Author: Mitali Srinath
Graphics: Business Review at Berkeley
The Girl Scouts, through innovations like the Digital Cookie app, drive-through booths, and diversity initiatives, have weathered pandemic disruptions and social controversies to remain a leading organization that empowers young women while sustaining their iconic cookie tradition.
Introduction
Girl Scout cookies are more than just a delightful snack: they are a cultural phenomenon. Not only do they provide children and adults alike with sugary satisfaction, but they have also established themselves as an indispensable part of the American food culture. Every year, when the cookie-selling season kicks off, communities eagerly wait to purchase boxes of their favorite snacks, from Samoas to Thin Mints to Caramel DeLites. This 100-year-old program not only introduces the public to tasty treats but also plays a valuable role in empowering young women and teaching skills such as financial literacy, independence, and teamwork.
Through the innovative development of a digital cookie app to their well-established in-person sales — Girl Scouts of the USA has earned the title of the world’s most successful organization, dedicated to transforming girls into thoughtful and efficient leaders, and, of course, selling mouth-watering delicacies. Even so, Girl Scouts faced countless profitability issues during the pandemic, including supply chain difficulties, and backlash surrounding their lack of diversity and child labor claims. Nonetheless, the organization has continued to enhance its corporate image and adjust to manufacturing snafus, and the cookies are known as a prominent academic motivator on Berkeley’s campus.
From Scouts to Salesperson(s) — the Inner Workings
The History Behind the Cookies
Stemming from a grassroots project to fund troop activities, the organization, surprisingly, began as a high school cafeteria fundraiser. In July 1922, Girl Scouts went nationwide, published by The American Girl magazine, and continued to bake their sugar cookies from a more official standpoint. They packaged the cookies in official wax-paper Girl Scout cookie bags, selling door-to-door for approximately 30 cents per dozen. In 1936, Girl Scouts underwent the official licensing process to produce and sell their cookies nationwide. Over the next 70 years, the organization enlarged its cookie sales, expanding to over eight varieties of cookies and streamlining the number of bakers to ensure lower prices, uniform quality, and distribution.
A large step in the development of the Girl Scouts Cookie industry was the expansion of its sales strategy: integrating an innovative digital cookie platform, with traditional in-person sales method to further widen its clientele. Digital Cookie 1.0 — launched during the 2015 cookie season — allowed Girl Scouts to sell via mobile app and included other mobile features: fun quizzes, games, and videos that offer young girls opportunities to learn budgeting and financial allocation. After the official publication of the website, over 350,000 orders were placed using the platform, increasing the sales of over 2.5 million additional boxes of cookies.
The Cracks in the Cookie Jar
Supply Chain Woes in COVID’s Wake
Despite Girl Scouts’ long-standing success, the organization faced unprecedented challenges during the COVID-19 outbreak in early 2020, which instigated supply chain and manufacturing complications. The ripple effect of COVID-19 led to company closures and shifts in 2021 along with an extreme surplus: over 15 million unsold boxes of cookies, leading to 30% of in-person sales. The CEO of Girl Scouts New Mexico Trails, Rebecca Latham, described how troops in the area had approximately 22,000 boxes surplus, even after scouts attempted innovating selling methods, such as drive-through booths and contact-free delivery. The council began encouraging citizens to buy cookies through the Hometown Heroes program and the New Mexico United soccer team. On the other hand, these collaborations are quite questionable, considering how cutting out the children from the Girl Scout cookie process does not align with the objective of the company itself — empowering young women in business.
To make matters worse, the supply chain pivoted quickly from a surplus of cookies to an inability to meet production demand in 2022. 75% of local troops and bakeries began to work overtime in an attempt to make sure troops fulfilled their initial orders. However, with forced lay-offs and production delays from the previous cookie season, almost all (approximately 70%) of the cookie-baking burden has been forced onto Little Brownie Bakers, which is one of only two companies licensed to make cookies. Girl Scout USA did not respond when asked to elaborate on these issues and it remains dubious as to how Girl Scouts might mitigate these supply issues going forward. To diversify their manufacturing process, they may need to develop their manufacturing base, possibly connecting with another supplier or even another bakery.
