United Natural Foods Expects $400M Revenue Impact from June Cyber Attack

United Natural Foods Projects (UNFI), the largest publicly traded wholesale distributor of health and specialty food in the United States and Canada, has revealed that a devastating cyberattack in June will have a significant impact on its fiscal 2025 sales. The company expects a staggering $350–$400M sales hit, with an additional $50–$60M in net income loss.

UNFI is a Providence, Rhode Island-based natural and organic food company that supplies over a third of Whole Foods Market's revenue. In June 2025, the company suffered a cyberattack that disrupted its systems, causing product shortages at Whole Foods stores nationwide. The attack temporarily hindered UNFI's ability to fulfill and distribute customer orders, resulting in "temporary disruptions" to its operations.

The company declined to disclose details about the attack, but experts suggest that similar disruptions have often been linked to ransomware attacks. In response, a corporate Whole Foods spokesperson apologized for the inconvenience, stating that the company is working diligently to restock shelves quickly. However, they refused to answer specific questions about the incident.

Employees at various Whole Foods locations reported significant shortages, with one employee in Sacramento stating, "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 Whole Foods employee in North Carolina also reported bread and supply shortages due to the cyberattack. Experts warn that cyberattacks can disrupt complex food supply chains, delaying deliveries to customers.

The Impact Beyond Whole Foods

The impact of the UNFI cyberattack has extended beyond Whole Foods, affecting smaller retailers as well. The Community Food Co-Op in Bellingham, Washington, informed customers that due to UNFI being its main supplier, some shelves may appear bare.

Insurance Payouts and Recovery

UNFI published an update revealing that insurance payouts will cover much of the financial damage. 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.

Recovery Timeline Uncertain

Experts note that restoring systems will take time, but UNFI did not provide a clear recovery timeline. The company expects insurance to cover most of the financial damage and does not anticipate major impacts beyond Q4 of fiscal 2025.

Conclusion

The cyberattack on United Natural Foods has had far-reaching consequences for the food industry, affecting both larger retailers like Whole Foods and smaller suppliers. As experts warn about the risks of complex supply chains, UNFI's recovery will be closely watched by investors and consumers alike.