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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