Caramel colours are dark brown to black liquid or solid having a characteristic odour of burnt sugar and a pleasant bitter taste. Caramel colours are totally miscible in water and contains colloidal mass which accounts for their colouring properties and its characteristic behaviour with acids, salts, alcohols, tannin etc. Caramel colours are manufactured by controlled cooking of food grade carbohydrates in the presence of certain catalyst to assist caramelization. The resulting caramel colours are very safe additives, and are GRAS (Generally Regarded as Safe) according to 21 CFR 582.1235 and are excempt from USA Food and Drug Administration Certification Based on the type of catalyst used, the caramel is divided into four classes. They are: Class I (E150a) which is also termed as Plain Caramel, Class II (E150b) which is also termed as Sulphite Causitc Caramel, Class III (E150c) also termed as Ammonia Processed Caramel, and Class IV (E150d) also termed as Ammonia Sulphite Caramel. Each class of caramel colour has different specifications as per the regulation and they are suitable for certain applications. Caramel colour has excellent heat, light, and acid stability and works in a variety of applications.