When a beverage company acquires a water purification plant,it is an example of backward integration of distribution channels.

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Backward integration is a strategy where a company acquires or merges with a supplier or manufacturer in order to gain more control over its supply chain. In this case, the beverage company is acquiring a water purification plant, which is a supplier of water for the production of the beverage. This is an example of backward integration.

When a Beverage Company Acquires a Water Purification Plant,it Is