The products, which are sold in Australia, have prompted complaints for several years.
Redskin is a slur used to describe Native Americans, while chico can be a stereotypical term for Latin Americans.
Allen’s said it had received comments from customers “on the need for change.”
Red Skins are chewy, raspberry-flavored sweets and Chicos are chocolate-flavored jellies. New names for the products have not yet been finalized, according to Allen’s.
The changes have been prompted by a wave of protests around the world following the killing of George Floyd, an unarmed Black man, and ensuing conversations about the lingering racism in society, culture and marketing.