Mike,

Whether that is a taxable sale or not would depend on your State's law which may be different from every other state.

Here in NY if you buy a bag of the large marshmallows you pay tax on the sale because they are classified as "candy" which is taxable. However if you purchase a bag of those mini marshmallows there is no tax because they are not classified as "candy". Only a government bureacrat could invent that distinction.