They looked more like elves than gnomes to me. I’ve seen articles that called them either or both within one paragraph. Most of what I read simply called them mascots.
1933
In a Snap™, a star was born. A tiny gnome wearing a baker’s hat and carrying a spoon — the earliest version of Snap™ — appears on the side of the cereal box.
In a few other years listed they’re variously called “boys” and “guys”.
They are elves. They are in witness protection due to the disappearance of their brother Pow. It’s unclear whether they are suspects, witnesses, or simply in fear for their lives.
It is also uncertain if Pow ended up in the same hands as Zeppo Marx, who also mysteriously disappeared with Gummo.