Founded in Wisconsin - O & H Bakery, Racine: Maker of the Kringle

Introduction

The history of O&H Danish Bakery is more than just a story of a business; it is a timeline of Danish immigration, the evolution of the iconic Kringle, and four generations of the Olesen family in Racine, Wisconsin. Over seventy-five years old growing and "Founded in Wisconsin".

The Journey of the Kringle: From Medieval Roots to Wisconsin's State Pastry

The Kringle's origins trace back to the Middle Ages within the Roman Catholic Church, where it started as a simple bread dough symbolizing prayer and evolved into the pretzel, a universal emblem for bakers. The modern Kringle owes its flaky texture to the 1850 Baker’s Strike in Denmark, during which Austrian bakers introduced the puff pastry technique. Danish bakers later perfected this with rich butter and sweet fillings, leading to the creation of the beloved wienerbrød.

By the late 19th and early 20th centuries, Danish immigrants in Racine, Wisconsin, known as "The Most Danish City in America," brought these traditional recipes, initially retaining the pretzel shape. In the 1940s and 1950s, bakers in Racine, such as the Olesens and Lehmanns, transformed the Kringle into a large oval shape to ensure even filling distribution. This meticulous three-day process gained national recognition in 1956, bolstered by President Eisenhower's endorsement. In 2013, Kringle was designated as Wisconsin's State Pastry, a testament to Racine's dedicated bakers who continue to ship Kringles worldwide, particularly during the Christmas season.

From Denmark to Racine: The Olesen Family's Journey to Establishing O&H Bakery

The story begins with Anton Olesen, who departed Denmark in 1921 in pursuit of a better life for his six children. After two years of working diligently as a farmhand and saving nearly every penny, he arranged for his teenage son, Christian, to join him in 1923. Christian secured employment at a local bakery in Racine, with approximately 10% of all Danish-Americans residing there. Christian dedicated the next 25 years to honing his skills in various local bakeries.

Christian Olesen, born in Denmark in 1906, established O&H Danish Bakery in Racine, Wisconsin. He emigrated to the United States in 1923, following his father. After 25 years of honing his skills in Danish pastry, he co-founded O&H Bakery with Harvey Holtz in 1949. Olesen revolutionized the Kringle by altering its shape to an oval, which increased its filling capacity and facilitated shipping. Renowned for his meticulous three-day dough process, he ensured the creation of 36 layers of pastry. Eventually, he acquired Holtz's share, transforming it into a family-owned business. In 1963, he transferred operations to his son, Ray, yet remained actively involved until his passing in 1983. O&H continues under the leadership of his great-grandchildren, upholding the "36-layer" standard.

While Christian Olesen brought baking expertise, Harvey Holtz provided the business and financial foundation that enabled O&H Danish Bakery to commence operations. Although less visible than the Olesen family, Holtz was an essential silent partner in the bakery's early achievements. A local bookkeeper in Racine, Wisconsin, Holtz collaborated with baker Christian Olesen in the late 1940s to establish the bakery. He contributed financial and administrative support, while Olesen managed production and recipes. This partnership allowed the bakery to prosper, even during challenging periods. Despite the change in ownership in 1963, the bakery retained the "O&H" name, acknowledging the brand's established identity in the community.

Ray and Myrna Olesen: Transforming O&H Danish Bakery into a National Icon

Raymond "Ray" Olesen (1932–2011) and his wife, Myrna Marie Olesen (1933–2024), played a pivotal role in elevating O&H Danish Bakery from a local Racine establishment to a brand of national acclaim. Born in Racine, Ray joined the bakery directly after high school and, alongside Myrna, driving substantial growth. Under their leadership, the bakery expanded into larger facilities and multiple locations. Ray was a trailblazer in the mail-order Kringle business and served as President of the Wisconsin Baker’s Association. Myrna, originally from Chicago, was the creative mind behind the bakery's branding and expansion strategies, including the development of the iconic Viking ship logo and the nationwide delivery of Kringle. She was also an expert in cake decorating, training bakers in the distinctive "O&H style." Both Ray and Myrna were deeply committed to their community and Danish heritage, leaving a lasting legacy through their business achievements and personal contributions.

The Legacy and Transformation of a Family Bakery: From Local Roots to National Recognition

In 1994, Ray and Myrna retired, entrusting their bakery to their sons, Dale, Mike, and Eric. Dale, the eldest, played a crucial role in managing the bakery's infrastructure, utilizing his art background to enhance store aesthetics. A lifelong resident of Racine, Dale was a passionate outdoorsman known for his hands-on management style until his sudden passing in 2009. Mike, who co-owned the bakery with his brothers, concentrated on retail management and mail-order fulfillment before retiring in 2012. Eric, serving as the public face of the bakery, spearheaded its digital transformation and introduced innovative kringle flavors, such as the Brandy Old Fashioned Kringle. Under his leadership, the bakery achieved national expansion, launched an online store, and successfully advocated for the kringle to be named Wisconsin's State Pastry in 2013. Eric remains actively involved as an owner, sharing the bakery's history and traditions, while his son Peter now holds the position of President.

