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Business Wire
16-07-2025
- Business
- Business Wire
United Natural Foods, Inc. Provides Business Update
PROVIDENCE, R.I.--(BUSINESS WIRE)--United Natural Foods, Inc. (NYSE: UNFI) (the 'Company' or 'UNFI') today provided a business update, including a revised full-year outlook for its fiscal 2025 (52 weeks ending August 2, 2025). Highlights Management to host call discussing revised outlook and business update today at 8:30 a.m. ET Revised outlook reflects strong performance for first three quarters of fiscal year as well as the estimated impact of previously disclosed cyber incident. Previously disclosed performance through the third quarter vs. prior year: Net sales increased 5.5% Net loss improved by $44 million dollars; EPS improved by $0.75 Adjusted EBITDA (1) increased by 16% Operating cash flow increased to $310 million Free cash flow (1) increased to $153 million Company continues to have high confidence in multi-year strategy and expects to realize previously announced long-term financial targets at an accelerated pace compared to its initial targets Expect to reduce net leverage (1) to nearly 2.5x by year-end fiscal 2026; around a year earlier than initially projected 'We are grateful to our customers, suppliers, and associates for their resilience and collaboration as we worked through a challenging period for all of us. With our operations returning to more normalized levels, we remain focused on adding value for our customers and suppliers while becoming a more efficient and effective partner,' said Sandy Douglas, UNFI's CEO. 'With a proven multi-year strategy and consistent execution through the third quarter of fiscal 2025, we are confident in our underlying momentum and our ability to achieve our multi-year financial targets at an accelerated pace compared to the initial targets we communicated in October 2024.' Updated Fiscal 2025 Outlook (2) The Company is updating its full-year outlook to reflect its strong performance for the first three fiscal quarters of 2025 and the estimated costs and charges associated with the previously disclosed cyber incident. The Company estimates that the cyber incident will impact fiscal 2025 net sales by approximately $350 to $400 million, net (loss) income by $50 to $60 million, which includes the estimated tax impact, and adjusted EBITDA by approximately $40 to $50 million. These estimates do not reflect the benefit of anticipated insurance proceeds, which the Company expects will be adequate for the incident. The Company does not currently expect a meaningful operational or financial impact beyond the fourth quarter of fiscal 2025 aside from insurance reimbursement. (1) See additional information at the end of this release regarding non-GAAP financial measures. Net leverage refers to Net debt to Adjusted EBITDA leverage ratio. (2) The outlook provided above is for fiscal 2025 only. The outlook is forward-looking, is based on management's current estimates and expectations and is subject to a number of risks, including many that are outside of management's control. See cautionary Safe Harbor Statement below. Fiscal 2024 was a 53 week year. Net sales for fiscal 2024 were $30.4 billion on a comparable 52-week basis, excluding an approximate $582 million benefit from the additional week in fiscal 2024. Adjusted EBITDA for fiscal 2024 included an approximate $10 million benefit from the additional week in fiscal 2024. The estimated contribution from the additional week is calculated by subtracting one-fifth of the respective metrics for the last five-week period within the 14-week fourth quarter of fiscal 2024, as disclosed in the Company's press release from October 1, 2024. (3) (Loss) earnings per share amounts as presented include rounding. (4) The Company is unable to provide a full reconciliation for outlook to the most comparable GAAP measure without unreasonable effort due to the difficulty in predicting the amounts for certain adjustment items. (5) The Company uses an adjusted effective tax rate in calculating Adjusted EPS. The outlook for Adjusted EPS currently reflects a tax rate of 20%. The Company is unable to provide a full reconciliation to the most comparable GAAP measure without unreasonable effort due to the difficulty in predicting the amounts for certain adjustment items. (6) The components of capital and cloud implementation expenditures for fiscal 2025 will be primarily dependent on the nature of certain contracts to be executed. As such, the Company is unable to reconcile the outlook for free cash flow as well as capital and cloud implementation expenditures in fiscal 2025 to the most directly comparable financial measures calculated in accordance with GAAP. Expand Conference Call and Webcast The Company has scheduled a conference call and audio webcast for today, Wednesday, July 16, 2025 at 8:30 a.m. ET to provide a business update and to discuss the Company's revised outlook. A webcast of the conference call (and supplemental materials) will be available to the public, on a listen only basis, via the internet at the Investors section of the Company's website The call can also be accessed at (800) 715-9871 (conference ID 