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Surely though, fruit loops could be produced more easily without paying for Kellog branding? Pirated cereals as it were?

That's pretty common, actually. For instance, Malt-O-Meal Tootie Fruities. https://www.maltomeal.com/products/tootie-fruities/

Also, both Kellogg's and Post make shredded wheat and Raisin Bran.