Because peanuts on their own have to be visibly pleasing as peanuts or people won’t buy them. When you put them in a candy bar, you can use the crap looking ones.
Also, buying in bulk drastically decreases the price. If you had the purchasing power of Hershey, you could get your peanuts really cheap too. Join a food co-op as a starting point.
As a now parent… How the hell was that ok to give to kids??
Here’s a metal baseball. Throw it towards your friends.