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2d ago

UNFI Cyberattack Causes Widespread Grocery Shortages as Recovery Progresses

UNFI gradually restored ordering and receiving systems on June 11, aiming to resume normal distribution by Sunday.

Whole Foods Market grocery store in New York City.
A Whole Foods Market at the Paradise Valley Mall in Phoenix, Arizona on Dec. 11, 2024.
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Overview

  • UNFI discovered unauthorized activity on June 5 and shut down key systems on June 6, notifying regulators of the breach in an SEC filing on June 9.
  • Deliveries stalled to over 30,000 stores, prompting empty shelves and supply gaps at Whole Foods markets and independent grocers nationwide.
  • The distributor is coordinating with forensics teams, the FBI, and customers to deploy short-term workarounds while investigating the incident.
  • CEO Sandy Douglas said UNFI is prioritizing phased service resumption and expects to meet core product demand by this weekend.
  • UNFI’s shares fell 8.5% after the breach, reflecting investor concern as cybersecurity specialists warn of a growing trend of attacks on critical supply chains.