Girl Scouts San Diego is suing Ferrero U.S.A., and its subsidiary, Little Brownie Bakers (LBB), accusing the firms of violating contract terms and leaving the nonprofit short of funds.
Ferrero acted as the baker for the Girl Scouts, producing the popular boxes of cookies that go on sale early each year to raise funds for the organization.
In the suit, filed Tuesday in federal court, officials accused the company of “abruptly” terminating its contract with the organization in 2024, a year before it was set to expire, and deciding “that the bottom line was more important than the promises it made to an organization dedicated to building the leaders of tomorrow,” said Carol Dedrich, CEO of Girl Scouts San Diego.
“Their actions took away critical girl program funding, diminished trust with our volunteers, and negatively impacted our customer base,” Dedrich said in a news release.
According to Girl Scouts San Diego, the organization had to trim 25 jobs even as officials quickly pivoted to find a new baker. The change, they allege, led to lost revenue, reduced earnings for scout troops and 21,000 fewer packages delivered to military members through Operation Thin Mint.
Dedrich called the resulting confusion among consumers “immediate and widespread.” The loss in funds, she said “directly limited the troops and Girl Scouts San Diego’s ability to fund outdoor enrichment programs, STEM activities, outreach programs, community service projects, cultural empowerment experiences, and other impactful leadership initiatives.”
Girls Scouts San Diego, Dedrich said, has tried for nearly two years to negotiate a resolution with Ferrero, which has corporate offices in New Jersey, but could not come to an agreement.
Ferrero’s commercial brands include Keebler cookies, Nutella and several candy bars, Nestle Crunch and Baby Ruth among them.
“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.
Ferrero officials did not return calls seeking comment.
Five attorneys from three firms have taken on Girl Scouts San Diego’s case on a pro bono basis.
The group offers year-round activities and volunteer training for nearly 24,000 girls and adults in San Diego and Imperial counties.
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