What it is
Not the caramel your grandmother burned in a pan — classes III and IV are made under ammonia and pressure. It's here to make the product look cooked.
Why your biology objects
The ammonia process leaves 4-methylimidazole (4-MEI), a byproduct California lists as a possible carcinogen with a warning threshold. The color exists to imply a browning, simmering, real-cooking step that never happened.