5462932). An online archive of the webcast (and supplemental materials) will be available for 120 days. About United Natural Foods UNFI is North America's premier grocery wholesaler delivering the widest variety of fresh, branded, and owned brand products to more than 30,000 locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, eCommerce providers, and foodservice customers. UNFI also provides a broad range of value-added services and segmented marketing expertise, including proprietary technology, data, market insights, and shelf management to help customers and suppliers build their businesses and brands. As the largest full-service grocery partner in North America, UNFI is committed to building a food system that is better for all and is uniquely positioned to deliver great food, more choices, and fresh thinking to customers. To learn more about how UNFI is delivering value for its stakeholders, visit Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company's business that are not historical facts are 'forward-looking statements' that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company's filings under the Securities Exchange Act of 1934, as amended, including under the section entitled 'Risk Factors' in the Company's annual report on Form 10-K for the year ended August 3, 2024 filed with the Securities and Exchange Commission (the 'SEC') on October 1, 2024 and other filings the Company makes with the SEC, and include, but are not limited to, our dependence on principal customers; the relatively low margins of our business, which are sensitive to inflationary and deflationary pressures and intense competition, including as a result of the continuing consolidation of retailers and the growth of consumer choices for grocery and consumable purchases; our ability to realize the anticipated benefits of our strategic initiatives; changes in relationships with our suppliers; our ability to operate, and rely on third parties to operate, reliable and secure technology systems, and the effectiveness of the Company's business continuity plans in response to an incident impacting the Company's technology systems, such as the unauthorized incident on its technology systems; labor and other workforce shortages and challenges; the addition or loss of significant customers or material changes to our relationships with these customers; our ability to realize anticipated benefits of strategic transactions; our ability to continue to grow sales, including of our higher margin natural and organic foods and non-food products; our ability to maintain sufficient volume in our wholesale distribution and services businesses to support our operating infrastructure; our ability to access additional capital; increases in healthcare, pension and other costs under our single employer benefit plan and multiemployer benefit plans; the potential for additional asset impairment charges; our sensitivity to general economic conditions including inflation, tariff policy and changes in disposable income levels and consumer purchasing habits; our ability to timely and successfully deploy our warehouse management system throughout our distribution centers and our transportation management system across the Company and to achieve efficiencies and cost savings from these efforts; the potential for disruptions in our supply chain or our distribution capabilities from circumstances beyond our control, including due to lack of long-term contracts, severe weather, labor shortages or work stoppages or otherwise; moderated supplier promotional activity, including decreased forward buying opportunities; union-organizing activities that could cause labor relations difficulties and increased costs; our ability to maintain food quality and safety; and volatility in fuel costs. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company's control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced estimates, but it is not obligated to do so. Non-GAAP Financial Measures: To supplement the financial information presented on a U.S. generally accepted accounting principles ('GAAP') basis, the Company has included in this press release the non-GAAP financial measures Adjusted EBITDA, adjusted earnings per diluted common share ('Adjusted EPS'), adjusted effective tax rate, free cash flow, net debt to Adjusted EBITDA leverage ratio and Capital and cloud implementation expenditures. Adjusted EBITDA is a consolidated measure which the Company reconciles by adding Net (loss) income including noncontrolling interests, less Net income attributable to noncontrolling interests, plus Non-operating income and expenses, including Net periodic benefit income, excluding service cost, Interest expense, net and Other (income) expense, net, plus (Benefit) provision for income taxes and Depreciation and amortization all calculated in accordance with GAAP, plus adjustments for Share-based compensation, non-cash LIFO charge or benefit, Restructuring, acquisition and integration related expenses, Goodwill impairment charges, Loss (gain) on sale of assets and other asset charges, certain legal charges and gains, and certain other non-cash charges or other items, as determined by management. Adjusted EPS