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6d ago

UNFI Network Shutdown Prolongs Grocery Supply Disruptions

Containment measures taken on June 5 have left order fulfillment constrained as UNFI restores its IT systems.

Produce displayed for sale a Whole Foods Market Daily Shop ahead of opening in the Upper East Side neighborhood of New York, US, on Tuesday, Sept. 17, 2024. Whole Foods Market is opening new small-format stores aimed at serving quick-trip urban consumers, with its first set to open on Sept. 18 in New York. Photographer: Yuki Iwamura/Bloomberg
a photo of the frozen and refrigerated section at a local Whole Foods, with empty spaces, and signs warning of an out-of-stock issue.
A Whole Foods grocery store in New York City.
An employee stocks the shelves with fresh peppers in the produce section at Whole Foods in Dublin, Ohio on Friday, November 7, 2014.

Overview

  • UNFI detected unauthorized access on June 5 and proactively shut down its entire network to contain the breach.
  • Sandy Douglas said the company is shipping to customers on a limited basis while safely restoring IT systems.
  • Whole Foods stores have experienced empty shelves and are working to restock as quickly as possible with contingency measures.
  • UNFI has notified law enforcement and enlisted third-party cybersecurity experts to assess, mitigate and remediate the incident.
  • UNFI shares tumbled over 8% following the cyberattack disclosure, highlighting investor anxiety and sector-wide cyber risks.