Molson Coors Beverage Company (Molson Coors) recently disclosed that it suffered a cyberattack that forced its beer production to come to a screeching halt...
Molson Coors Cyberattack Results in Systems Outage
Molson Coors disclosed the cyberattack in a filing with the US Securities and Exchange Commission (SEC). According to the 8-K filing, the incident, which caused a “systems outage,” occurred on March 11, 2021. In the wake of the cyberattack, Molson Coors “engaged leading forensic information technology firms and legal counsel to assist the Company’s investigation into the incident,” the filing stated.
“The company is working around the clock to get its systems back up as quickly as possible,” the company said in its filing. “Although the company is actively managing this cybersecurity incident, it has caused and may continue to cause a delay or disruption to parts of the company’s business, including its brewery operations, production and shipments.”
Food and Beverage Industry Has Unique Cyber Risks
As we have discussed in prior articles, cybercrime has increased dramatically during the COVID-19 pandemic, impacting businesses in all sectors. The food and beverage industry is no exception—Brown-Forman, which owns Jack Daniel’s; Lion, an Australian alcoholic beverage company; and Italy’s Licya Campari Group all fell victim in the past year.
Ransomware attacks are becoming increasingly common in the food and beverage industry as cybercriminals discover they can score large paydays by disrupting the critical business operations of large industrial companies. While Molson Coors has not yet disclosed the nature of its cyber incident, many security experts suspect it fell victim to ransomware.
According to a recent report by Claroty, an industrial cybersecurity company, the food and agriculture sector experienced a fifty-six percent (56%) increase in industrial control system (ICS) vulnerabilities from 2019 to 2020. “Given the round-the-clock nature of operations in food and beverage companies, much of the IT equipment in manufacturing plants can’t be patched frequently, making these assets a prime target for attacks such as ransomware, which can seize up operations abruptly with a dramatic cost to the enterprise,” Grant Geyer, Claroty’s Chief Product Officer, told Industry Week.
As cyber risks increase, continuous threat monitoring of all IT systems is essential. Businesses should also ensure that operating systems, software, and firmware are patched as soon as manufacturers release updates. Employees can also play a critical role in combatting cyberattacks, often thwarting an attack before it takes down your systems. However, as ransomware attacks become more sophisticated, workers need to be trained on the latest threats. For instance, while ransomware attacks initially relied on email messages that were clearly identifiable as spam, hackers are now using phishing schemes that make emails appear to come from a known contact.
With prevention as the goal, businesses should also plan for an inevitable attack. Because it can take time to recover from a cyberattack and restore normal operations, it’s important to plan for the possibility of critical information systems being inaccessible for an extended period of time. Creating, maintaining, and exercising a basic cyber incident response plan can help businesses recover more quickly, as everyone involved knows their role and can immediately start to “work the plan” to regain normal business operations.
Business continuity plans are also invaluable. While many plans address how to continue critical business operations in the face of a flood, power disruption, or other disaster, cyberattacks are not always addressed. A good starting point is to determine all the potential threats to your business operations posed by a cyberattack, rank the severity of each business disruption, and devise a plan to address each risk.
Key Takeaway
As Molson Coors learned the hard way, a cyberattack can significantly disrupt production and distribution. Since it is not always possible to thwart an attack, it is essential to have policies and procedures in place to get systems back up and running as quickly as possible. Food and beverage companies should use this latest incident as motivation to thoroughly review their cybersecurity and business continuity plans to ensure they address current and emerging risks.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Corey LaBrutto, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
