OSI Group has its eye set on becoming the leading food manufacturing and distribution company in the world. It is, therefore, no surprise that the company management would start by taking over some of the most established markets in the world, such as Europe. In the last two decades, OSI group has made more investments in Europe than in any other continent.
Some of the most significant include the acquisition and renaming of Creative Foods UK, Dutch-based Baho Foods, and the acquisition and expansion of Spain’s Toledo poultry processing plant. But what are some of the factors influencing this bullish investment and expansion in the market?
1. Need to meet current demand
After hitting the ground in Europe, OSI Group first concentrated on making strategic partnerships and alliances with different food retailers and consumers. This would see the company products gain popularity with major retailing brands as well as the leading food can restaurants.
With the aggressive marketing campaign paying off, the company had explored additional methods of meeting the spiking demand for its products. Their first move would be acquiring leading brands like Baho and Creative foods before expanding their processing capacity.
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2. Adjustments to changing industry trends and forecasts
Consumer trends indicate that meat intake in Europe is on an upward trajectory and is expected to hold steady moving into the foreseeable future. Poultry products are leading this pack as their consumption increased by more than five percent every year during this time.
OSI Group used these trends and industry forecast in planning and executing their recent and most impactful processing plant expansion in the region yet. The meat processor spent over $20 million expanding their newly acquired poultry plant in Toledo, Spain to ensure that it can process over 24,000 tons of poultry products annually.
3. Pushing its vision forwards
Industry forecasts, trends, and increased demand apart, the Sheldon Lavin led meat company has a goal to achieve, dominating the food industry scene. In this respect, OSI food has been aggressively expanding their global operations through mergers, acquisitions, and the establishment of new processing plants all over the world. Starting with industry’s epicenter, Europe may, therefore, seem like the most reasonable step towards fulfilling this mission.
Find more about OSI Group: https://www.wattagnet.com/articles/27248-osi-group-buys-former-tyson-foods-plant-in-chicago