A ransomware attack has temporarily shut down U.S. production at Fairlife, the dairy company owned by The Coca-Cola Co., disrupting operations for one of the fastest-growing milk brands in the country.
According to a filing with the U.S. Securities and Exchange Commission, Fairlife identified unauthorized access to part of its computer systems, including production-related systems, in connection with a ransomware attack. The incident prompted the company to suspend production at its U.S. facilities while it investigates and restores affected systems.
Atlanta News First reported that Fairlife’s U.S. operations have been temporarily paused, while Canadian production continues uninterrupted.
Fairlife notified law enforcement and launched an investigation into the cybersecurity incident.
“The full scope, nature and impacts of the incident are not yet known,” Coca-Cola said in a statement reported by Atlanta News First.
The company also emphasized that “product quality and safety have not been impacted.”
Production remains paused while the company works to recover its systems.
“The company is working diligently to complete the investigation and restore the systems and impacted operations,” Coca-Cola said.
The company has not announced when U.S. production will resume.
According to Inc., Fairlife has become one of Coca-Cola’s fastest-growing businesses since the beverage company acquired full ownership of the brand in 2020. Inc. reported that Coca-Cola CEO James Quincey said Fairlife’s retail value has grown from about $10 million in 2014 to nearly $4 billion last year.
Cybersecurity experts told Inc. that food and beverage manufacturers have increasingly become attractive ransomware targets because of the potential for widespread supply chain disruptions.
“Food and beverage manufacturers are becoming some of the more attractive ransomware targets because they sit at the intersection of critical infrastructure and downstream impact,” Gabrielle Hempel, division chief of cybersecurity education and awareness at the United States Coast Guard Auxiliary, told Inc.
“If you stop producing beverages, dairy, or food for even just a few days, there are massive supply chain, retailer, inventory, and revenue disruptions,” she added.
Inc. also reported that recovering production systems after a ransomware attack can be significantly more complicated than restoring standard office computer networks because manufacturing equipment and industrial control systems often require extensive validation before restarting operations.
Potential supply disruptions
While Coca-Cola has not indicated whether consumers should expect shortages, Techlicious reported that any Fairlife products currently on store shelves remain safe because the company said product quality has not been affected. The publication also noted that Canadian production continues to operate, meaning some products may still reach U.S. retailers from those facilities.
It remains unclear whether any customer or company data were compromised or whether the attackers made a ransom demand. Coca-Cola has not disclosed additional details as the investigation continues.
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