Leadership and Innovation: Peter Olesen's Vision for O&H Danish Bakery's Future

O&H Danish Bakery is currently under the leadership of its fourth generation, with Peter Olesen serving as President, guiding the bakery's evolution into a modern, national brand. Peter assumed this role in July 2024, bringing with him a strong business foundation from his education at The Prairie School and the University of Wisconsin–Madison. His background in strategic consulting enhances his leadership approach, with a focus on scaling the familial atmosphere and professionalizing operations. As Vice President of Strategic Development, he established a shipping center for global mail-order Kringles and introduced the Cherry Almond Macaron Kringle, merging tradition with contemporary tastes. Peter is committed to professionalizing family business dynamics, having studied at the Wisconsin Family Business Center. He is actively involved in the Racine community, commemorating the bakery's 75th anniversary by preserving its traditional baking methods.

The Kringle Industry Today - Four Key Competitors

In the competitive landscape of Racine baking, four prominent names—O&H, Bendtsen’s, Lehmann’s, and Larsen’s—constitute the "Big Four." Although they all originate from 19th-century Danish traditions, each has established a unique identity through their specialized dough techniques and business philosophies.

Comparison of Racine’s “Big Four” Kringle Bakeries

	O&H Danish Bakery	Bendtsen’s Bakery	Lehmann’s Bakery	Larsen’s Bakery
Established	Established 1949	Established 1934	Established 1930s	Established 1969 (current ownership)
Layer Count	Layer Count 36 Layers	Layer Count 32–36 Layers	Layer Count 48+ Layers	Layer Count 32 Layers
Signature Technique	Signature Technique 3-day process; known for the most extensive seasonal flavor catalog and national shipping reach.	Signature Technique Hand-rolls dough the same way as in 1934; uses zero preservatives and strictly real butter.	Signature Technique Produces the highest layer count among the local shops; honey-glazed while warm before icing.	Signature Technique Focuses on 'maximalist' filling ratios; a family-run operation for over two generations.
Known For	Known For Pecan and Raspberry Kringle; official Kringle provider for Trader Joe's nationwide.	Known For Toasted Pecan with a gooey butterscotch base; often cited as the most 'old-world' taste.	Known For Gourmet Deluxe flavors like Bourbon Pecan and Peanut Butter & Jelly.	Known For Fruit-heavy fillings and traditional 'Almond Puff' style Kringles.
Texture	Texture Light, flaky, and tender; perfectly balanced between dough and filling.	Texture Crispier and thinner; focused on the 'crunch' of the pastry and nut fillings.	Texture Densely layered and incredibly rich; the honey glaze adds a unique floral sweetness.	Texture Soft and pillowy; the pastry acts as a delicate vessel for generous fruit and custard centers.

Although the "Kringle industry" occupies a niche segment within the expansive $500+ billion global bakery products market, it plays a vital role in the economy of Wisconsin. Current sales data from Racine's "Big Four" bakeries suggest that the industry is valued at between $60 million and $100 million annually. Leading the industry are key players that have transitioned from local enterprises to national e-commerce leaders. Racine Danish Kringles (RDK) is the largest provider, with annual sales exceeding 1 million Kringles, and peak production reaching 10,000 to 12,000 Kringles daily during the holiday season. O&H Danish Bakery, with annual revenues ranging from $10 million to $50 million, leverages a partnership with Trader Joe’s to distribute to nearly 600 stores nationwide. Collectively, these Racine-based bakeries ship hundreds of thousands of units monthly in winter, establishing Kringles as a leading mail-order food item in the U.S. Consumer trends for 2026 indicate a preference for "Comfort Zone" foods, with Kringles fitting this category due to their traditional, artisanal three-day production process.

Competitive Dynamics and Challenges in Racine's Kringle Industry

Analyzing Racine's kringle industry through the lens of Michael Porter's Five Forces reveals a market that is both geographically concentrated and nationally competitive. By early 2026, traditional artisanal methods converge with advanced e-commerce technologies and a "K-shaped" consumer economy. The industry encounters significant entry barriers due to its specialized nature, including the complex lamination process, regulatory requirements such as SQF certification, and a strong brand heritage led by companies like Olesen and Bendtsen. Price sensitivity is a key factor, with major players like O&H and RDK leveraging volume purchasing to control costs. Retailers, including Trader Joe’s, exert considerable influence, driving bakeries to compete on shipping efficiency and flavor variety. Although kringles are distinct, they compete with other premium desserts for consumer expenditure, with some protection offered by their status as Wisconsin’s Official State Pastry. However, health trends pose a long-term challenge. The mature market experiences growth driven by competition among major players, emphasizing improvements in fulfillment efficiency and last-mile delivery.

