UNFI Back to Normal Operations After Cyberattack
Three weeks after its IT systems were hacked, United Natural Foods Inc., (UNFI) has released a statement that the cyberincident is now contained. The wholesaler has safely restored the core systems that its retail customers and suppliers use to do business.
“With our electronic ordering and invoicing systems back online, we are delivering products to grocery stores across our network at more normalized levels,” the company statement read. “We are grateful to all our customers and suppliers for their patience and partnership as our UNFI associates continue working to support their needs.”
UNFI became aware of unauthorized activity with certain IT systems on June 5. The company promptly activated its incident response plan and implemented containment measures, including proactively taking certain systems offline, which temporarily affected the company’s ability to fulfill and distribute customer orders.
On June 15, UNFI revealed that it was once again receiving orders and delivering products to its grocery store customers across North America, including Whole Foods Market locations. Last year, UNFI entered into an eight-year extension agreement with Whole Foods to serve as its primary distributor.
Meanwhile, UNFI continues to closely monitor the effect of the recent cyberattack on its business, financial condition and results of operations. In the weeks following the incident, the company experienced reduced sales volume and increased operational costs as it worked to drive solutions-oriented results for its customers. The company also incurred, and expects to continue to incur, direct expenses related to the investigation and remediation of the incident.
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Based on the information currently available, management believes that the incident is reasonably likely to have an impact on the UNFI’s net income/(loss) and adjusted EBITDA for the fourth fiscal quarter of 2025, compared with its internal projections prior to the incident.
UNFI fared well in its most recent quarter ended May 3. Net sales increased 7.5% to $8.1 billion in Q3 compared with the same period in the prior year, primarily driven by a 4% bump in wholesale unit volumes, including the benefit of new business with existing and new customers, as well as inflation. This performance was led by natural product growth.
The company holds cybersecurity insurance that it expects will be adequate for the information breach, and expects that the full claim and settlement process will extend into its 2026 fiscal year.
UNFI doesn’t anticipate sending any notifications to individual consumers as a result of this cyberattack because it didn’t involve a breach of security of personal information or protected health information.
One of the largest publicly traded wholesale distributors of health and specialty food in North America, UNFI operates more than 50 distribution centers and delivers health and specialty food to 30,000-plus locations across the United States and Canada. The Providence, R.I.-based company is No. 20 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America.
