America’s leading organic grocery store faces empty shelves and supply chaos as a major cyberattack has crippled its primary distributor, leaving shoppers frustrated and local businesses scrambling for alternatives.
This from patriotnewsdaily.com.
United Natural Foods Inc. (UNFI), the largest publicly traded wholesale distributor in North America and primary supplier to Whole Foods, has fallen victim to a cyberattack that has crippled its distribution capabilities. The company detected “unauthorized activity” in their systems last week and was forced to take numerous critical IT systems offline, effectively halting deliveries to thousands of locations across the country. This disruption comes at a particularly vulnerable time as UNFI prepares to release its third-quarter financial results on June 10, with its stock already dropping 8.5% following the news of the attack.
Steve Schwartz of Morton Williams grocery chain said:
It’s bringing the company to a standstill with no orders generated and no orders coming in.
The company distributes groceries and non-food products to approximately 30,000 locations nationwide and has a primary distribution agreement with Whole Foods Market that extends until May 2032. While UNFI has notified law enforcement and brought in third-party cybersecurity experts, the company has provided little detail about the nature of the attack or how long services might be disrupted. Employees have reported nationwide system outages and a concerning lack of communication from corporate leadership as the situation unfolds.
The impact of this cyberattack is already being felt by consumers and businesses alike. Whole Foods stores across the country are struggling to maintain inventory levels, with many shelves already showing signs of depletion. The organic grocery giant has been forced to apologize to customers as they scramble to find alternative supply channels. Other businesses dependent on UNFI’s distribution network are facing even more dire circumstances, with some bakeries already running out of essential supplies and scrambling to find new vendors to keep their operations running.
Whole Foods told The Independent they are:
[W]orking to restock our shelves as quickly as possible and apologize for any inconvenience this may have caused for customers.
Reports on social media and from store employees describe a chaotic situation where deliveries arrive late and without proper documentation. Some workers have reportedly been told not to come to work due to the system outage, while others struggle with the inability to process incoming shipments properly. The Morton Williams grocery chain and other businesses have already begun seeking alternative suppliers as UNFI struggles to restore its systems, highlighting the vulnerability of our food supply chain to digital disruptions.
Security experts warn that this attack on UNFI represents a dangerous trend of cyber criminals targeting critical infrastructure and essential services. The food supply chain is particularly vulnerable to such disruptions, with potentially far-reaching consequences for businesses and consumers. This incident follows a similar cyberattack last fall on Dutch grocery company Ahold Delhaize that disrupted its e-commerce services, suggesting that food distribution networks are becoming prime targets for cyber criminals looking to cause maximum disruption.
Adrianus Warmenhoven, cybersecurity expert, said:
What we are seeing with UNFI and, just last week, with Victoria’s Secret, reflects a growing trend: threat actors are targeting critical infrastructure and high-traffic consumer platforms for maximum disruption and financial leverage.
UNFI has issued a brief statement having said:
[They are] assessing the unauthorized activity and working to restore our systems to safely bring them back online [while working to] minimize disruption as much as possible.
However, with no timeline provided for service restoration and the company’s third-quarter earnings call looming, both investors and customers are left wondering how long this disruption will last and what additional protections will be needed to safeguard our critical food distribution infrastructure in the future.
Final thought: This is only one food supplier. What if….?
