Annatto is an orange-red condiment and food coloring derived from the seeds of the achiote tree (Bixa orellana). It is often used to impart a yellow or orange color to foods, but sometimes also for its flavor and aroma. Its scent is described as "slightly peppery with a hint of nutmeg" and flavor as "slightly nutty, sweet and peppery.
The color of annatto comes from various carotenoid pigments, mainly bixin and norbixin, found in the reddish waxy coating of the seeds. The condiment is typically prepared by grinding the seeds to a powder or paste. Similar effects can be obtained by extracting some of the color and flavor principles from the seeds with hot water, oil, or lard, which are then added to the food