is a consolidated measure, which the Company reconciles by adding Net income attributable to UNFI plus the LIFO charge or benefit, Goodwill impairment benefits and charges, Restructuring, acquisition, and integration related expenses, gains and losses on sales of assets, certain legal charges and gains, surplus property depreciation and interest expense, losses on debt extinguishment, the impact of diluted shares when GAAP earnings is presented as a loss and non-GAAP earnings represent income, and the tax impact of adjustments and the adjusted effective tax rate, which tax impact is calculated using the adjusted effective tax rate, and certain other non-cash charges or items, as determined by management. The adjusted effective tax rate is calculated based on adjusted net income before tax and excludes the potential impact of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. Free cash flow is defined as net cash provided by operating activities less payments for capital expenditures. Net debt to Adjusted EBITDA leverage ratio is defined as the total carrying value of the Company's outstanding short- and long-term debt and finance lease liabilities less net cash and cash equivalents, the sum of which is divided by the trailing four quarters Adjusted EBITDA. Capital and cloud implementation expenditures is defined as the sum of payments for capital expenditures and cloud technology implementation expenditures. The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of net debt to Adjusted EBITDA leverage are presented in the tables appearing below, where practicable. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting Adjusted EBITDA and Adjusted EPS aids in making period-to-period comparisons, assessing the performance of the Company's business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or that are not meaningful indicators of actual and estimated operating performance. The Company believes that providing the adjusted effective tax rate gives investors a meaningful, consistent comparison of the Company's effective tax rate on ongoing operations. The inclusion of free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net debt to Adjusted EBITDA leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company's capital structure and changes to its capital structure over time. The Company believes that providing capital and cloud implementation expenditures provides investors with better visibility into the Company's total investment expenditures. The components of capital and cloud implementation expenditures for fiscal 2025 will be primarily dependent on the nature of certain contracts to be executed. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company's operating performance during fiscal 2025 to the comparable periods in fiscal 2024 and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies. (1) Fiscal 2025 primarily includes a $24 million non-cash asset impairment charge related to a distribution center in our East region. Fiscal 2024 primarily includes a $21 million non-cash asset impairment charge related to one of our corporate-owned office locations and a $7 million non-cash asset impairment charge related to the decision to close certain retail store locations. (2) Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, and third-party professional service fees related to the board-led financial review and strategic initiatives, all of which are included within Operating expenses in the Condensed Consolidated Statements of Operations. (3) Fiscal 2025 primarily reflects certain estimated accrued legal-related costs, which are included within Operating expenses in the Condensed Consolidated Statements of Operations. Fiscal 2024 primarily reflects third-party professional service fees related to shareholder negotiations, which are included within Operating expenses in the Condensed Consolidated Statements of Operations. Expand (1) Fiscal 2024 primarily reflects costs associated with certain employee severance. (2) Fiscal 2024 primarily includes a $21 million non-cash asset impairment charge related to one of our corporate-owned office locations in the first quarter of fiscal 2024, a $7 million non-cash asset impairment charge related to the decision to close certain retail store locations in the third quarter of fiscal 2024, a $15 million non-cash impairment charge related to the decision to close certain leased and owned distribution center locations in the fourth quarter of fiscal 2024 and $21 million in losses on the sales of receivables under the accounts receivable monetization program. (3) Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, and third-party professional service fees related to the board-led financial review in fiscal 2024, all of which are included within Operating expenses in the Consolidated Statements of Operations. (4) Primarily reflects third-party professional service fees related to shareholder negotiations in the first quarter of fiscal 2024. (5) Adjusted EBITDA includes an estimated $10 million benefit from the additional 53rd week in fiscal 2024. Expand (1) Fiscal 2024 primarily reflects costs associated with certain employee severance. (2) Loss on sale of assets and other asset