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In the distribution, retailers needed financing help with the purchases of refrigerators. In such scenario, it made sense for Birds Eye to both forward and backward integrate as it had the both the capabilities and resources to manage the entire supply chain.· Rapid Growth: During the 1950's and 60's the tonnage sales were increasing at a rapid rate of 40% per annum. During such remarkable growth periods it makes sense for companies to vertically integrate so as to secure the raw materials, ramp up distribution and production capacities in order to keep up with the demand.
· Quality of the Product: The products sold by Birds Eye had to be high quality because of the additional overhead of freezing and the products had to be frozen at the right moment within hours to justify the premium...
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