The European meat market has long been dominated by a few large enterprises. Breaking into the European market isn’t easy, complex trade routes, language barriers, product variations, and other major obstacles stand in the way of many companies from Asia, America, and South America from entering the European market. One company that has been making headway is OSI Industries based in Illinois. Instead of trying to go over to Europe and create trade routes and deal with the complexities of negotiations with governments and officials, OSI has purchased its way into key areas of European markets through two major acquisitions.
Baho Foods is a Dutch company that specializes in Deli meats and Gyro products. One of the largest suppliers in their niche in Germany and the Netherlands, Baho Foods was a prime candidate for OSI Industries to overtake. Last year that acquisition happened. Now OSI owns Baho Foods. Baho Foods, of course, fits directly into the already established brand of OSI. Both of them provide supplies for the food service industry, and both of them have aggressive tactics when it comes to expansion. This acquisition remains a key purchase for OSI Food Industries.
With Baho servicing two major meat consuming markets, this deal will see OSI move ahead with its plans to service the entire worlds food service industry. An established network in the Netherlands and a near dominance of German markets puts OSI in a very powerful position in Europe.
The other acquisition was Flagship Europe. Flagship had a stranglehold on the British market for frozen poultries, pies, fillings, and sandwich fillings. These particular brands of products are important to acquire, not only because they serve to bolster trade networks, they are also great supplementary products to provide to the food services industry. Flagship Europe changed their name to Creative Foods post-acquisition but still remain a powerful presence in the United Kingdom and surrounding areas.
OSI Industries is showing the meat industry that breaking into foreign markets can be as simple as making the right key purchases. These two moves are a wonderful play of chess for OSI Industries because they happen to not only service areas that OSI needed to strengthen trade routes with. Baho and Flagship also happen to provide filler products to OSI’s powerful meat arsenal. What does the future hold for OSI in Europe? It’s too early to say for sure. If they keep making key acquisitions OSI may just overtake a large chunk of the European market from competitors.
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