OSI Food Solutions needs more shipping capability. Not because OSI doesn’t already have an abundance of trade, they do. You don’t get to the point where you service almost every major food service company on the planet without having an established trade route. Subway, Pizza Hut, and Papa Johns are all names of companies that use OSI for food products. With that many major food service businesses to keep up with, OSI never has enough production, trade, or list of products.
What do you do when you are a major company that needs more products, more production, and more shipping capabilities? You acquire other companies. In the case of OSI Food Solutions, those companies happen to be Baho Foods and Flagship Europe. Choosing to acquire Flagship and Baho is a brilliant move by OSI. Both of them are already established in their respective countries, both have an abundance of products, and most of all both are already recognized and trusted brands.
Baho Foods is responsible for a large percentage of deli meats in Germany and the Netherlands. The Dutch-based company has an expansive line of products. The most important product to OSI may be their established factories in the Netherlands, a country that is difficult to establish yourself in. Establishing itself in the Netherlands will set OSI apart from the competition and fill a vacuum in the food service industry that needed to be filled.
Flagship Europe on the other hand — which has now changed its name to Creative Foods post-acquisition — is in the United Kingdom. The U.K. already has a strong OSI presence. What OSI Food Solutions didn’t have, though, is filler products to offer to the food services industry. Creative Foods now gives OSI pie fillings, frozen poultry, sandwich fillings, condiments, and jams. All of those aren’t going to be main services that OSI offers, but they will help fill the holes in inventory that food service businesses may be going outside OSI to purchase.
OSI has shown how a massive company can quickly grow their industry via acquisition. It’s important, however, for those acquisitions to be smart ones. Baho and Flagship are, without a doubt, smart acquisitions. At this rate, OSI Food Solutions is looking to take over most of the food service industry business. And that is a valuable service to have.
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