Yes! We've used it for 8 years in our coop and this past year started using it in our brooders too! No, they don't confuse it with their own feed. Of course, they all probably try it once and go "bleh!"
I've heard you can use grilling pellets for coop bedding but not the other way around. Usually, pine pellets aka horse bedding pellets are about $8 for 40# at farm stores. We take 3.5 bags for a 60-square-foot coop. We change them only once a year, in the spring. We haul it all out, which by this time is pulverized chicken poop and sawdust, and put some in the garden, around trees, in flower beds, and in the compost bins, then sweep and lay down another 3" or so, good for another year.
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