Boxes stack better and shelve better. Cereal weighs a lot more than potato chips. Think how hard it is to shelve potato chips? Now imagine the chips in each bag were heavy enough to crush/pop other bags when handled carelessly. Also, branding on a box works better for cereal, because you want certain things on the front and back and certain things on the sides and top. Printing all that stuff on a bag is less ideal.
Edit: Bag, not back.
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