The Annatto seed is a South American spice that has a slightly peppery aroma with a hint of nutmeg. Annatto is often used to color other foods as it is very richly hued itself. Annatto lends a lively reddish orange hue to that which it is combined with and is often used to color cheeses butters and ice creams. Annatto has peppery lightly sweet flavor. | A rich reddish orange hued spice often used as a food coloring. Flavor is peppery and savory.