The O&H Strategy - Using the Hambrick and Fredrickson Strategy Diamond framework

O&H Danish Bakery strategically blends five key elements—Arenas, Vehicles, Differentiators, Staging, and Economic Logic—under the Hambrick and Fredrickson Strategy Diamond. Specializing in premium Danish pastries like Kringle, O&H operates from Racine, Wisconsin, with five retail locations and extends its reach through e-commerce and a partnership with Trader Joe's. Their growth is organic, family-managed, focusing on brand integrity and e-commerce investment. Their competitive edge is authenticity, heritage, and flavor innovation, highlighted by a unique "36-layer, 3-day process." Growth is patient and generational, moving from local to national presence through a "Digital Pivot," employing a Premium Pricing / High Volume Hybrid strategy to maintain margins with quality ingredients.

The Seven Power Analysis of O&H bakery

O&H's sustained success over 75 years is effectively illustrated by Hamilton Helmer’s 7 Powers framework, highlighting their strategic dominance over industry competitors. The key powers include:

• Counter-Positioning: O&H's distinctive three-day, 36-layer process provides a significant advantage over competitors who cannot replicate it without altering their cost-effective models.

• Branding: Their designation as the "Official State Pastry" and the Olesen family's heritage enhance their brand, allowing for premium pricing through emotional connections with consumers.

• Switching Costs: Although low, O&H establishes a psychological barrier with traditions and corporate gifting, making switching feel like breaking tradition.

• Cornered Resource: The Olesen family's legacy represents a unique, irreplaceable resource of human capital and institutional knowledge.

• Network Economies: There is a minor "gift network" effect, where recipients become customers, although branding has a more significant impact.

• Scale Economies: Centralized production and partnerships with Trader Joe's and e-commerce facilitate high-volume production and cost advantages.

• Process Power: The expertise of master bakers and a nuanced understanding of dough create a process that is difficult to replicate, even with the recipe.

Kringle Industry's Evolution: From Regional Delicacy to National Heritage Brand by 2030

The Kringle industry is poised for growth beyond 2026, transitioning from a regional delicacy to a significant category of "mindful indulgence." Core bakeries in Racine play a vital role, adapting to the increasing demands for transparency, health, and sensory experiences. With the global specialty bakery market expected to reach $67.9 billion by 2030, Wisconsin's food manufacturing sector aids in stabilizing costs, thereby benefiting local bakeries amidst economic fluctuations. Kringles are positioned as an affordable luxury, offering a "Premium Moment." Consumer trends for 2026 highlight "Classic with a Twist," which combines traditional recipes with innovative textures, and "Perfect Portions" for controlled indulgence. There is a strong emphasis on transparency and the use of local ingredients, such as Door County Cherries and Wisconsin dairy. Under the leadership of Peter Olesen, O&H is modernizing with "Physical AI" and data analytics to maintain quality and enhance supply chain resilience.

The Kringle is evolving from a "Wisconsin secret" to a national heritage brand. By 2030, the industry will be more technologically integrated while remaining true to its 19th-century origins. The objective for O&H and other bakeries is to preserve the 36-layer "Hygge" experience while delivering it through an efficient, digital-first global supply chain.

Sources:

1. O&H Danish Bakery & Olesen Family History

• O&H Danish Bakery. (2024). A Family Tradition: The Story of O&H. Retrieved from ohdanishbakery.com.

  • Primary source for the 1921–1949 timeline and the 36-layer/3-day process.

• Maresh-Meredith & Acklam. (2011). Obituary: Raymond Christian Olesen (1932–2011). * Source for Ray Olesen’s leadership, his expansion to Douglas Ave, and his community involvement.

• O&H Danish Bakery. (2021). Our Family History: Expanding on the Tradition. Retrieved from ohdanishbakery.com/hygge-blog.

  • Details on the transition from the pretzel to the oval shape in the 1950s.

• The National Law Review. (2025). O&H Danish Bakery Voted Best Bakery and Best Kringle. * Recent profile on Peter Olesen’s presidency and the 75th-anniversary milestones.

2. Kringle History & Regional Context

• Travel Wisconsin. (2026). Wisconsin Specialty: The Kringle. Official Site of the Wisconsin Department of Tourism.

  • Reference for the 2013 "Official State Pastry" designation and Racine's "Kringle Capital" status.

• WTTW Chicago. (2025). The Kringle: A Wisconsin Specialty by Way of Denmark. * Source for the European roots, the 1850 Danish bakers' strike, and the Austrian influence.

• Alex Savakis. (2023). Kringle Creator and Baker Christian Olesen: Illustrated Portraiture. * Historical background on the Eisenhower endorsement in 1956.

3. Business Strategy Frameworks (Academic)

• Helmer, Hamilton. (2016). 7 Powers: The Foundations of Business Strategy. Deep Strategy.

  • The definitive source for the 7 Powers framework (Counter-Positioning, Branding, etc.).

• Hambrick, D. C., & Fredrickson, J. W. (2001). Are you sure you have a strategy? Academy of Management Executive.

  • The original source for the Strategy Diamond framework (Arenas, Vehicles, Differentiators, Staging, Economic Logic).

• Porter, Michael E. (1979/2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review.

  • The foundation for the Five Forces industry analysis.