forward integration

Merging with, or buying, a company further down the supply chain. Examples would be a wholesaler purchasing a retailer, or a brewery buying a chain of pubs. Forward integration gives a company more control over the supply chain to the point of sale. A brewery that purchases a chain of pubs can decide which beers are sold in the pubs, thereby exercising control over their competition. However, lack of competition can give rise to complacency and consumers do not always react positively to this kind of control of the market.