Backward integration

Backward integration
• Backward integration is a form of vertical integration in which a
company expands its role to fulfill tasks formerly completed by
businesses up the supply chain. 
• In backward integration company becomes its own supplier.
Starbucks acquires coffee farm
 Hacienda Alsacia
• About 45 minutes from the Costa Rican capital of San Jose sits a
nearly 600-acre coffee farm called Hacienda Alsacia.
• Acquired by Starbucks in 2013, but producing coffee for more than 70
years.
• At the farm, Starbucks researches and develops hybrid Arabica coffee
trees that are bred to be resistant to diseases like the coffee rust
fungus to ensure quality of coffee.