Social Conundrums Beyond the Sweetness
In addition to prior concerns, Girl Scouts underwent public scrutiny due to social scandals surrounding child labor and anti-diversity claims. For conspicuous reasons, this led to the reevaluation of their public image. Since 2021, there have been claims linking child labor to active ingredient palm oil in Girl Scout cookies. Palm oil is now in approximately half of supermarkets, cosmetic processes, and ,as well as, appearing on labels under more than 200 different names. Around 85% of the Palm Oil industry is funded through plantations in Malaysia and Indonesia due to the rainforest climate. Child labor is a major issue for the industry, as the UN’s International Labor Organization estimated that around 1.5 million children between the ages of 10 to 17 work in Indonesia’s palm oil industry. When specifically focusing on Girl Scout cookies, the palm oil listed on the boxes is supposed to come from a sustainable source. However, it is discretely listed as a ‘mixed sustainable source’.
Additionally, when investigating supply chain organizations linked to Girl Scouts — Weston Goods of Canada and Ferrero of Italy — the organization suspiciously would not give any details regarding the supply chain process. The Girl Scout organization tweeted a statement in opposition, claiming: “Child labor has no place in Girl Scout Cookie production. The under-development of some must not facilitate our investment in the development of our world’s youth.”
The official Girl Scouts organization believes that their Bakers and “The Roundtable on Sustainable Palm Oil” (RSPO) should take action if standards are being violated. It was later publicized that there is ‘no alternative’ to palm oil and there have been no improvements ever since. Overall, the palm oil x scout cookies scandal has been kept under wraps and has not directly impacted profit margins in an evident manner. People and news sources may have individually spoken up on the environmentally unfriendly nature behind the cookies, however, it has not been broadcast.
A similar social issue that Girl Scouts — an organization with deep, historical roots in America — have had to face are allegations surrounding white supremacy culture. Historically, Girl Scouts have been presented as a primarily white organization. Looking at the most recent statistics posted from 2017, 71% of Girl Scouts are white, 13.1% African American, 17% Hispanic, and the other 10% multiracial. The demographic composition of Girl Scouts reflects broader socioeconomic patterns. For instance, geographic location can play a key role in socioeconomic disparity; areas with higher concentrations of minorities may have fewer troops. Similarly, minority communities have less access to participate in programs like Girl Scouts, due to the cost of membership fees, uniforms, and other common financial concerns.
In response to broader cultural conversations surrounding race and inclusion, the Girl Scouts of the USA offer a four-part “racial equity” training series. The DEI workshops — spanning December 2023 to March 2024 — focus on developing and introducing a shared language around diversity and equity to younger Girl Scouts. The lessons are conveniently held through GS Learn, a training platform for Girl Scout volunteers and family members. The Girl Scouts have helpfully included an “anti-racism guide” as an online resource for parents. By confronting these problems head-on through well-developed social initiatives, Girl Scouts are committing to a culture of social progress and justice.
Berkeley’s Sweet Spot
Cookie Craze in Berkeley
Students at the University of California, Berkeley, like many across the nation, eagerly await Girl Scout cookie season. Especially during rigorous midterm and final exam periods, Berkeley students often find a delightful reprieve in these sweet treats.
When interviewing five randomly selected students on Sproul, each individual answered “yes” when asked if they had recently bought Girl Scout cookies. Each of them had bought the cookies from one of three prime locations: in front of Café Strada, in front of MLK, or in front of the International House. Café Strada is a popular student-based coffee shop on the corner of College Avenue and Bancroft Way, right off-campus. MLK building — also known as the ASUC(Associated Students of the University of California) Building — is home to a variety of food,and work locations for students to indulge in. Lastly, International House is a housing complex for international students and additionally includes Edmonds — another popular coffee shop for students.
However, when asked if they consider Girl Scout cookies to be reasonably priced, in comparison to other brands, the consensus was also “yes.” Student A said, “I don’t mind the costs, but it is a bit pricey.” Student B due to the pricey cookie stated “I prefer Girl Scouts to any other cookie brand except for designated cookie stores like Insomnia or Crumbl due to the prices.” Despite the high prices and social controversies, Berkeley students continue to indulge in their beloved Girl Scout cookies, valuing the flavors that have become a staple of their academic experience.
Take-Home Points
- Girl Scout cookies are an important part of American culinary culture, going beyond just a treat by empowering young women with skills like financial literacy and teamwork.
- The Digital Cookie app enhances learning opportunities for scouts while expanding sales methods.
- COVID-19 caused supply chain disruptions, challenging the Girl Scout industry to develop solutions within their sale and distribution methods.
- Girl Scouts additionally have faced social issues surrounding child labor and anti-diversity claims.
- Despite controversies, Girl Scouts continue to be an academic motivator, especially on the UC Berkeley campus.
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