equity: industry analysis: "integrate backward" attractive, industry, backward, equity

cyber21

sometime in industry analysis, i see “lack attractive opportunies to integrate backwards”? what is “integrate backwards”? Thanks.

kasinkei

It means moving backwards in the supply chain, like when a brewery buys the farm that supplys the hops/grain. Forward integration would be if the farmer bought out the brewery. So your buying backwards in your supply chain gaurantee your supply of raw materials