charges, as reflected here, does not include losses on sales of receivables under the accounts receivable monetization program, which are included in Loss on sale of assets and other asset charges on the Consolidated Statements of Operations and are not adjusted in the calculation of Adjusted EPS. Fiscal 2024 primarily includes a $21 million non-cash asset impairment charge related to one of our corporate-owned office locations in the first quarter of fiscal 2024, a $7 million non-cash asset impairment charge related to the decision to close certain retail store locations in the third quarter of fiscal 2024 and a $15 million non-cash impairment charge related to the decision to close certain leased and owned distribution center locations in the fourth quarter of fiscal 2024. (3) Reflects surplus, non-operating property depreciation and interest expense. (4) Reflects costs associated with business transformation initiatives, primarily including third-party consulting costs and licensing costs, and third-party professional service fees related to the board-led financial review in fiscal 2024, all of which are included within Operating expenses in the Consolidated Statements of Operations. (5) Primarily reflects third-party professional service fees related to shareholder negotiations in the first quarter of fiscal 2024. (6) Represents the tax effect of the pre-tax adjustments using an adjusted effective tax rate. The adjusted effective tax rate is calculated based on adjusted net income before tax, and its impact reflects the exclusion of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. The Company believes using this adjusted effective tax rate will provide better consistency across the interim reporting periods since each of these discrete items can cause volatility in the GAAP tax rate that is not indicative of the true operations of the Company. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company's effective tax rate on ongoing operations. Expand (1) Cloud technology implementation expenditures are included in operating activities in the Consolidated Statements of Cash Flows. (2) Certain amounts in fiscal 2024 have been reclassified from Cloud technology implementation expenditures to Payments for capital expenditures. These reclassifications had no impact on total Capital and cloud implementation expenditures, or on prior year reported amounts. Expand (1) Reflects changes in tax laws, uncertain tax positions, the tax impacts related to the exercise of share-based compensation awards and any prior-year deferred tax or payable adjustments. This includes prior-year Internal Revenue Service or other tax jurisdiction audit adjustments. (2) Reflects the tax impact of pre-tax adjustments that are excluded from pre-tax income when calculating Adjusted EPS. (3) Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations. (4) The Company establishes an estimated adjusted effective tax rate at the beginning of the fiscal year based on the best available information. The Company re-evaluates its estimated adjusted effective tax rate as appropriate throughout the year and adjusts for any material changes. The actual adjusted effective tax rate at the end of the fiscal year is based on actual results and accordingly may differ from the estimated adjusted effective tax rate used during the year. Expand
The Guardian
25-06-2025
- Health
- The Guardian
Scientists criticise cut in UK funding for global vaccination group
The UK has cut its funding to a leading global vaccination group by a quarter, a move that experts say will directly lead to the avoidable deaths of many thousands of children in developing countries. The Foreign Office billed the £1.25bn commitment over five years to the Global Alliance for Vaccines and Immunisation (Gavi) as a major boost to the group's work as well as to the UK's status as a developer of vaccines. A series of aid agencies praised the decision. It is a larger sum than had been feared by many in the aid world after the decision by UK government to cut its foreign aid commitment from 0.7% of national income to 0.5%, which will then fall to 0.3% in 2027. However, the amount for 2026-29 is 24% lower than the £1.65bn pledged by Boris Johnson for 2021-25 to the Geneva-based public-private organisation, which has vaccinated more than a billion children in developing countries. When inflation is taken into account, it is a 40% cut. The decision was condemned by two leading British vaccine scientists who had pushed for the UK to maintain its support for Gavi, especially in the light of massive US cuts to aid. Dr Sandy Douglas, a senior vaccinologist at Oxford University's Jenner Institute, who led efforts to scale up production of the Covid-19 vaccine, told the Guardian: 'Many thousands of children who could have lived will instead die – it's hugely disappointing to see the UK government backsliding rather than driving progress on global poverty.' A statement from the One Campaign, which works on healthier lives in Africa, said that while the £1.25bn sum would immunise 72 million children and prevent 1.1m deaths, this was 400,000 fewer lives than would have been the case under the same funding level as before. Sir Andrew Pollard, who