Girl Scouts San Diego has hauled Ferrero U.S.A. and its Little Brownie Bakers unit into federal court, accusing the snack giant of blowing up the final year of a fixed-price cookie contract and sticking the local council with more than $1.1 million in losses. The lawsuit, filed Wednesday, claims Ferrero voided the last year of a four-year deal, hit the council with a sudden price hike, and forced an emergency switch to a less favorable baker, all of which allegedly gutted revenue that pays for most of the council’s programs and helped trigger staff cuts.
According to the complaint, troops in San Diego and Imperial counties sold about 2.1 million packages of cookies in 2025 for roughly $7.2 million in net revenue, a drop from more than 2.3 million packages and $8.3 million in net revenue the year before. The filing says the cookie program supplies more than 70% of the council’s revenue, and that the abrupt contract change cut into program funding, troop proceeds, and donated packages. It also alleges that Operation Thin Mint donations fell by more than 21,000 packages and that 25 positions were eliminated, according to The San Diego Union-Tribune.
CEO Carol Dedrich said the council tried for nearly two years to negotiate a fix before finally filing suit, arguing that Ferrero's actions took away critical girl program funding and damaged trust with volunteers. Even so, the council has told local media it remains in a solid financial position while it seeks to claw back the alleged shortfall. Ferrero declined to comment when contacted, according to FOX 5/KUSI.
The case is docketed in the U.S. District Court for the Southern District of California as Girl Scouts v. Ferrero U.S.A., Inc., No. 3:26-cv-01348. Court records list the matter as a contract dispute, with Haeggquist & Eck representing Girl Scouts San Diego and Jones Day appearing for Ferrero. The suit shows up on the Southern District pages at Pacermonitor and in coverage from Law360.
Allegations in the Complaint
The council says it inked a four-year, fixed-price agreement with Little Brownie Bakers in May 2021, locking in costs through the 2025 cookie season. According to the suit, Ferrero unlawfully voided the final year of that deal and tried to impose a price jump of roughly 22%. Faced with that move, Girl Scouts San Diego alleges it had to scramble to switch to ABC Bakers on significantly less advantageous terms, a change it says cost the council more than $1.1 million in lost revenue. The complaint seeks unspecified monetary damages and other relief for the alleged breach, citing both the filing itself and reporting from The San Diego Union-Tribune.
Legal Angle
On paper, the claim is framed as a straightforward breach of contract tied to the baker agreement. If the court agrees that Ferrero walked away from a fixed-price deal, the primary remedy would typically be money damages aimed at making the council whole. Because the case is in federal court, the parties now head into the usual rhythm of scheduling orders, discovery, and potentially early motions that could narrow or resolve the dispute. Legal trackers classify the matter as a contract fight and identify the firms on each side, while Law360 notes the court assignment and counsel on the docket.
Why It Matters Locally
For Girl Scouts San Diego, cookies are not just snack food, they are the main financial engine that keeps camps open, funds STEM programs, covers volunteer training, and pays for a long list of troop activities that would otherwise need separate fundraising. Even a small hit in per-box proceeds can ripple through local budgets, trimming activities and shrinking donation programs that send cookies to service members.
Girl Scouts materials explain that each council contracts with one of two licensed bakers, ABC Bakers or Little Brownie Bakers (a division of Ferrero), and that cookie proceeds stay in local communities to support councils and troops. That setup helps explain how a dispute with a baker at the national level can reverberate through an entire council budget. For more on how the cookie program underwrites local activities, see the Girl Scouts cookie guide.
What’s Next
The lawsuit will now work its way through the Southern District’s docket as both sides trade filings and the court sets deadlines for motions and, potentially, trial. A settlement is always possible, especially in a contract case where the claimed damages are spelled out in dollar terms, and the complaint already lays out a detailed tally of what the council says it lost. For those who like to follow the fine print, filings can be tracked through services such as Pacermonitor, where the case is listed.
