators immediately suspended operations at the Shanghai Husi plant on July 21, , and detained several executives, including the general manager and quality control supervisor, as part of a broader probe into systemic violations. Six OSI employees were later arrested in connection with the incident. OSI Group responded by issuing public apologies from CEO Sheldon Lavin, emphasizing as a core principle, launching an internal investigation, and voluntarily withdrawing all Shanghai Husi products from the market on July 27, 2014. The company fired implicated staff, promised management overhauls, and implemented a worker redundancy plan, resulting in the layoff of 340 employees at the facility by September 2014, amid indications of a potential full shutdown. Major clients severed ties with Shanghai Husi, with halting all procurement from the supplier, and Pizza Hut's parent suspending OSI-sourced chicken, and also cutting connections, exacerbating OSI's operational contraction in . In the ensuing legal aftermath, Shanghai authorities fined OSI's Chinese units over 23.6 million yuan (approximately $3.6 million) in October 2016 for expired meat sales and related infractions, while a court in February 2016 imposed additional fines up to 2.4 million yuan ($365,000) on two units and sentenced eight employees to prison terms ranging from one to 4.5 years for crimes. OSI's separate China office faced a 7.3 million yuan ($1.1 million) penalty. The scandal highlighted vulnerabilities in OSI's supply chain oversight in but did not result in broader global repercussions for the company, which continued operations elsewhere while scaling back in the affected market.

Regulatory Scrutiny and Other Incidents

In the United States, OSI Group and its subsidiaries have faced repeated scrutiny from the (OSHA) for workplace and health violations, accumulating penalties totaling $202,917 across 14 incidents since 2000. Notable citations include a $37,747 fine in 2023 for violations at a facility operated by OSI Group, LLC, and a $33,100 penalty in for similar lapses. These cases often involved failures to maintain safe working conditions in meat processing environments, such as inadequate or communication, reflecting ongoing regulatory pressure on the company's industrial operations. Environmental regulatory actions have also targeted OSI facilities. In 2010, OSI Industries, LLC was penalized $225,000 for an environmental violation, likely related to or emissions management at a processing plant. Earlier, in 2006, OSI Industries, Inc. received a $100,000 fine for infractions, underscoring compliance challenges with emissions standards in its operations. These penalties, tracked through government enforcement data, indicate isolated but significant lapses in environmental controls amid the company's expansion. Labor-related incidents include a $41,000 penalty in 2023 for violations by OSI Industries, LLC, and a $17,746 fine in 2009 under the Family and Medical Leave Act. Such cases highlight periodic tensions in , though they represent a small fraction of OSI's overall U.S. penalty total of $586,663 since 2000 across 18 records. No major U.S. recalls or Federal Drug Administration (FDA) enforcement actions directly implicating OSI's core products were identified in regulatory databases, distinguishing these operational issues from product integrity concerns.

Recent Developments

Expansion into Plant-Based and Sustainable Products

In 2019, OSI Group entered the plant-based protein market through a co-manufacturing partnership with , enabling production of the Impossible Burger at its facility starting in August of that year. This collaboration addressed surging consumer demand for meat alternatives, with seeking additional capacity beyond its own plants amid rapid sales growth. OSI, traditionally focused on animal proteins, positioned the deal as an extension of its expertise in protein processing to support sustainable options, stating it would "meet the demands of a growing market interested in plant-based proteins." The marked OSI's strategic diversification into alternative proteins, including vegetarian and vegan items, as noted in its European operations, which emphasize high-quality meatless alternatives for broad market implementation. This expansion aligned with OSI's broader goals, framing plant-based production as a means to advance best practices in and protein sourcing. By leveraging existing facilities, OSI avoided significant new capital outlays while contributing to reduced environmental impacts associated with farming, such as lower per unit of protein compared to . Complementing plant-based efforts, OSI has pursued sustainable product enhancements through reforms, including pilots for beef production and commitments to science-based climate targets covering Scope 3 emissions. The company's 2024 Global Sustainability Report details initiatives to minimize resource use in protein products, such as water-efficient processing and waste reduction, while prioritizing verifiable reductions in deforestation-linked sourcing. These measures apply to both traditional and alternative proteins, with OSI reporting progress in farmer income resilience and environmental metrics, though independent benchmarks note room for greater transparency on nutritional impacts.

Ongoing Operations and Market Adaptations Post-2020

Following the onset of the in early 2020, OSI Group implemented a comprehensive response plan emphasizing enhanced sanitary protocols, , and employee health screenings across its facilities to maintain operational continuity amid global disruptions. At its Rose Packing plant in , for instance, the company had already heightened safety measures prior to confirming 30 cases among workers in April 2020, enabling rapid adaptation without widespread shutdowns. These efforts supported uninterrupted supply to major clients in the foodservice sector, where demand shifted from dine-in to and delivery, necessitating agile inventory management and diversified protein sourcing. Post-pandemic, OSI addressed persistent labor shortages through targeted strategies including wage increases, performance bonuses, flexible scheduling, and increased to stabilize production amid fluctuating availability and rising dine-out trends by 2022. Operating 65 facilities across 18 countries with over 20,000 employees, the company focused on by integrating advanced incident response systems for and expanding remote video auditing to monitor compliance globally. These adaptations mitigated operational uncertainties, such as those from worker absences and raw material volatility, while sustaining output for value-added protein products serving retail and foodservice brands. In response to evolving market dynamics, OSI pursued strategic acquisitions to broaden its capabilities and geographic footprint. Notable moves included the 2023 acquisition of International Quality Foods for enhanced processing capacity, followed by the October 2024 purchase of Park 100 Foods—its largest to date—adding custom kettle-cooked manufacturing in to diversify beyond core meats. By February 2025, OSI announced plans to acquire Karnova Food Group, a UK-based protein ingredients supplier, further strengthening integration; concurrently, it divested a non-core processed foods plant in China's Province to BRF in May 2025 to optimize assets. These transactions reflect adaptations to consolidate strengths in high-demand segments while streamlining underperforming areas amid inflationary pressures and shifting consumer preferences.

References

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