Caramel is an additive that is often used in spirits. It does not have to be disclosed on the label and the need for it can be debated. Because caramel is more or less dark it is used as a tool to adjust the color of the liquid.
What’s “caramel”?”
A “caramel” is a complex mixture of compounds produced by heating carbohydrates under controlled conditions. It is a dark brown to black liquid or solid, miscible (soluble) with water and contains colloidal aggregates that are key to their coloring properties. Now there are more than just one caramel. Each of the 4 classes of caramel color carries a different charge, impacting its use and application in food and bev products.
The different types:
Caramels are splits into four classes depending on which other “ingredients” the carbohydrates react with to produce said “caramel”. Those reactants work in the chemical reaction as catalysts, eg help speed up the process. These classes are class I, II, III & IV, corresponding respectively to E150a, 150b, 150c and 150d.
In alcoholic beverages, "caramel" typically refers to E150a or E150b.
E150a/Class I/plain caramel is carbohydrates heated without reactants, producing a range of hues from yellow to red-brown. It is used in various products like bread, spirits, dairy, beverages, and confections.
E150b/Class II/Caustic Sulphite Caramel, is carbohydrates heated in the presence of a sulfite compound. This class produces hues from very yellow to dark red-brown, has a negative colloidal charge and is commonly used in tea, whiskey, and brandy.
The other two classes:
Class III/Ammonia Caramel/E150c varies from a light brown to dark red-brown and is positively charged. It's a key ingredient in coloring soy sauce and beer.
Class IV/Sulphite Ammonia Caramel/E150d ranges from light brown to deep black-brown, has a strong negative charge over a wide pH range, and is mostly used in the soft drink industry.
Caramel coloring is widely used, though not many distilleries are really open about it.
Adding caramel to spirits can be seen as a way to return the booze to its original color post chill-filtration which inevitably removes some of the tannins from the wood that confer the booze its darker color. The thinking behind this often is that many customers might not fully understand the process, leading to confusion over why a spirit might be yellow or why the color might not be consistent from one batch to the next. Brands using caramel coloring tend it aim at maintaining a consistent appearance for their products.
Now let’s distinguish the above from using caramel coloring to introduce a color that wasn't there to begind with as a way to trick customers into thinking a product is older/spent more time aging in casks than it actually did.
This is straight up deceptive.