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Annatto
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Annatto, sometimes called Roucou, is a derivative of the achiote trees of tropical regions of the Americas, used to produce a red food coloring and also as a flavoring. Its scent is described as "slightly peppery with a hint of nutmeg" and flavor as "slightly sweet and peppery" .
Annatto is produced from the reddish pulp which surrounds the seed of the achiote (Bixa orellana L.).

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Encyclopedia
Annatto, sometimes called Roucou, is a derivative of the achiote trees of tropical regions of the Americas, used to produce a red food coloring and also as a flavoring. Its scent is described as "slightly peppery with a hint of nutmeg" and flavor as "slightly sweet and peppery" .
Annatto is produced from the reddish pulp which surrounds the seed of the achiote (Bixa orellana L.). It is used in many cheeses (e.g., Cheddar, Red Leicester, and Brie), margarine, butter, rice, smoked fish and custard powder.
Annatto is commonly found in Latin America and Caribbean cuisines as both a coloring agent and for flavoring. Central and South American natives use the seeds to make a body paint, and lipstick. For this reason, the achiote is sometimes called the lipstick-tree.
History Annatto has long been used by indigenous Caribbean and South American cultures. It is believed to originate in Brazil . It was probably not initially used as a food additive but for other reasons, such as body painting, to ward off evil, and as an insect repellent . The ancient Aztecs called it achiotl, and it was used for Mexican manuscript painting in the sixteenth century . In Jamaica, annatto has had many uses over the centuries, including as a food dye, body paint, treatment for heartburn and stomach distress, sunscreen and insect repellent .
Uses In Jamaica, annatto has had many uses over the centuries, including as a food dye, body paint, treatment for heartburn and stomach distress, sunscreen and insect repellent. In Venezuela, annatto (called locally onoto) is used in the preparation of hallacas, perico, and other traditional dishes. In Brazil, both annatto (the product) and the tree (Bixa orellana L.) are called urucum and the product itself may also be called colorau. In the Caribbean islands, both fruit and tree are popularly called achiote or bija (pronounced "bee-ha") instead of Bixa. In the Philippines, it is called atsuete and is used as food coloring in traditional dishes.
It is a major ingredient in the popular spice blend "Sazón" made by Goya Foods .
Use as a food coloring
The annatto seed contains 4.5-5.5% pigments, which consists of 70-80% bixin..
As a food additive, annatto has the E number E160b. The fat soluble part of the crude extract is called bixin, the water soluble part is called norbixin, and both share the same E number as annatto.
In the United States, annatto extract is listed as a color additive “exempt from certification” ( Title 21 Code of Federal Regulations part 73) and is commonly considered to be a natural color. The yellowish orange color is produced by the compounds bixin and norbixin, which are classified as xanthophylls, a type of carotenoid. However, unlike beta-carotene, another well-known carotenoid, they do not have the correct chemical structures to be vitamin A precursors. The more norbixin in an annatto color, the more yellow it is; a higher level of bixin gives it a more reddish shade. Unless an acid-proof version is used, it takes on a pink shade at low pH.
Cheddar cheese is often coloured and even as early as 1860 the real reason for this was unclear: English cheesemaker Joseph Harding stated "to the cheese consumers of London who prefer an adulterated food to that which is pure I have to announce an improvement in the annatto with which they compel the cheesemakers to colour the cheese".
Allergies to annatto Annatto has been linked with many cases of food-related allergies, and is the only natural food coloring believed to cause as many allergic-type reactions as artificial food coloring. Because it is a natural colorant, companies using annatto may label their products "all natural" or "no artificial colors". However, consumers with food dye sensitivity or intolerance may wish to avoid products containing annatto.
Footnotes
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