led the development of the Oxford/AstraZeneca Covid-19 vaccine, said a study this week in the Lancet showing that stalled or falling vaccine coverage worldwide meant 'we are losing ground in our battle against the vaccine-preventable life-threatening microbes that threaten human health'. Pollard, who was speaking in a personal capacity, said: 'Gavi is the key agency in supporting global immunisation and strengthening health-system vaccine delivery – this is the time to redouble our efforts on immunisation and not reduce them. It matters for children living in those countries where Gavi supports vaccine rollout but it also matters to us, as control of global infectious disease is essential for our own health security.' The decision was announced on the same day as the US health secretary, Robert F Kennedy Jr, said Washington would not give any more money to Gavi until it had 're-earned the public trust' over vaccine safety. Kennedy's comments were made in a video address that was to be shown at the ongoing Gavi pledging summit and was leaked to Politico. The US had been expected to at least cut its funding for the alliance, which under Joe Biden was about $300m (£220m) a year. Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion Earlier on Wednesday the Gates Foundation, traditionally one of Gavi's biggest donors alongside the UK, said it would commit $1.6bn (£1.17bn) over the next five years. Announcing the UK funding, David Lammy, the foreign secretary, said: 'Gavi's global impact is undeniable. Over 1 billion children vaccinated, over 18 million lives saved, over $250bn injected into the global economy. 'I'm immensely proud of the role the UK has played in reaching these milestones. Our ongoing partnership with Gavi will give millions of children a better start, save lives and protect us all from the spread of deadly diseases.'
Forbes
24-06-2025
- Business
- Forbes
Cyberattack Reveals Soft Underbelly Of Supermarket Food Supply
The recent cyberattack on food distributor UNFI has revealed the likelihood of other data ... More vulnerabilities throughout the F&B space. While the nation's food supply faces all sorts of threats, from diseases to tariffs to climate change, we are now faced with what can happen when the food supply is attacked by hackers, and not by directly targeting stores' systems. Instead, a hack of food distributor United Natural Foods (UNFI) hit Whole Foods and others hard, leading to shortages and empty shelves. It exposed the soft underbelly of supermarkets, where software, not just hard goods shortages, can be the target of attacks. Providence, Rhode Island-based UNFI, which operates 52 food distribution centers and offers 250,000 products from more than 11,000 suppliers to 30,000 customer locations, reported "unauthorized activity in our systems." It shut down temporarily after the cyberattack revealed that a computer virus, like any disease, can put the nation's food supply and supermarkets at risk. This disrupted ordering and deliveries, revealing how vulnerable the nation's food infrastructure can still be to cyberattacks. 'Our frozen cooler is empty, our bread hearth is bare, and customers are increasingly upset," a Whole Foods employee in Arkansas who was not authorized to speak on behalf of the company told CNN. UNFI, which noted it has invested in cybersecurity, said this attack revealed vulnerabilities and the need to do more, even as its stock tumbled after the attack. Signs that read, 'We are experiencing a temporary out-of-stock issue for some products' went up in some supermarkets. 'I think a company needs to be both high capability and humble when it relates to cybersecurity,' UNFI CEO Sandy Douglas said. 'And this event is just a demonstrated example of why.' Some supermarkets shifted temporarily to other wholesalers, while Amazon-owned Whole Foods, which operates more than 520 stores in the United States, found some of its shelves temporarily empty. Grocery Dive quoted Gilpin Matthews, co-owner of Darlings Grocery in La Pointe, Wisconsin, as saying that he shifted to Minnesota-based grocery wholesaler Mason Brothers for some products, as well as Sysco, which supplies restaurants. 'Empty shelves don't look good, and if people go in and they can't get the things that they need… they're going to go somewhere else,' Matthews told Grocery Dive. 'We were just scrambling, because we had no notice.' UNFI President and CFO Giorgio Matteo Tarditi said in a Securities and Exchange Commission (SEC) filing that the cyberattack 'temporarily impacted the company's ability to fulfill and distribute customer orders.' While some supermarkets found their shelves empty after the cyberattack, others temporarily shifted ... More to other wholesalers. While this attack attracted attention, it came after a string of ransomware and extortion hacks of retailers and supermarkets in the United Kingdom in April, which were widely attributed to the cybercrime organization Scattered Spider. That group with global reach reportedly began focusing on the United States in May, possibly including the UNFI cyberattack. The Rise & Risk of Advanced Technology The latest attack raises issues such as resilience, redundancy, and preparedness