You know what biotechnology means and what its history is, but the average Joe Schlump doesn't. He sees the word, and thinks of irradiated food and gene splicing, and thinks no further. And the cereal people are trying to get at the people who are concerned about irradiation and gene spliced food. The statement on the box is a marketing device. It's not Greenpeace who wrote that--it's a marketing shlub who is trying attract people who are afraid of modern food technology. IOW, capitalism at work...

Suggestion: buy the cereal (if it was sufficiently gluten free) and write the company with an explanation of why they need to reword the blurb. I'm sure your point never even occurred to whatever copywriter wrote the blurb.