According to Southern Savers, the Publix Penny Item is:
(drum roll please)
Publix Frosted Flakes
Florida and some Georgia stores do not participate in this promotion.. sorry :(
You are eligible to receive the penny item when your total hits $10 before you hand over your coupons. Many of our local stores do not require that you take the penny item coupon (found in the weekly ad), but I have heard change is happening in a few places, so take the coupon just in case.