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Vertically Integrated Business Model

A vertically integrated local food company is a company that reaches financial sustainability in a local market by having retail, wholesale and manufacturing components in the business. This allows the company to capture the margin contribution of more than one level of the value chain. Examples of vertically integrated local food companies include:

• A micro mill and bakery, restaurant and direct distribution wholesale business.
• A meat cutting facility and butcher shop and direct distribution wholesale business that is owned by farmers.
• A patisserie with two locations that has a direct distribution wholesale candy business.
• An organic dairy farm with a processing facility, store and direct distribution wholesale business.
• A taproom and brewery that sells direct to consumers on-line and through distributors.

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