Two of Allen’s classic lolly varieties are to get new names.
Nestle, which owns Allen’s, announced it would rename Red Skins and Chicos.
Nestle said the decision “acknowledges the need to ensure that nothing we do marginalises our friends, neighbours and colleagues”.
“These names have overtones which are out of step with Nestle’s values, which are rooted in respect,” the statement said.
The company said it was yet to decide on the new names but “we will move quickly” to make the change.
A redskin is a slang term for Native Americans that is widely considered to be offensive.
Chico is the Spanish translation for “boy” and can be offensive to people of Latin-American descent.
The sweets are the latest in a string of brand names to fall from favour amid a widening awareness of racially charged logos and marketing.
Earlier this week, the owner of ice-cream Eskimo Pies said the brand’s name would also change.
“We are committed to being a part of the solution on racial equality, and recognise the term is derogatory,” Elizabell Marquez, head of marketing for Dreyer’s Grand Ice Cream, said.
Quaker Oats said last week it would retire its Aunt Jemima brand, saying the company recognised the character’s origins were “based on a racial stereotype”.
Elsewhere, Mars Inc is also reviewing its Uncle Ben’s rice brand.
This started was back in 1995 when the cigarette lollies “Fags” was renamed to “Fads”.