Girl Scouts San Diego sued Ferrero U.S.A. and its subsidiary Little Brownie Bakers in March 2026, alleging the company walked away from a four-year fixed-price cookie supply contract and cost the council more than $1.1 million in lost revenue. The Girl Scouts San Diego Ferrero lawsuit was filed in the U.S. District Court for the Southern District of California and centers on a May 2021 agreement that Ferrero allegedly voided ahead of the 2025 cookie season after the council refused a 22% price increase.1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million
What the Contract Said and How It Broke Down
The council, which serves more than 23,000 members across San Diego and Imperial counties, signed a four-year fixed-price deal with Little Brownie Bakers in May 2021.1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million According to the complaint, Little Brownie Bakers tried to invoke a force majeure clause in 2024, citing “hyperinflation of cocoa” prices, and demanded a 22% increase for the final year. When the council refused, Ferrero allegedly voided the contract’s last year altogether.
Girl Scouts San Diego argues the contract expressly placed commodity price risk on the baker and that Little Brownie Bakers “failed to hedge against foreseeable price increases.”1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million Cocoa prices did climb sharply in that window, passing $12,000 per metric ton by the end of 2024 amid a global production shortage.2J.P. Morgan. Cocoa Prices The council’s position is that volatility of that kind was foreseeable and contractually assigned to the baker.
What It Cost the Council
Cookie sales generate more than 70% of Girl Scouts San Diego’s revenue, so losing its baker was not a minor logistical problem.1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million The council made an emergency transition to ABC Bakers for the 2025 season, which opened on January 26, 2025.3Girl Scouts San Diego. Girl Scouts San Diego Announces New Partnership With ABC Bakers
Sales dropped from 2.3 million packages in 2024 to 2.1 million in 2025, and net revenue fell from $8.3 million to roughly $7.2 million.1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million The council eliminated 25 positions, including 15 layoffs and 10 unfilled roles.4Times of San Diego. Girl Scouts San Diego Ferrero Contract Lawsuit Donations through Operation Thin Mint, which sends cookies to military service members, fell by 21,000 packages.5FOX 5 San Diego. Girl Scouts San Diego Lawsuit
CEO Carol Dedrich said the council “had an agreement in place through 2025 that the multinational corporation canceled without warning when they decided that the bottom line was more important than the promises it made to an organization dedicated to building the leaders of tomorrow.”6FOX 5 San Diego. Girl Scout Cookie Deadline Dedrich said the shortfall directly limited funding for STEM activities, outdoor programs, and community service work.4Times of San Diego. Girl Scouts San Diego Ferrero Contract Lawsuit
Where the Case Stands
The council filed suit on March 3, 2026, after roughly two years of unsuccessful negotiations.4Times of San Diego. Girl Scouts San Diego Ferrero Contract Lawsuit The case is Girl Scouts, San Diego-Imperial Council, Inc. v. Ferrero U.S.A., Inc., No. 3:26-cv-01348, before Judge Anthony J. Battaglia and Magistrate Judge Brian J. White.7PACER Monitor. Girl Scouts v. Ferrero USA, Inc.
Girl Scouts San Diego is represented pro bono by three firms: Haeggquist & Eck, led by managing partner Alreen Haeggquist; Rosing Pott & Strohbehn, led by Heather Rosing; and Jones Day, with attorneys Hannah O’Hara and Edward P. Swan Jr.7PACER Monitor. Girl Scouts v. Ferrero USA, Inc. Dedrich said the choice to sue reflected the organization’s own teaching: “Because we teach girls the importance of integrity and business ethics, we were left with no other choice but to formally file a lawsuit.”8Corp Magazine. San Diego Girl Scouts Sue Ferrero Over Contract Terms
Ferrero has declined to comment publicly, citing the ongoing litigation.1San Diego Union-Tribune. Girl Scouts San Diego Sues Snack Food Giant, Alleges Cookie Contract Breach Cost Council $1.1 Million The company has requested multiple extensions to answer the complaint. On May 8, 2026, Judge Battaglia granted a final extension, setting July 8, 2026, as the deadline for all responsive pleadings.7PACER Monitor. Girl Scouts v. Ferrero USA, Inc. No motions to dismiss or settlement talks have been publicly reported. Ferrero’s answer, once filed, will show whether it intends to defend the force majeure position.
Why Ferrero Is the Defendant
Little Brownie Bakers is one of only two companies licensed by Girl Scouts of the USA to produce Girl Scout cookies; the other is ABC Bakers. Each of the 111 local councils contracts independently with one baker, typically reviewing the relationship every three to four years.9Girl Scouts of the USA. Cookie FAQ Ferrero acquired Little Brownie Bakers as part of a $1.3 billion purchase of Kellogg Company’s cookie, fruit snack, ice cream cone, and pie crust businesses, completed on July 29, 2019. That package also included Keebler and Famous Amos.10Baking Business. Ferrero Completes Acquisition of Kellogg’s Cookie Businesses