of grocery stores, which rely heavily on logistics, delivery, and the technology that allows this to go smoothly. In today's highly competitive market, food and beverage distributors increasingly rely on advanced technology to streamline operations, optimize supply chains, and deliver outstanding customer service. From real-time inventory tracking to predictive ordering and route optimization, nearly every aspect of the modern distribution business is powered by data. As the value and sensitivity of this data grows, so does the importance of securing and protecting it. Technology has become the backbone of food and beverage distribution for distributors who now utilize sophisticated Enterprise Resource Planning (ERP) systems, warehouse management solutions, and Internet of Things (IoT) devices to gather and analyze data at every stage — from procurement to delivery. Advanced technology has helped wholesalers optimize their supply chain and monitor inventory in ... More real-time. These technologies generate a wealth of information on inventory levels, customer orders, supply chain logistics, and regulatory compliance. For instance, real-time temperature and humidity sensors can track perishable goods in transit, while analytics platforms help forecast demand and reduce waste. The resulting data not only drives efficiency but also provides actionable insights that can enhance profitability and customer satisfaction. Single Suppliers or Dozens of Distributors? Relying on single suppliers, which can provide the best rates, also aggregates risk. According to Grocery Dive, Orcas Food Co-op, a UNFI customer in Eastsound, Washington, also obtains products from dozens of local suppliers. 'We're not overly reliant on a single supplier,' an Orcas Food Co-op spokesman told Grocery Dive. 'This is just a good chance to highlight to our members a lot of the other producers we work with directly.' Still, smaller suppliers indicated they were unaware of what was occurring and caught in the middle. By June 10, UNFI reported in a third-quarter earnings call that net sales had increased 7.5% to $8.1 billion and a $7 million net loss. 'In the near term, we are focused on diligently managing through the cyber incident we announced yesterday to rapidly and safely restore our capabilities,' CEO Sandy Douglas said, 'while helping our customers with short-term solutions wherever possible.' Stronger cybersecurity measures and the implementation of penetration testing can help companies be ... More more proactive about the safety of their data. UNFI, whose slogan is 'Better Foods. Better Future.' may face lawsuits in case the company is in any way culpable. Law firm Levi & Korsinsky said it is investigating UNFI to see if federal securities laws were violated. UNFI disclosed in a June 9 SEC filing that after becoming aware of unauthorized activity in its systems, it "promptly activated its incident response plan and implemented containment measures, including proactively taking certain systems offline, which has temporarily impacted the Company's ability to fulfill and distribute customer orders." Craving More Cyber Controls This recent attack demonstrates the need for tighter cybersecurity controls, while many companies have not even had a penetration assessment. Having redundancy with suppliers is also another mitigating factor. Finally, proper insurance coverage may ease the pain. Every company should take proactive and meaningful measures to avoid cyberattacks, or it could face the problems illustrated in this situation. With increased reliance on digital tools comes an increased risk of cyberattacks, data breaches, and system disruptions. Food and beverage distributors often handle sensitive information, such as proprietary recipes, supplier contracts, payment details, and customer data. A security breach could disrupt business operations, damage trust, and lead to regulatory penalties. Therefore, data security has become a top priority. Distributors are adopting multi-layered cybersecurity strategies, including data encryption in transit and at rest, regular security audits, and robust access controls. Diseases, tariffs, climate change, and now hackers, all pose a threat to the nation's food supply. Cloud service providers used by distributors are often required to comply with industry-standard certifications (such as ISO 27001 or SOC 2) to ensure the integrity and confidentiality of stored data. The nature of the food and beverage industry often involves complex supply chains with multiple partners and vendors. As technology continues to evolve, so will the ways food and beverage distributors use —and protect — data. Artificial intelligence and machine learning are poised to bring even more advanced analytics and automation to the industry, underscoring the need for robust data security frameworks. In summary, technology and data are critical drivers for food and beverage distribution success. Still, their full potential can only be realized if distributors prioritize data security and protection at every level. By taking a proactive approach, these businesses can safeguard their operations, build trust, and deliver greater value to their partners and customers.
