Whole Foods Faces Supply Issues Following Cyberattack on Major Distributor

New York, NY — Whole Foods is experiencing significant supply disruptions following a cyberattack on its primary distributor, United Natural Foods, Inc. (UNFI). The attack was discovered last Thursday, leading UNFI to temporarily shut down its systems. The fallout has left many Whole Foods locations with empty shelves and frustrated customers.

Employees at Whole Foods have reported bare food aisles and empty freezers. A barista from an Arkansas location said, “Our frozen cooler is empty, our bread hearth is bare, and customers are increasingly upset.” The employee spoke on condition of anonymity, citing company policy. Customers have expressed their dissatisfaction on social media, showcasing images of empty refrigerators at stores.

UNFI, the leading distributor for Whole Foods, revealed in a statement that it had identified “unauthorized activity” in its systems last week. The company’s stock plunged by 7% on Monday after announcing the cyberattack, and it fell another 10% on Tuesday.

Despite these challenges, a spokesperson for Whole Foods stated that the Amazon-owned grocery chain is working diligently to restock its shelves as quickly as possible. However, specifics on how many locations are impacted remain undisclosed.

Another employee from California noted that her store has been unable to accept orders due to the disruption, resulting in numerous customer complaints. “We’ve had quite a few customer complaints,” she said.

Halfway across the nation, Jennie Scheinbach, founder of Pattycake Bakery in Ohio, voiced her concerns about UNFI’s lack of communication. “I’m sure they’re working closely with Whole Foods/Amazon, but what about us little guys?” she questioned.

UNFI CEO Sandy Douglas addressed the situation during a conference call, emphasizing the company’s commitment to working with customers and suppliers to alleviate the temporary disruptions. He stated, “We’re working as rapidly and safely as possible to bring our systems back online.” Douglas has acknowledged the need to review and strengthen its cybersecurity measures in light of the breach.

As the investigation into the cyberattack continues, the implications for Whole Foods and its customers highlight the vulnerabilities within supply chains. The incident has raised questions about UNFI’s delayed disclosure of the attack and whether regulators, including the Securities and Exchange Commission, will take notice.