A Girl Scouts organization in California is suing a major candy company for breaking a contract and trying to force the organization into a newer, more-expensive deal.
According to the San Diego Union-Tribune, a federal lawsuit filed this week by Girl Scouts San Diego says 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, a decision the Scouts claim cost them 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 newspaper points out that 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, according to the Union-Tribune. “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 impacted our customer base.” She said Girl Scouts San Diego tried unsuccessfully to negotiate a resolution with Ferrero for nearly two years.
“Because we teach girls the importance of integrity and business ethics, we were left with no other choice but to formally file a lawsuit,” she said. A spokesperson for Ferrero declined to respond to the lawsuit’s allegations, saying the company does not comment on ongoing litigation, the newspaper reported.
