In May, more than 7,000 professionals from the food and beverage industry are expected to gather in Bilbao, Spain for F4F Expo Foodtech. While there, senior representatives from major food and beverage manufacturers and retailers will discuss a variety of topics impacting the industry, spanning production, manufacturing and delivery. As Rogelio Pozo, CEO of AZTI and director of Food 4 Future World Summit, explains, “Technologies such as automation, robotics, Artificial Intelligence, the Digital Twin or cybersecurity, among others, are transforming the entire value chain of the food industry.” Digitization is welcoming in a new era for the industry offering benefits including efficiency and sustainability. At the same time, it is bringing in a greater emphasis on cybersecurity.
Cyber Risk Facing the Food and Beverage Industry
To further understand the growing significance of cybersecurity in the food and beverage industry, look no further than Dole-made salad kits. Shoppers may have noticed a shortage in the popular grocery item in February. The reason for this disappearance was a ransomware attack. According to CNN Business, Dole confirmed that it was hit by a cyber incident causing it to shut down North American systems. Although the timeframe of this case was not clarified, it is clear that it had an impact.
Dole isn’t alone in facing this issue. You’ll remember that large-scale food production company JBS underwent a major ransomware attack in 2021. This all aligns with a report recently published on the state of ICS/OT cybersecurity in 2022 concluding that ransomware attacks are rising sharply. In covering the report, Security Week noted that there were around 600 incidents against industrial organizations. The food and beverage industry ranked second for the number of attacks experienced.
Food and Beverage Cybersecurity Is Now a Compliance Requirement
Australia’s Security Legislation Amendment (Critical Infrastructure Protection) Act 2022 extends critical infrastructure security requirements to food and beverage organizations, according to Food & Drink Business. Producers in that market should check which facilities the amended definitions now cover. Spending is following the same line. Deloitte surveyed consumer products executives and found 40% planning significant investment in consumer data privacy and cybersecurity in 2022. John S. Forrester covered the numbers in Powder & Bulk Solids.
Beyond those cases, one dairy company had to take plants offline after a ransomware attack, and the outcome stayed contained, with short-term delays in product delivery. Several other large manufacturers in the sector have publicly dealt with the effects of being cyber targets. A voluntary shutdown of one infant formula facility over a product quality problem, with no cyberattack involved, triggered a national shortage. Plant leaders can ask how long one line could sit idle before customers notice.
Improvement starts at the root of industrial design, which matters more as systems are combined for efficiency. Training belongs in the same work, since letting employees learn the threat picture and the practices to follow builds cybersecurity into company culture. Teams weighing where to start can review the DYNICS OT cybersecurity overview.
Investing in Food and Beverage Cybersecurity
In an industry that is already plagued by supply chain issues, labor shortages, etc., you don’t want a detrimental cyber breach to be on that list. As Food Engineering reports, IBM estimates that a ransomware attack can cost an organization up to $4.54 million.
On top of that, Sean Lyngaas writes for CNN Business that “Ransomware is not the only digital scam that has hit the food sector.” In December, the FBI and other federal agencies issued another warning regarding a case in which cybercriminals were able to place “fraudulent” orders for milk products, allowing them to steal a hefty sum in shipments.
Considering all the risk that cyber threats pose to business operations, it is essential that cybersecurity is treated as a main strategic element throughout food and beverage manufacturing in 2023 and beyond. With our suite of cybersecurity solutions, DYNICS offers the tools that you need to protect the plant floors and production settings serving as the backbone of your distribution services. From advanced perimeter security via the ICS360.Defender to network security and visibility with OT Network Controller, we cover the variety of areas needing protection from cyber vulnerabilities. Reach out to our team to learn more about how we can help you integrate the right security ingredients for your food and beverage industrial setting.
Sources
- “Coca-Cola, Häagen-Dazs, and Sainsbury’s Will Present Their Digitalization and Open Innovation Strategies at F4F – Expo Foodtech” – Food Industry Executive
https://foodindustryexecutive.com/2023/02/coca-cola-haagen-dazs-and-sainsburys-will-present-their-digitalization-and-open-innovation-strategies-at-f4f-expo-foodtech/ - “Cyberattack on food giant Dole temporarily shuts down North America production, company memo says” – Sean Lyngaas, CNN Business
https://www.cnn.com/2023/02/22/business/dole-cyberattack/index.html - “2022 ICS Attacks: Fewer-Than-Expected on US Energy Sector, But Ransomware Surged” – Eduard Kovacs, Security Week
https://www.securityweek.com/2022-ics-attacks-fewer-than-expected-on-us-energy-sector-but-ransomware-surged/ - “Why Cybersecurity is a Major Concern for Food Firms in 2022” – John S. Forrester, Powder & Bulk Solids
https://www.powderbulksolids.com/food-beverage/why-cybersecurity-major-concern-food-firms-2022 - “Food and beverage: still a prime target” – Lani Refiti, Food & Drink Business
https://www.foodanddrinkbusiness.com.au/news/food-and-beverage-still-a-prime-target - “Protecting Your Food Processing Business in 2023: Risk and Cost Trends” – Chris Palmer, Food Engineering
https://www.foodengineeringmag.com/articles/100902-protecting-your-food-processing-business-in-2023-risk-and-cost-trends
