The names of two products produced by Nestlé will be changed, the multinational food company announced on Tuesday, in response to concerns raised over many years that the names are racist and offensive.

Nestlé will change the name of its Red Skins and Chicos sweets, produced by the Australian confectionery company Allen’s. “Redskin” is a derogatory term for Native Americans and First Nations Canadians, while “chico” can be an offensive term for people of Latin American descent.

“This decision acknowledges the need to ensure that nothing we do marginalises our friends, neighbours and colleagues,” Nestlé said. “These names have overtones which are out of step with Nestlé’s values, which are rooted in respect. While new names have not yet been finalised, we will move quickly to change these names.”

Both products are only sold in Australia.

On Facebook Allen’s wrote it “appreciates the comments we have received on the need for change”.

“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.”

One Facebook user, Islay Fullerton, responded: “Good work Allen’s”. “To the people up in arms, enjoy your privilege that this doesn’t upset you,” she wrote.

Another user, Laura Houghton, wrote: “A lot of people in the comments saying ‘I don’t think about racism when I buy redskins, I just think about a lolly I like’. To those people I say – you don’t think about racism because it’s not directed at you.”

Nestlé’s move follows renewed discussions in Australia driven by the Black Lives Matter movement about the names of places and brands which may be offensive to Indigenous people and other marginalised communities.

Debate has been reignited about Australia’s historical statues which celebrate early white colonists, with no acknowledgement of the harm, violence and displacement experienced by Indigenous people as a result of their actions.