UNFI Cyberattack: What CPG Food & Beverage Brands Must Do Now

On June 5, 2025, United Natural Foods, Inc. (UNFI), one of the largest publicly traded wholesale food distributors in the U.S. and a key supplier to Whole Foods, was hit by a major cyberattack, causing widespread supply chain disruptions across the country.

The breach forced UNFI to take critical IT systems offline, delaying deliveries, canceling orders, and leaving grocery stores scrambling for stock. For food and beverage businesses that rely on timely fulfillment, this incident is a wake-up call about supply chain cybersecurity and vendor risk exposure.

What Happened in the UNFI Cyberattack?

Current UNFI Cyberattack Summary:

• Incident Date: June 5, 2025
• Disruption: IT systems taken offline, halting order fulfillment and logistics
• UNFI Response: UNFI shut down systems as soon as unauthorized activity was detected, initiating incident response and notifying law enforcement, and has engaged with third-party cybersecurity experts
• UNFI response: UNFI shut down systems as soon as unauthorized activity was detected, initiating incident response and notifying law enforcement, and has engaged with third-party cybersecurity experts.
  • UNFI System Update
• Affected Clients: Over 30,000 locations, including Whole Foods, Cub Foods, regional grocery stores, pharmacies, and food co-ops
• Geographic Impact: Disruptions reported nationwide, with early shortages in Minnesota, Pennsylvania, and North Dakota
  • Reports are emerging of empty shelves, especially for perishables, with retailers in those areas
• Financial Fallout: UNFI shares sank more than 10% on Tuesday, leaving it down about 17% since disclosing the cyberattack. They’ve reduced earnings guidance due to the breach-related uncertainty

What This Means for CPG Business Owners in Food & Beverage

A cyber incident like this can stop operations overnight if your business relies on a single supplier or distributor. This is especially dangerous in perishable food logistics, where every hour counts. Many food & beverage brands affected by the UNFI outage are now facing missed shipments, customer complaints, and financial losses.

7 Ways to Mitigate Supply Chain Risk in Food & Beverage

Here are actionable steps CPG food and beverage brands and copacker/manufacturers can take:

1. Diversify Your Supplier Network

Relying on a single food distributor, especially one as large as UNFI, can expose your business to significant operational risk. A cyberattack or service outage at a centralized partner can trigger a chain reaction of missed deliveries, product shortages, and revenue loss.

To build resilience:

• Map your supply chain to identify single points of failure.
• Establish relationships with secondary suppliers or co-distributors, whether smaller or regional.
• Vet backups in advance so they’re ready to step in during emergencies.

Food & beverage companies with diversified vendor networks reported fewer delays and stockouts during the UNFI cyberattack. Flexibility is no longer optional; it’s a competitive advantage.

2. Conduct Cybersecurity Audits on Critical Partners

The UNFI cyberattack highlights a critical truth: your vendors’ cybersecurity posture directly impacts your operations. While UNFI took swift action, engaging forensic experts and initiating containment, many of their clients were still left scrambling.

To protect your business:

• Conduct cybersecurity audits on all key suppliers and logistics partners.
• Request documentation on incident detection systems, response protocols, and disaster recovery plans.
• Verify recovery time objectives (RTOs) to understand how quickly your partners can return online.

Cyber resilience should be a shared standard. If your vendors aren’t prepared, neither are you.

3. Establish Inventory Buffers for Core SKUs

When supply chain disruptions hit, like the UNFI cyberattack, businesses with no buffer are the first to feel the impact. Maintaining a safety stock of your most in-demand, seasonal, or perishable items can help you weather short-term outages without sacrificing sales or customer trust.

To prepare:

• Identify high-turnover and mission-critical SKUs in advance.
• Build inventory buffers based on lead time, shelf life, and demand cycles.
• Inventory planning software is used to model “what-if” scenarios and adjust safety stock dynamically.

A proactive approach to stock management can make the difference between delayed deliveries and uninterrupted fulfillment.

