Confectionery giant Nestle has announced it will change the name of it’s Allen’s Red Skins and Chicos lollies as they are “out of step” with company values.

Red Skins, a red raspberry-flavoured chewy strap takes its name from a derogatory term for Native Americans. The original Red Skins wrapper featured a Native American in a traditional headdress, which was replaced in the 90s with plain pink and purple packaging.

Meanwhile, Chicos, the chocolate-flavoured jelly babies, references an offensive term for people of Latin American descent.

The announcement was made on Allen’s official Facebook account today. “At Allen’s we are about creating smiles,” the post read. “Today we announced that we will change the name of Red Skins and Chicos lollies.

“This decision acknowledges the need to keep creating smiles, ensuring that nothing we do marginalises our friends, neighbours and colleagues, or is out of step with our values.

“We haven’t finalised the new names, but we’ll keep you posted.

“We appreciate the comments we have received on the need for change.”

Allen’s Red Skins and Chicos are only available to purchase in Australia.