Cyber Adobe Stock 209412192

Maple Leaf Foods’ Late-2022 Cyber Incident Cost ‘at Least’ $23 Million

July 19, 2023
The company’s recently released annual report says Maple Leaf maintained operations throughout the event, but “normal business activities were interrupted.”

In its recently released 2022 annual report, Canada’s Maple Leaf Foods said the cost of the widely reported Nov. 6, 2022, cyber incident “was at least $23 million.” Although there were business interruptions, “the company was able to maintain operations throughout the event.”

“Unfortunately, this incident had a much larger impact on our performance than we originally anticipated, despite the remarkable work our team did to continue with manual operations during the outage as we meticulously restored our systems,” Executive Chair and CEO Michael McCain wrote in the introduction to the annual report.

Later in the report, the company confirmed that it experienced a system outage stemming from the cyberattack. “Upon learning of the incident, Maple Leaf Foods took immediate action and engaged cybersecurity and recovery experts. The company executed its business continuity plans as it restored the impacted systems and worked with customers and suppliers to minimize service disruptions. While the company was able to maintain operations throughout the event, normal business activities were interrupted.”

The $23 million in special charges were taken during Maple Leaf’s fourth quarter. Previously, the company had not quantified the cost of the incident.

“Cybersecurity is an issue in which we have made a considerable investment and that we take very seriously,” the report continued. “Coming out of the cybersecurity incident, we are adding on to our investment and accelerating our work. We are, accordingly, updating our materiality assessment.”

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

Sponsored Recommendations

F&B Manufacturer Implements Powerful Cybersecurity

A leading F&B manufacturer has moved to harness the skills of Rockwell Automation and Claroty to harden their OT and IT defences.

6 Ways to Augment Your Food and Beverage Workforce

Modern digital tools and technologies help attract, retain and empower a modern workforce.

2024 Manufacturing Trends - Unpacking AI, Workforce, and Cybersecurity

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

Better OT Asset Management Increases Uptime

A food and beverage company streamlines and simplifies its OT cybersecurity to increase system reliability and uptime.