4. Draft a Business Continuity Plan (BCP)

A disruption like the UNFI cyberattack shows how quickly operations can grind to a halt. A well-developed Business Continuity Plan (BCP) ensures your team knows exactly what to do when the unexpected happens, whether it’s a cyberattack, port closure, or distributor outage.

How to build an effective BCP:

• Identify critical scenarios that could impact fulfillment or cash flow.
• Define internal roles and responsibilities for crisis response.
• Create ready-to-send communication templates for vendors, customers, and partners.
• Regularly test and update the plan to reflect current threats and supply chain changes.

A BCP isn’t just a document; it’s a strategic asset that protects your operations, reputation, and bottom line.

5. Negotiate Smart Contracts

Your contracts should protect more than pricing; they should protect your operations. Strong contractual language can clarify responsibilities, reduce delays, and even enable financial recourse when supply chain disruptions stem from cyberattacks or system outages.

When drafting or renewing agreements:

• Include incident response clauses that define how and when vendors must notify you of disruptions.
• Set clear service-level expectations, including recovery timeframes and backup protocols.
• Establish penalties or alternative arrangements for non-performance due to preventable cybersecurity lapses.

Smart contracts turn risk management into a shared responsibility, not just your burden to bear.

6. Explore Cyber Risk Insurance for Supply Chain Interruptions

As cyberattacks on critical vendors become more frequent, cyber risk insurance has become an essential part of a comprehensive risk management strategy. Some modern policies now cover business interruptions caused by third-party breaches, like the UNFI incident.

To strengthen protection:

• Review your current policy to confirm it includes supply chain interruption coverage.
• Consult your broker about available endorsements that address vendor-side cyber events.
• Align insurance with your contracts, ensuring vendors are held to clear notification, recovery, and liability standards.

Transferring some of the financial risk through insurance can help your business stay resilient, no matter where the breach originates.

7. Stay Informed on Emerging Cyber Threats

Cyber risk is constantly evolving, and staying ahead of it requires ongoing awareness. The food and beverage sector has become an increasingly attractive target for bad actors due to its reliance on real-time logistics and centralized distribution.

To stay proactive:

• Subscribe to industry threat alerts from sources like CISA, FDA, and trade associations.
• Monitor cybersecurity trends specific to logistics, warehousing, and food supply chains.
• Conduct regular internal reviews of your risk posture based on current threats and disruptions in the market.

Staying informed isn’t just good practice, it’s your first line of defense.

A Real-World Lesson in Operational Resilience

This event underscores a growing trend: The UNFI cyberattack is not an isolated incident; it’s part of a growing trend in which cybersecurity threats are disrupting food supply chains at an unprecedented scale. Unlike weather events or labor strikes, these attacks happen without warning and can take weeks to resolve.

In 2021, meat processing giant JBS was forced to shut down operations across North America after a ransomware breach. In 2025, it’s UNFI, disrupting thousands of grocery stores and food businesses nationwide. And it won’t stop there.

These events highlight a harsh reality: if your business depends on a vulnerable vendor, you’re vulnerable too.

That’s why food and beverage companies must take action now, before the next breach hits:

• Build redundancy into your supply chain
• Audit the cyber readiness of your partners
• Create buffers, continuity plans, and smarter contracts
• Consider cyber insurance for third-party disruptions
• Stay informed and adaptable

Don’t Let a Cyberattack Derail Your Business – Express Trade Capital is Here to Help

We support CPG food and beverage brands, importers, and copackers/manufacturers with the financial strength and supply chain insights needed to navigate disruption, especially when partners like distributors or freight providers fall short.

Our solutions help you stay agile and operational:

• Purchase Order Financing
  Access the capital you need to fulfill large orders quickly, even when suppliers delay or systems fail.
• Accounts Receivable Factoring
  Turn outstanding invoices into working capital to maintain cash flow and meet ongoing business demands.
• Supply Chain Consultation
  Stress-test your vendor relationships, fulfillment processes, and contract terms to minimize risk and improve continuity.

Whether you import shelf-stable goods, specialty ingredients, or packaged beverages, we help you stay ready to act, no matter what disruptions arise.