Reference no: EM132945794

British Columbian farmer Bill Vanderkooi is the mastermind behind the Nutriva group, a company that is a successful example of vertical integration. As a simple dairy farmer, Vanderkooi realized his farm would never succeed without a distinctive brand. In 2000, he decided to link his farms to healthy living by establishing his own organic feed business. His farm produced eggs from free-range hens, and Omega-3 milk from his specially fed cows, which helped Vanderkooi launch his own food brand and grocery store. The Nutriva Group now develops, produces, and distributes food to a customer base that craves its healthy products. Nutriva controls every aspect of the supply chain, and by owning its own stores, it also controls the method of distribution. This allows the company to rigidly monitor every aspect of its business, from choosing the kind of food that its cows eat on the company's farms to developing robotic milkers to speed production, and transporting organic milk to its stores as well as to independent buyers. The company generates an estimated annual revenue of $29.7 million.

In what ways has the Nutriva group engaged in backward vertical integration?