Vertical integration refers to the degree to which two or more consecutive stages of the supply chain are performed within the same company. If a firm expands into activities downstream, it is integrating forward, while upstream expansion is considered as a backward integration.
PepsiCo is a company that has been using vertical integration quite extensively in its business strategy. Originally, the company has been engaged in producing and selling solely their "Pepsi-Cola" drink, however, later PepsiCo expanded its business into other snacks and beverages. One of the most significant attempts to integrate forward for PepsiCo was the acquisition of ...