OSI Balancing Expanding Domestically with Foreign Expansion

For a small Ohio based company, expanding across seas can be difficult. It’s even harder to make that expansion and still retain a watchful eye on your domestic line of products. One meat packaging company serves as a great example of how that’s not only possible but can drive success. OSI Industries has made a name for themselves as a colossus in the food services industry. With humble beginnings, OSI now is a Top 100 Food Company and has an incredible line of products and factories. To achieve their goal of domination in the industry, OSI Industries had to make calculated moves about how to go about expanding.

One major problem with expansion is language barriers. Beyond the language, you have issues of ordinance, trade, and cultural differences that can make establishing a brand difficult, much less a trusted brand. When you open branches in other countries you also don’t have the connection to local farmers and slaughterhouses like you do on your home turf. OSI Industries used logical acquisitions to fill these gaps.

One example is OSIs acquisition of Hynek. OSI Industries purchased the German-based meat provider in 2016. The company is a long-standing brand in Germany. Hynek is also in the unique position of having ties to many local farmers and slaughterhouses in rural German areas. These sources are invaluable to a meat packaging company. Retaining all of the staff and leadership positions at Hynek while absorbing their connections, product line, and brand identity was a great way for OSI to breach into Germany in a smart unobtrusive way.

Another example of an acquisition that helped OSI Industries establish itself across the waters was the purchase of Baho Foods. Baho Foods is a Dutch company with strong ties to the Netherlands and Germany. With a line of deli meats and snacks, Baho Foods offered a unique range of products to supplement OSIs primary meat exportation business. Also, Baho Foods happens to be a widely recognized name in the Netherlands with a couple of factories on Dutch soil to boot. This gave OSI the ability to expand into the Netherlands without the integration stage.

OSI is showing the world how to branch into other countries using tactical purchases. Baho Foods and Hynek serve as two of many examples that OSI has had over the years. OSI may be based in Ohio, but their products are sold and consumed across the globe.

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