The only part I remember is that something goes wrong with the red dye in breakfast cereal and during cold season when everyone throwing up/having other GI issues people think it’s much worse than it is, causing a publicity nightmare for the cereal company.
Lost Classics of Teen Lit: Name That Book! 
Minor side plot in Cujo by Stephen King. Red Razberry Zingers inspired by a real life incident with Franken Berry cereal.
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Yes, definitely Cujo.
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