Yahoo
13-06-2025
- Business
- Yahoo
Whole Foods' distributor supplying stores on 'limited basis' after cyberattack
Whole Foods and other U.S. grocers are only being partially stocked as a major food distributor continues to grapple with a recent cyber attack, a recent earnings call revealed. North American wholesale distributor United Natural Foods confirmed this week that it was forced to take some of its systems offline after noticing unauthorized activity. At a financial quarter meeting Tuesday, June 10, CEO Sandy Douglas said the wholesale distributor is only supplying customers on a "limited basis" amid the crisis. "We are partnering with customers across the country and across our formats in various short term mode to serve their needs as best as we possibly can," Douglas told investors. "Any way that we can help them meet their needs, we're doing." The company is working with the FBI and other authorities to determine how to resume services and why the technology defenses failed, according to Douglas. "We just got penetrated, so we will be continuing to look at every aspect of our defense, every aspect of how our tools are working, and what may be necessary to bolster it going forward, because it's clearly an area that requires a tremendous amount of focus from companies today," he said. Users on social media have reported shelves being empty at some Whole Foods locations with signs apologizing for the inconvenience and promising to resupply soon. A Whole Foods spokesperson told USA TODAY on Monday, June 9 that the supermarket chain is working to restock its shelves as fast as possible and said it apologizes for any inconveniences. When asked why the company hesitated to inform investors about the cyberattack and system shutdown, Douglas denied there being a delay. Douglas clarified company officials noticed unauthorized activity in its systems on June 5 and investigated whether it was isolated. By the afternoon of June 6, the company made the decision to lock its systems down. On June 9, it filed a Form 8-K with the Securities and Exchange Commission (SEC) to inform shareholders before the market opened. "So there is no way that we could have communicated any faster, and there was no trading," Douglas added. He also he was unable to confirm whether the shutdown has required customers to break contracts, adding "I wouldn't be able to factually answer that question, even if I was inclined to disclose it." "The focus is making sure we serve the customers and have them be able to do whatever they need to do the best they can in this environment," he said. This article originally appeared on USA TODAY: Why Whole Foods' distributor is supplying on a 'limited basis' Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
Cyberattack cripples Whole Foods distributor, leaving shelves bare
June 12 (UPI) -- A cyberattack has crippled distribution channels for one of the nation's top organic food distributors, leading to empty shelves at grocery stores nationwide. Rhode-Island-based United Natural Foods Inc., a major supplier to Whole Foods, became aware of the attack on June 5th, a filing with the Securities and Exchange Commission said. UNFI said the breach affected its ability to fulfill customer orders. "It's affecting operations in a very, very significant way," an employee at a Sacramento Whole Foods told NBC News. "Shelves don't even have products in some places. The shipments we receive are not what we need, or we did need it but it's too much of one product because UNFI can't communicate with stores to get proper orders." A spokesperson for Whole Foods apologized and said the company is working to restock the shelves as quickly as it can. In a statement, UNFI acknowledged the ransomware attack. "We have identified unauthorized activity in our systems and have proactively taken some systems offline while we investigate," UNFI said in the statement. "As soon as we discovered the activity, an investigation was initiated with the help of leading forensics experts and we have notified law enforcement. We are assessing the unauthorized activity and working to restore our systems to safely barring them back online." UNFI said it is working closely to keep its customers updated amid the confusion and distribution disruptions. At a quarterly earnings meeting Tuesday, UNFI CEO Sandy Douglas told investors that it is supplying customers on a "limited basis." "We are partnering with customers across the country and across our formats in various short term modes to serve their needs as best we possibly can," he said. "Any way that we can help them with their needs, we're doing." Douglas said the company is working with the FBI and other authorities to track the source of the breach and why UNFI's security systems failed. The UNFI security breach comes amid a series of cyberattacks on retailers in recent weeks that have crippled the operations of several high profile retailers with ransomware.
