General Mills, Inc., is one of the largest multinational
manufacturers and marketers of branded consumer foods in the United
States. In 2014, General Mills bought the natural and organic food
company Annie's Homegrown for $820 million, which was about 37%
higher than its last closing stock price. Is this acquisition a
horizontal or vertical expansion for General Mills? Using the
concepts of the firm's boundaries, please briefly explain the
strategic logic of such an expansion?