Girl Scouts San Diego sues snack food giant, alleges cookie contract breach cost council $1.1 million

A federal lawsuit filed Tuesday by Girl Scouts San Diego alleges that Ferrero U.S.A., a massive multinational corporation whose subsidiary bakes Girl Scout cookies, broke a contract with the local Girl Scouts in 2024, throwing the nonprofit organization’s local council into a crisis that led to more than $1.1 million in lost revenue and the elimination of 25 jobs.

The lawsuit alleges that Ferrero — which owns dozens of candy, cereal and snack brands such as Keebler, Blue Bunny, Famous Amos, Butterfinger and Kellogg’s cereals — unlawfully voided the final year of a fixed-priced, four-year contract and tried to force Girl Scouts San Diego into a new contract with a 22% price increase.

The suit alleges that the lost revenue was particularly damaging, given that the cookie program is the source of more than 70% of revenue for Girl Scouts San Diego.

“This action arises because a global confectionery giant decided that its bottom line mattered more than keeping its promises,” the lawsuit alleges. “The consequences for Girl Scouts were devastating: a forced emergency transition to a new baker, over $1.1 million in lost revenue, reduced earnings for the troops of young women the organization serves … and the elimination of twenty-five employees due to the lost revenue.”

Carol Dedrich, CEO of Girl Scouts San Diego, said in a statement that Ferrero’s actions “took away critical girl program funding, diminished trust with our volunteers, and negatively imp...