I grew up only a couple of miles from the Shredded Wheat plant in Niagara Falls. I remember there was a train derailment in their yards in the early 1950s and the boxcars were filled with peanut shells. My father was convinced they used peanut shells in making Shredded Wheat.
Way back then no one was allergic to peanuts (perhaps because peanut shells were in children's Shredded Wheat!?). Peanut shells are relatively tasteless so I bet they could incorporate them into the wheat blend just before it was toasted.
When I was a kid in the 70s I only recall knowing one kid with a peanut allergy and it wasn't even anyone I knew well. Somebody's cousin or something like that. Now my kids have friends with all kinds of food allergies and sensitivities.
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It does make you wonder, though. Maybe they were experimenting with a peanut-flavored Shredded Wheat.
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